Smart home technology has become a staple in modern households, with 86% of consumers having some form of smart home technology in the home and 59% having at least two types of devices. While 54% of consumers say these devices become outdated quickly, only 11% consider the availability of the latest features important when making a purchase.
The perceived value of smart home technology increases with the number of device types in the home, but cost remains the biggest consideration when buying smart home technology, hindering ownership of multiple devices. Data security is another significant barrier for market engagement, as 62% of consumers don’t feel comfortable with the amount of personal data that smart home devices collect on their users.
As consumer finances improve, the adoption of smart home technology is likely to grow, especially with the rise of Matter-compatible devices at various price points, offering greater affordability and interoperability. It is important that brands communicate the tangible value of their devices in clear, accessible language while also strengthening data security measures to build trust.
This report looks at the following areas:
- Analysis of the market background and factors affecting the future of technology in the home
- Launch activity and innovation of brands operating in the smart home space
- Smart devices within the home and the methods used to control devices
- Drivers influencing the choice of smart home devices
- Consumers’ attitudes towards future smart home technology scenarios
- Perceived value of smart home technology and interests, including device compatibility and personal data access
The practicality of smart home technology should be prioritised over flashy features, with data security being another key area of focus.
Sam Nguyen, Senior Retail Analyst
Market Definitions
For the purposes of this Report the labels ‘smart’ and ‘connected’ refer to a family of features, including home automation and adaptive behaviour powered by machine learning; connectivity with other devices (including, but not limited to, a user’s smartphone) via various protocols (including Wi-Fi and Bluetooth); and providing users with data on device usage (eg energy consumption data).
Devices referred to as ‘smart’ and/or ‘connected’ may have some but not all of these features. The connected home products included within the scope of Mintel’s consumer research for this Report are:
- Voice-controlled speaker (eg Amazon Echo, Google Home)
- WiFi/Bluetooth smart speaker (eg Sonos Play – excluding voice-controlled)
- Smart thermostat (eg Nest Thermostat, Hive Heating)
- Smart plugs (eg Hive Active Plug)
- Smart home sensors (ie smart motion sensor, smart window sensor)
- Smart security camera (eg Ring Spotlight Cam – excluding as part of a smart doorbell)
- Smart doorbell (eg Ring Video Doorbell)
- Smart/WiFi connected fridge/freezer
- Smart/WiFi connected vacuum cleaner (eg iRobot Roomba)
- Smart/WiFi connected washing machine
- Smart/WiFi connected lightbulbs (eg Philips Hue)
- Smart/WiFi connected locks
- Smart/WiFi connected air purifier
- Smart TV
- Smart/WiFi connected smoke detector
- Smart/WiFi connected water leak detector
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EXECUTIVE SUMMARY
- Opportunities for technology in the home
- Lower the cost barrier to engaging with smart home technology
- Highlight the value, not just the tech
- Turn data sharing concerns into a win-win
- Selling data is the future
- Market dynamics and outlook
- Consumers are increasingly knowledgeable about AI
- Graph 1: knowledge of AI, 2023 and 2024
- AI accelerates innovations in the smart home space
- What consumers want and why
- Smart TVs remain the most popular smart home device
- Graph 2: technology products at home, 2025
- Apps are the most popular way to control devices
- Graph 3: methods to control smart home devices, 2025
- Affordability is placed at the forefront
- Graph 4: most important factors when buying a smart home device, 2025
- Enthusiasm towards smart home scenarios is mainly restricted to younger adults
- Graph 5: attitudes towards smart home scenarios, 2025
- Lower cost options attract more people to the market
- Graph 6: attitudes and behaviours towards smart home devices, 2025
- Growing frustration in getting devices to work together
- Graph 7: attitudes and behaviours towards smart home devices – device usability, 2025
- The need to prove how personal data is protected
- Launch activity and innovation
- Immersive home entertainment experiences
- Leveraging AI to optimise energy consumption
- Doublepoint launches free Apple Watch app to control devices with hand gestures
- LG promotes the meaningful experiences that AI can bring about
