US Connected Home Market

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Connected Home Market Size

According to the Digital Market Outlook on smart homes by Statista, $5.474 billion was spent on smart homes in the US in 2018 with more than 45 million smart home devices installed in US homes in the same year. In 2019, the smart homes market size is $27.75 billion, with the revenues projected to grow at a CAGR of 12.0% between 2019 to 2023 to reach $43.671 billion in 2023.

u.s connected home market size

As of 2019, the smart home market size amounts to US$27.75 billion, as per Statista. This revenue is expected to reach $43.671 billion by 2023, growing at an annual rate of 12.0% between 2019 and 2023. According to the Statista Digital Market Outlook, $5.474 billion was spent on smart homes in the United States in 2018. Currently, the penetration rate of smart home tech in the United States stands at 33.2% and is projected to reach 53.9% by 2023. On average, the revenue per installed smart home in the United States is $113.16.


According to S&P Global Market Intelligence, the number of U.S. smart homes grew to over 15 million by the end of 2016, representing around 12.5% of total U.S. households. As per the report, by 2021, 28% of all households in the United States will be smart homes. Currently, there are 42.2 million smart homes in the United States and more than 45 million smart home devices. According to statistics from the National Council for Home Safety and Security, 47% of millennials in the United States own smart devices, while 70% of those who already have one smart product are considering purchasing another.
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Connected Home Projections

An exhaustive search of the public domain indicates that information on the projections/trends for the connected home market for the next five years in the US is non-existent, and media coverage on the specified topic is scarce. The most relevant media mentions on the topic include that in 2023, the global smart home market is expected to be $150.6 billion and in 2021, 28% of the US households will use the smart home technology. Below are our detailed methodology and deep findings.


We began our research by looking into research reports and industry articles on the connected home industry in the US. We looked into credible sources like Forbes, Money, Market Watch, Reuters, Markets and Markets, among others. While we could find the global market value, trends of the industry, the number of households in the US who use this technology, and the forecast of these households for the next two years, we could not find the specific US value, projected cost, or trends.

Next, we broadened the research criteria to include global reports with the objective of finding enough data points to help us triangulate the market share the US represents and calculate its market value. We went through industry reports such as Persistence Market and the sources we used in the first strategy. From Persistence Market website, we could find that the US is the main market for connected homes, however, none of the other sources provides enough data points to help in calculating the US market percentage or its projected growth.

Fortunately, these reports provided information on the connected home market trends, including trends in energy technology like lighting and thermostat on a global scale. With this information, we decided to use global trends in our findings below because we made an assumption that these trends would apply to the US connected home market as it's the main market on the globe. However, we could not triangulate the US market value due to for data. Finally, we locates some helpful insights on the connected home market in the world and the United States from these sources: the Persistence Market and Market Watch. However, we could not access the full reports because they are behind the paywall.


The connected home industry comes from the IoT (internet of things). The user uses a control hub from the digital devices that connects him/her to his/her home in order to monitor and control the home and household appliances. The connected home global market reached a market size of $42 billion in 2017. The market is divided into Smart Entertainment, Smart Appliance, Wellness and Monitoring, Security and Safety, and Energy and Utilities Management.

trends in the NEXT FIVE YEARS

Some of the biggest trends in the connected home market have been propelled by the advances in machine learning (ML) and artificial intelligence (AI) technologies, the drop in tech prices, and the increased adoption of smart home technology in 2019. The connected home, smart home or home IoT industry market value is set to expand by either doubling or tripling by 2022. At a CAGR of 14.2%, the global connected home value is expected to reach a size of $140 billion by 2026 according to Persistence Market Research, but as per the Market Watch, the global connected home market is expected to reach $138 billion by 2026.

In 2023, the global smart home market is expected to be $150.6 billion, while in 2020, the American market home connected robots are expected to have a market value of $11 billion. The global security home market has an annual growth of 27%. The Energy and Utilities Management segment earned a value of more than $10 billion in 2017, while Smart Appliances had value of $7 billion and is expected to grow to $36 billion in 2026.


In 2016, 12.5% of the US households used the smart home technology with 15.3 million households adopting it. In 2017, the percentage of the households that had adopted to this technology in the country was 16.3% with 20.1 million households, 19.6% in 2018 with 24.3 million households, and by the end of 2019, the percentage is expected to grow to 22.5% with 28.1 million households, to 25.5% in 2020 with 32.2 million households, and to 28.0% in 2021 with 35.6 million households.


In 2017, there was 27 billion devices connected globally, and the number is expected to grow to 125 billion by 2030. Fifteen is the average number of the connected devices per person, and currently, 600 million people are using the voice control technology. In the US, the connected devices to manage energy like lightning devices and thermostats have increased in demand in the last years because of how easy they are to use them and their capacity to save costs.


Home Energy and Smart TV devices are already established trends that offer low business potential in the future as the market is already saturated. Smart Gardening and EV Home charging devices are niches that offer a potential trend and are about to grow in the future. Smart Sound, Home Robots, and Smart Energy Management are the current trends that are booming and are expected to grow even more in the future. Smart Metering, Smart Toys, Smart Lighting, Smart Home Security, and Smart Home Appliances are upcoming trends.

The services and technologies that are expected to grow in 2019 and upcoming years include:
  • Voice control: With more than 100 million smart speakers currently in use, the voice-activated control of smart home devices is expected to continue being one of the strongest trends as people are relying more on the ease of control and use that these smart speakers offer to control their appliances and other home technology.
  • Scheduled automation: Another trend that is expected to grow in the future years is the possibility of scheduling the appliances tasks, such as the coffee makers, toasters, blinds, alarms, among others.

  • Smart kitchen appliances: The kitchen market is also expected to continue with a positive trend with equipment like toasters, kitchens, ovens, processors, and more.

  • Lighting at a circadian rhythm: Smart lights are one of the top markets in connected home, in the future this technology is expected to grow to use circadian rhythm to control the natural lights, dimmed lights, among others and change according to the day, night, sun, among others.

Costs related to those devices (unit cost or per home cost/projects)

Some leading devices include Amazon Echo priced at $50, SkyBell HD video doorbell priced at $199, and the Nest Learning Thermostat priced at $250. In the US, the energy smart connected home setup costs approximately $13,600 with garden technology, alarm system, security cameras, cleaning robots, thermostat, motorized window blinds, smart plugs, a video doorbell, door locks, lighting, and smart speaker. If a smart fridge is added, the customer adds another $3,000.

Did this report spark your curiosity?


From Part 01
  • "Statista's Digital Market Outlook (DMO) on smart homes reveals the numbers. $5.474 billion was spent on smart homes in the US alone in 2018; China, in comparison, reached just a measly $1.083 billion. But Statista notes that number is only about 1 percent of the potential market for China."
  • "Kagan, a media research group within S&P Global Market Intelligence, reports that the number of U.S. smart homes grew to over 15 million at the end of 2016. While this total equates to just 12.5% of total U.S. households, that percentage is forecasted to grow to 28% by 2021."
  • "Current statistics show that the smart house market will approach 40 billion USD in the US alone by 2020. Many people look to smart houses to make their lives more convenient and lower the amount of things that they have to worry about. 57% of Americans say that having smart products in their house saves them about 30 minutes per day, that's 182.5 hours a year, or roughly a week and a half. The percentage of people with smart products in their house is growing substantially with 47% of Millennials already owning some devices while 70% who already own one product are planning to buy another one. (Source:"