The smart home market stands at a pivotal moment, shaped by two contrasting forces. On one side, economic uncertainty is prompting consumers to scale back on non-essential tech spending. On…
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Technology
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US Future of Tech in the Home Market Report 2025
"The smart home industry's success depends on bridging the gap between innovation and everyday practicality."
US Smart Home Industry – Future Trends and Insights
The smart home market stands at a pivotal moment, shaped by two contrasting forces. On one side, economic uncertainty is prompting consumers to scale back on non-essential tech spending. On the other, there is a growing appetite for the convenience and security provided by AI-enhanced devices.
Adoption of smart home technology is relatively widespread, with 79% of consumers owning at least one smart home device. However, many are not leveraging these technologies to their full potential, with 58% of users avoiding features they find too complex.
The outlook for the US smart home industry remains promising. A notable 66% of consumers believe that smart technology will be a standard feature in newly built homes by 2026, underscoring its increasing importance in modern living.
Consumers continue to prioritize safer homes, lower energy costs, and simpler controls, but trust in data privacy is paramount. Brands that focus on interoperability, predictive maintenance, and localized data processing will gain a competitive edge.
As AI accelerates energy demand and strains the grid, smart home technology will play a critical role in distributed energy management and virtual power plant strategies. To thrive, brands must align with consumer needs by delivering accessible, practical solutions that provide transparent security, reliable support, and meaningful everyday value.
This Report Looks at the Following Areas:
Smart home adoption and purchase intent
Consumer outlook on intuitive home technology
How consumers control and interact with smart devices
What consumers want automated
Key areas of the home for smart tech integration
Expanding the smart home ecosystem: vehicles, outdoor security, and pet care
Consumer expectations and priorities for smart home technology
Barriers to adoption
Collapse All
EXECUTIVE SUMMARY
What you need to know
Outlook for tech in the home
Opportunities
Use smart TVs as the gateway to the connected home
Reframe smart home technology as practical and accessible
Position AI-driven devices as tools to free up time for users
THE MARKET
Market context
As housing affordability continues to fall, homeownership rates in the US decline
Graph 1: Housing Affordability Index (HAI), 2019-25
Graph 2: homeownership rate, 2019-25
Trump’s tariffs force the industry to rethink costs
Legislation could require manufacturers to disclose device lifespans
Smart home solutions could offset the growing energy demands of AI data centers
THE CONSUMER
Smart home adoption and consumer interest
Smart TVs lead the pack in home tech adoption
Expand smart home appeal through the power of smart TVs
Graph 3: smart home device ownership, 2025
Men embrace niche tech, potential to broaden adoption
Graph 4: smart home device ownership, by gender, 2025
Consumers gravitate towards affordable smart home devices
Intuitive and reactive smart home systems
Homes of the future will be designed to think and respond intuitively
Consumers are optimistic about reactive technology, though 55+ consumers may need some convincing
Graph 5: positive outlook towards future scenarios related to automated adjustments, by age, 2025
Apple’s approach to intuitive and emotionally aware home tech
Highlight the dependability and user-focused design of new device management solutions
Graph 6: positive outlook towards future scenarios related to device management, by age, 2025
Position smarter control methods as a way to reduce smartphone dependency
Graph 7: how consumers control their smart home devices, by age, 2025
Empower parents with hands-free solutions
Graph 8: how consumers control their smart home devices, moms vs dads, 2025
Unlocking greater autonomy through advanced smart home solutions
Task automation preferences
Consumers 18-54 see potential in home automation
Graph 9: positive outlook towards future scenarios related to task automation, by age, 2025
Bathroom cleaning tops the list of dreaded tasks
Older consumers want relief from physically demanding chores
Graph 10: most disliked household chores [NET any rank], by age, 2025
Turning chore aversion into automation opportunities
Graph 11: chores consumers would most like to see automated, by age, 2025
One size doesn’t fit all: customize automation for every consumer
Household robots are becoming a reality
Despite a relatively positive outlook, consumers are cautious about over-reliance
Expanding smart tech across the home and beyond
Consumers prioritize smart tech for living rooms and kitchens…
Graph 12: areas consumers would most like smart home tech added, by age, 2025
…although consumer priorities vary
As homeownership declines tech devices must evolve to meet renter demands
Graph 13: areas consumers would most like smart home tech added (select), by residence status, 2025
Position vehicles as part of the home ecosystem
Leverage consumer demand for security to expand smart tech outdoors
Tailor AI-powered security systems to fit the unique needs of urban and rural consumers
Graph 14: positive outlook towards AI-powered security systems that detect human movement and differentiate between regular activity (eg mail delivery, runners) and potential threats (eg break-ins, package theft), by area, 2025
Position smart home tech as a solution for pet owners’ needs
Graph 15: positive outlook on advanced algorithms based on machine learning that can evaluate voice patterns and give accurate appraisal of pet emotions, by age, 2025
What consumers want from technology
Align smart home features with consumer expectations
Graph 16: factors considered most important to the widespread adoption of smart home devices, by age, 2025
Recognize that drivers of adoption are nuanced
Demonstrate how smart home tech pays off in the long run
Predictive maintenance is essential for the next generation of homeowners
Graph 17: positive outlook on smart home appliances with predictive maintenance (eg monitor usage patterns, detect issues before they become problems and even schedule their own maintenance), by age and residence status, 2025
Locally owned data solutions can build trust with consumers
Appeal to men 35-54 with AI that feels more human
Barriers to adoption
While the future of smart homes looks promising, the industry still has a long way to go
Reframe devices as practical, not luxurious
Graph 18: barriers to adoption attitudes (% agree), by age, 2025
Widespread adoption hinges on competitive functionality
Smart devices can make homes more accessible
Smart homes can help consumers age in place
Knowledge gaps deter even the most capable smart home shoppers
Graph 19: “I’d be more interested in purchasing smart home products if I could hire someone to help with setup or fixes” (% agree), by financial situation, 2025
Sometimes the smartest tech is the simplest
INNOVATION AND MARKETING
Ring unveils AI tool to find lost pets
Google devices get a conversational AI upgrade
Say goodbye to keys and hello to facial recognition for unlocking your door
Laundry technology moves closer to automation
Samsung aims to redefine what a refrigerator can do
Amazon Astro strives to be the all-in-one smart home assistant
Arlo brings AI to security cameras to streamline user experience
APPENDIX
Consumer research questions
Consumer research methodology
Consumer qualitative research methodology
Generations
Abbreviations and terms
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