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MARKET DYNAMICS
- Market background
- Over four in five have a smart home device at home
- Consumers are increasingly knowledgeable about AI
- Graph 8: knowledge of AI, 2023 and 2024
- AI accelerates innovations…
- …amplified by the increased integration of UWB into smart home devices
- Matter connectivity standard increasingly blurs the interoperability gap
- Impact of US trade disruption for the smart home market
- Market drivers
- Wages have continued to rise ahead of prices
- Graph 9: real wage growth, annual % in wage growth vs inflation, 2020-25
- Housing market rebounds
- Graph 10: number of property residential transactions with a value of over £40,000 completed in the UK, 2019-25
- Consumer sentiment: a cautious recovery continues
- Graph 11: the financial wellbeing index, 2017-25
- Households are cautiously positive about the prospect of their finances
- Graph 12: the financial confidence index, 2017-25
- Brits continue to be cautious with their spending in 2025
- Graph 13: consumer spending expectations for 2025 compared to 2024, 2025
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WHAT CONSUMERS WANT AND WHY
- Technology products at home
- Nearly nine in 10 have some form of smart home device in the household
- Younger shoppers take the lead in adoption
- Graph 14: technology products at home – NET, by age, 2025
- Smart TVs remain the most popular device
- Graph 15: technology products at home, 2025
- Home security is another key area
- Graph 16: home security products at home, by financial situation, 2025
- Smart white goods make further inroads
- Ways to interact with smart home devices
- Over three quarters control their smart home devices
- Apps are the most popular way to control devices
- Graph 17: methods to control smart home devices, by age, 2025
- Device control grows with number of devices
- Graph 18: methods to control smart home devices, by number of device types, 2025
- Priorities when buying smart home devices
- Affordability is placed at the forefront
- Graph 19: most important factors when buying a smart home device, 2025
- The role of affordability increases with age
- Graph 20: most important factors when buying a smart home device, by age, 2025
- Lower cost options attract more people to the market
- Energy concerns continue to be felt by many
- Leveraging AI to optimise energy consumption
- The need to prove how personal data is protected
- Latest features are not the priority
- Attitudes towards smart home technology scenarios
- Adaptive entertainment systems hold strong appeal among younger audiences
- Graph 21: attitudes towards ‘Entertainment systems being able to adapt to their surroundings (eg smart TV automatically adjusts brightness, sound)’, by age, 2025
- Immersive home entertainment experiences
- Make health tech more inclusive
- Graph 22: attitudes towards ‘Smart devices working together to provide health advice (eg smartwatch and smart fridge using physical activity and food intake to create nutrition plan)’, by age, 2025
- AI health advice needs to be easy to follow
- Graph 23: challenges in maintaining health and wellness at home, by age, 2024
- The majority feel positive about virtual assistants adding ease to daily life…
- …but enthusiasm is mainly restricted to younger adults
- Graph 24: attitudes towards virtual assistant scenarios, by age, 2025
- Attitudes and behaviours towards smart home technology
- Growing frustration in getting devices to work together
- Graph 25: attitudes and behaviours towards smart home devices – device usability, 2025
- The need to assist decision-making process
- Graph 26: agreement with ‘I find it hard to know which smart home devices could be useful to me’, 2025
- The value of smart home devices is appreciated
- Convenience is the key driver for upgrades
- Graph 27: most important factors for making updates to the home, 2024
- Engaged users are keen to add more devices to their homes
- Graph 28: agreement with ‘An improvement in my finances would encourage me to spend more on smart home devices’, by number of devices owned, 2025
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INNOVATION AND MARKETING TRENDS
- Launch activity and innovation
- Streamlining device control
- The world’s first smart lock with UWB
- AI smart mirror aims to be a digital PT
- Doublepoint launches free Apple Watch app to control devices with hand gestures
- LG promotes the meaningful experiences that AI can bring about
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APPENDIX
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Consumer research methodology
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