In this era of rapid artificial intelligence (AI) advancement, consumer expectations for smart homes have evolved. They no longer see these devices as tools that merely follow commands but as lifestyle companions that provide proactive and thoughtful services. Smart home systems are expected not only to address routine household tasks but also to recognise and respond to users' emotional needs. To achieve sustainable growth amid pressure on the home appliance and home furnishing industries, brands need to support consumers both physically and psychologically.
Laura Liu, Senior Research Analyst – Retail & Home Appliances, China
Market Definitions
The generally accepted industry definition of a smart home is the organic integration of hardware devices, software systems and service platforms in the residential environment through Internet of Things (IoT) technology, constructing a home living ecosystem with environmental awareness, data interaction and intelligent decision-making capabilities.
The smart home products covered in this Report mainly include the mainstream smart products currently on the market, which are household appliances and home products that can be connected to the internet and controlled through a mobile phone app or via interactions such as voice and gestures. They can be divided by usage scenarios such as audio-visual entertainment, security protection, health management and creating comfortable living spaces.
- Smart audio-visual entertainment products mainly include smart TVs, smart projectors and smart speakers
- Smart security protection products mainly include smart locks and smart cameras/surveillance systems
- Smart home comfort products mainly include smart air conditioners, smart air purifiers, smart cleaning appliances, smart lighting, smart curtains etc
- Smart health management products mainly include smart fridges, smart water purifiers, smart washing machines/dryers, smart kitchen appliances, smart toilets, smart mattresses/pillows etc
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EXECUTIVE SUMMARY
- Key issues in this Report
- Definition
- What you need to know
- Market factors
- Consumer insights
- Opportunities in sub-categories
- Opportunities among consumer segments
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THE MARKET
- Market overview
- Market overview for each category
- Market factors
- Housing market struggles in 2025, but new rules could give smart homes a boost
- Graph 1: sales area of new commercial housing and year-on-year growth rate, 2020-25
- Graph 2: real estate climate index, 2021-25
- Home appliance national subsidy continues in 2026, only for Grade 1 energy-efficient products, steering the industry towards greener development
- Graph 3: YOY growth rate of value sales by companies above a designated size – household appliances and audio-video equipment, 2025
- Technology empowerment: updates to the Matter protocol help accelerate cross-brand interoperability in smart homes
- China’s pet market is growing steadily: focus on pet owners who are more enthusiastic about buying smart home products
- Graph 4: size of the pet care market (RMB m) and growth rate, 2015-24
- Graph 5: smart home products that consumers do not own but are interested in purchasing, by pet ownership, 2025
- As urbanisation progresses, lower‑tier cities present further growth potential that is worth exploring
- Graph 6: nominal growth rate of disposable income among residents, 2020-25
- Market highlights
- AI enables further functional upgrades in smart home products
- Smart technology is no longer cold and mechanical, it is evolving into a tool for emotional and sensory wellbeing
- Focus on sophisticated pet needs and use smart functions to express care for pets
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CONSUMER INSIGHTS
- Smart homes evolve from following commands to anticipating needs as attentive companions
- Smart home ownership rate increases steadily year on year but over 60% of users have not connected their devices to the internet
- Smart home ownership rate has increased steadily year on year but over 60% of users have not connected their devices to the internet
- Graph 7: proportion of smart homes ownership, 2022-25
- Graph 8: ownership and usage of smart homes, 2025
- Smart home products must shift from passive execution to active learning to truly understand users
- Graph 9: perception of smart homes, 2022
- Graph 10: definition of smart homes, 2025
- Operational complexity prevents middle-aged and older consumers from connecting smart products to the internet and using them
- Graph 11: ownership and usage of smart homes, by generation, 2025
- Younger consumers seek hands-free automation; middle-aged and older consumers lack a defined perception of smart technology
- Graph 12: definition of smart homes, by generation, 2025
- Graph 13: definition of smart homes, by generation, 2025
- Smart technology is evolving from passive response to proactive service, unlocking enhanced emotional companionship in the future
- Cut the hassle and bring comfort to your home
- Cut down on the energy spent on chores and enjoy a more relaxed home
- AI capability is the top priority; when product features are limited, consumers prioritise safe, environmentally friendly materials and cross-brand interoperability for premium spend
- Graph 14: premium factors for smart homes, 2025
- Women aged 30-39 face multiple pressures and are particularly eager for AI to free them from household chores
- Graph 15: premium factors for smart homes, by gender and age, 2025
- Leading brands are using AI to help consumers go hands-free and make home easier to manage
- Over half of consumers are fairly satisfied with the current state of smart home solutions, but further improvements are still needed in user experience and privacy protection
- Graph 16: attitudes towards smart homes, 2025
