Canadian households are navigating a delicate balance between tightening budgets and the essential status of smart technology in the home. Despite macroeconomic pressures, the resilience of this category stands out, as shown by the fact that 89% of smart-tech owners now have a smart TV, making it the anchor device in most homes. Such penetration signals both the durability and adaptability of smart tech, even as discretionary spending is restricted.
Industry players, especially builders and ISPs, are intensifying collaboration to embed connectivity in new home builds, aiming to boost average revenue per user and future-proof their offerings. Yet, the sector faces mounting concerns around privacy and data security, with over three quarters of Canadians worried about data breaches associated with smart devices. This pervasive anxiety signals an urgent need for brands to demonstrate transparency and invest in robust consumer education and security infrastructure.
The biggest opportunity for brands is in affordable, energy-saving bundles that can broaden the market while increasing loyalty and lifetime value. However, there remains a significant threat of adoption stalling if cost and trust issues are not proactively tackled. The future outlook points to a market where mandatory smart features in new builds are the norm – companies must move quickly to bridge gaps in affordability and trust in order to sustain growth and broaden participation.
This report looks at the following areas:
- Inflation’s impact on discretionary spending vs perceived necessity of smart connectivity
- Generational and ethnic skews in device ownership, control methods and data-sharing attitudes
- Affordability, complexity and privacy as primary adoption barriers
- Shifts toward bundled financing, setup/repair services and predictive maintenance
- Emerging integrations: car-to-home control, biometric locks and AI companions
- Regulatory and ethical challenges around data security and consent
Future growth hinges on the ability to evolve from luxury to necessity, via practical, service-driven solutions that address affordability and trust.
Michael Lloy, Research Analyst
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EXECUTIVE SUMMARY
- What you need to know
- Overview
- Opportunities
- Practical value will drive adoption and sales
- Bundling and financing may be key to future adoption as cost looms as a major barrier
- Service-driven strategies win in Canada’s diverse smart home market
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THE MARKET
- Consumers and the economic outlook: technology in the home
- Costs remain elevated for Canadians
- Graph 1: consumer price index, 2025
- Affordability, efficiency and inclusivity: key drivers of growth in Canada’s smart home market
- The face of Canada will look very different in the near future
- Graph 2: proportion of visible minority in Canada, 1981-2036
- Graph 3: population aged 0-14 and 65+, 2000-2040 (projected)
- Adapting to Canada’s changing demographics: opportunities for smart home technology
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THE CONSUMER
- Current smart home setup
- Smart TVs and speakers are, by far, the most widely-owned smart devices in Canada
- Graph 4: smart home device ownership, 2025
- Younger consumers are more likely to own smart appliances and smart aesthetic/environmental devices, but entertainment is more widespread
- Graph 5: smart home device ownership (NETs), by age, 2025
- Mirroring younger consumers, Canada’s ethnic populations are more likely to own smart home security and environment devices, along with appliances
- Graph 6: smart home device ownership (NETs), by race, 2025
- Smartphones remain the most common method of controlling smart home devices, with men most likely to be controlling smart tech in the home
- Graph 7: method of controlling smart home devices in the home, 2025
- Perceptions of complexity erect barriers to ownership and usage, especially among older women
- Graph 8: “I don’t use certain features on my smart devices because they’re too confusing” (% agree), by age and gender, 2025
- Interest in smart home technology
- Form over function: the surprising consumer perception of smart home technology
- Black and South Asian consumers were significantly more likely to desire setup and maintenance services
- Graph 9: “I’d be more interested in purchasing smart home products if I could hire someone to help with setup or fixes” (% agree), by race, 2025
- The living room is the place where consumers are most likely to want to add smart home technology
- Graph 10: areas in the home consumers most desire to add smart home tech to (any rank), 2025
- However, significant challenges exist to further expansion of smart home tech adoption
- Graph 11: smart home device purchase interest among non-owners, 2025
- Male non-owners are significantly more likely to be interested in the majority of smart home tech
- Graph 12: purchase interest for select smart home devices among non-owners, by gender, 2025
- One way that brands can expand adoption is by offering setup or repair services
- Graph 13: “I’d be more interested in purchasing smart home products if I could hire someone to help with setup or fixes” (% agree), by age and gender, 2025
- Unsurprisingly, affordability remains a major concern
- Household chores and automation
- Women are significantly more reticent to allow smart devices to collect and utilize their data
- Graph 14: “I am comfortable with home automation systems learning about my habits to optimize my living experience”, by age and gender, 2025
- This reticence to share data has resulted in a significantly lower likelihood of imagining a future where a home anticipates a homeowner’s needs
- Graph 15: “I see a future where my home anticipates my needs”, by age and gender, 2025
- Consumer chore dissatisfaction aligns pretty directly with a desire for automation
- Graph 16: chore dissatisfaction (any rank) vs desire for automation, 2025
- There are differing generational pain points when it comes to chores
- Graph 17: household chores disliked the most (any rank), by age, 2025
- Black, Chinese and especially South Asian consumers, all express significantly higher comfortability with sharing data with automation systems
- Graph 18: “I am comfortable with home automation systems learning about my habits to optimize my living experience” (% agree), by race, 2025
- Future of smart home technology
- Smart home tech is becoming a primary expectation for new homes
- What consumers want: practicality and safety in smart home tech
- Graph 19: future tech scenario sentiment, 2025
- Turning insights into action: how brands can build trust and drive adoption
- Men are significantly more likely to feel positively about a majority of future “tech-in-the-home” scenarios
- Graph 20: positive sentiment towards future tech scenarios, by gender, 2025
- Men are significantly more open to the idea of AI companions
- Graph 21: “I would enjoy having an AI companion to talk to and form a friendship with” (% agree), by age and gender, 2025
- Aligning with younger consumers, Canada’s ethnic minorities feel positively about most future home tech scenarios
- Graph 22: positive sentiment towards future tech scenarios, by race, 2025
- Are cars driving smart home innovation? Some consumers say yes
- Graph 23: smart home tech and car integration attitudes (% agree), by gender, 2025
- Black and South Asian consumers, in particular, are interested in automobile integrations with smart home tech
- Graph 24: smart home tech and car integration attitudes (% agree), by race, 2025
- People still have many concerns about AI, causing barriers to adoption
- Graph 25: concerns over AI (% agree), by age, 2025
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PRODUCT, INNOVATION AND MARKETING
- Centralized smart hubs simplify home automation for tech-savvy Canadians
- AI thermostats revolutionize Canadian homes with energy efficiency and automation
- AISmart doorbells enhance home security with facial recognition and real-time alerts
- Biometric smart locks redefine security for modern Canadian families
- Connected appliances transform kitchens with voice control and inventory tracking
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APPENDIX
- Consumer Questions
- Consumer research methodology – Canada
- Abbreviations
- Abbreviations and terms
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