The global smart home hardware market was valued at USD 61.73 billion in 2022 and is projected to reach USD 180.85 billion by 2030, expanding at a CAGR of 14.3% from 2023 to 2030. Market growth is primarily driven by the increasing availability of affordable smart home devices and the expanding ecosystem of compatible and interoperable products.
Historically, smart home solutions were costly and often required professional installation, limiting adoption among average homeowners. However, continuous technological advancements, economies of scale, and the entry of new market participants have significantly reduced device costs. As a result, smart home hardware has become more accessible to a broader consumer base.
The growing number of device-compatible platforms has further accelerated adoption by enabling homeowners to customize smart home ecosystems according to their preferences. Consumers can now select from a wide range of devices compatible with popular voice assistants such as Amazon Alexa and Google Assistant, allowing seamless voice-based control of home environments.
Rapid adoption of advanced technologies—including the Internet of Things (IoT), artificial intelligence (AI), smart voice recognition, blockchain, and connected ecosystems—has had a substantial impact on market expansion. These technologies enable smart home devices to recognize user commands, deliver personalized responses, and operate intelligently. Increased IoT penetration across both developed and developing regions has further fueled market growth, while enhanced device interconnectivity continues to generate strong demand for smart home hardware solutions.
Key Market Trends & Insights
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Market Size & Forecast
Competitive Landscape
The smart home hardware market is highly competitive, with major players continuously launching new products and enhancing existing offerings to strengthen their market positions. While new product introductions remain important, product development and upgrades are the most widely adopted strategies. These initiatives are often supported by market expansion, mergers and acquisitions, partnerships, collaborations, and contractual agreements.
For example, in January 2022, Samsung Electronics Co., Ltd. expanded its presence in the U.S. market by partnering with Logical Buildings, Constellation, and Oracle Utilities to address the growing demand for smart energy management solutions. Through collaborations with energy providers, sustainability platforms, and energy management systems, Samsung aims to help consumers make informed decisions about energy usage while reducing environmental impact.
Pricing strategies are also being used to maintain competitive advantage. In April 2023, Amazon reduced prices on its Fire TV Stick lineup, with select models priced as low as GBP 15. The device, known for its speed and efficiency, is retailed by Amazon as well as other major sellers such as Argos, Currys, and John Lewis, highlighting aggressive pricing tactics to drive adoption and market penetration.
Key Players Include:
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Conclusion
The smart home hardware market is poised for sustained growth, driven by declining device costs, rapid technological innovation, and increasing consumer demand for connected, intelligent living environments. As interoperability improves and advanced technologies such as AI and IoT become more deeply integrated into everyday home systems, smart home hardware is expected to play a central role in shaping the future of residential automation and energy-efficient living worldwide.