- Tap into the potential of the silver economy by enhancing user experience to strengthen perceived value among older consumers
- Graph 17: attitudes towards smart homes, by generation, 2025
- Smart should go beyond utility and address emotional needs
- Smart homes that prioritise healthy living while also addressing energy-saving needs are more likely to attract consumers
- Graph 18: attractive claims of smart home products, 2025
- Existing users shift towards emotional fulfilment; potential users evaluate product features
- Graph 19: attractive claims for smart home products, by smart home ownership, 2025
- Beyond promoting healthy living, brands can highlight the hands-free automation experience and enjoyment enabled by smart technology
- Health monitoring meets the advanced needs of current users, but brand compatibility still needs work
- Graph 20: premium factors for smart homes, by smart home ownership, 2025
- Avoid pseudo-intelligence, meeting genuine user needs is the primary purpose of smart functionality
- Objective information supports informed consumer decisions
- Graph 21: promotional approaches that spark interest in smart home devices, 2025
- Embrace imperfections, minor niggles can become trust-building selling points
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OPPORTUNITIES IN SUB-CATEGORIES
- Smart home overall: smart audio-visual systems and robot vacuum-mops have higher ownership rates, while major smart home appliances have more potential buyers
- Graph 22: smart home ownership rate and purchase intent, 2025
- Smart audio-visual equipment (smart TV)
- Looking globally, smart TV ownership in China exceeds that of the US and Japan
- Graph 23: ownership rate of smart TV, 2024-25
- Smart TV brands are diversifying application scenarios tailored to specific demographics
- Major smart home appliances (refrigerator, washing machine, air conditioner)
- Consumers are willing to pay for smart upgrades that enhance performance and reduce energy consumption
- Graph 24: smart home products that consumers plan to upgrade and are interested in buying, 2025
- Consumers want more than just clean and dry; they’re looking for garment care for everyday and delicate fabrics
- Smart security device
- Looking globally, Chinese consumers face lower barriers to accessing smart security devices and have higher ownership rates
- Graph 25: ownership rate of smart security devices, 2023-25
- Beyond safeguarding users, smart security must also avoid infringing on others’ privacy
- Smart toilet
- Consumer reservations about smart toilets stem mainly from awareness, habit and hygiene concerns
- Graph 26: YOY value sales growth rate on JD.com, 2022-25
- Brands can stimulate demand for smart toilets through government–enterprise collaboration, habituation through basic smart products and product upgrades
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OPPORTUNITIES AMONG CONSUMER SEGMENTS
- Pet owners – move beyond basic feeding to emotional connection
- Proactive service-enabled devices allow pet owners to reduce involvement in routine feeding tasks, thereby allocating more time for emotional interaction with their pets
- Graph 27: definition of smart devices, by pet ownership, 2025
- Graph 28: attractive claims, by pet ownership, 2025
- In addition to demonstrating product capability, meeting pet owners’ need for community connection can enhance marketing effectiveness
- Graph 29: does not own the following smart home products, but is interested in purchasing, by pet ownership, 2025
- Smart home brands can position pet psychological wellbeing as a future upgrade direction
- Younger consumers – enjoy the benefits of convenience with both functionality and emotional value optimised
- Younger consumers value the proactive nature of smart homes and favour products that offer hands‑free convenience
- Graph 30: attractive claims of smart home products, by age, 2025
- Differences within younger consumers: 18-24s are trend-driven and pleasure-oriented, 25-29s are more pragmatic
- Graph 31: attractive claims of smart home products, by age, 2025
- Graph 32: attitudes towards smart homes, by age, 2025
- Functionality is not the only consideration, emotional fulfilment can also be a key driver
- Demand for hands‑free convenience and emotional comfort
- Lower-tier cities – strong consumption potential but guidance is needed to uncover real needs
- Smart product ownership rate in lower-tier cities is on par with that in higher-tier cities but the rate of connected usage remains low
- Graph 33: ownership and usage of smart homes, by city tier, 2025
- Consumers in lower-tier cities have yet to lose their spark for tech
- Graph 34: attitudes towards smart homes, by city tier, 2025
- Quantity over quality: feature quantity drives purchase in lower-tier cities
- Graph 35: premium factors for smart homes, by city tier, 2025
- Graph 36: premium factors for smart homes – repertoire analysis, by city tier, 2025
- Smart home brands can mitigate post-purchase concerns through attentive and comprehensive service
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WHAT WE THINK
- What we think
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APPENDIX – METHODOLOGY AND ABBREVIATIONS
- Impact of national subsidy policies on consumers’ home appliance purchases
- Graph 37: impact of national subsidy policy changes on home appliance purchases, 2026
- Home appliances people plan to purchase for their older relatives during Chinese New Year
- Graph 38: home appliance category people plan to purchase for their older relatives during Chinese New Year, 2026
- Reasons for buying home appliances for older relatives during Chinese New Year
- Graph 39: reasons for purchasing home appliances for older relatives during Chinese New Year, 2026
- Methodology
- Research methodology TURF
- Qualitative research participants
- Abbreviations
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