Expanded Smart Home User Base in the US: Approx. 13 Million Additional Households join the Market since 2020

In the rapidly expanding smart home market, a staggering 54 million US households now own a smart home device, according to recent statistics. This growth has not gone unnoticed, with Parks Associates releasing a new white paper titled "Smart Home Evolution: Unlocking Value" in partnership with the Connectivity Standards Alliance (CSA).

The white paper delves into the progress of the smart home, highlighting key milestones, emerging consumer demands, and the increasing role of artificial intelligence (AI). Tobin Richardson, President and CEO of the Connectivity Standards Alliance, emphasizes the importance of trust, simplicity, and real-world value in the new phase of the smart home market.

Current trends in the smart home market strongly emphasize AI integration, interoperability, and energy efficiency. AI is increasingly embedded in smart devices to enable intelligent automation such as AI-driven energy management, predictive maintenance, and personalized user experiences. Premium smart homes are adopting fully integrated AI systems to enhance efficiency and convenience, signaling a shift towards more autonomous home ecosystems.

A key trend is the adoption of universal standards like Matter, supported by major platforms, to unify device communication and allow seamless interoperability across brands and product types. The underlying Thread mesh protocol further supports reliable, low-power connectivity among devices without requiring central hubs. This interoperability addresses previous consumer frustrations with fragmented ecosystems and enhances user experience.

Smart thermostats and connected HVAC systems play a vital role, with smart thermostats alone reducing heating and cooling costs by 10–15% and overall smart home systems potentially lowering energy use by up to 30%. The growing consumer focus on sustainability drives demand for energy-optimized homes and prefabricated smart homes that incorporate superior energy efficiency and eco-friendly materials.

New households have distinctly different expectations and needs from early smart home adopters. Since 2020, roughly 13 million new US internet households entered the smart home market, with 38% of buyers now identifying as "Early Majority," up from 20% six years ago.

The market is shifting from early adoption to scaling, with smart homes becoming more mainstream and affordable between 2025 and 2030, leading to wider deployment in both urban and suburban housing. Consumers value convenience and personalization, with 73% of smart homes using voice assistants as the most popular device category.

About 29% of homebuyers would pay a premium for homes equipped with smart technologies, on average $2,600 more. Growing cybersecurity concerns have led to the introduction of certification programs like the Cyber Trust Mark to label secure smart home devices, reflecting rising consumer demand for privacy and safety.

The rise of prefabricated smart homes offers quicker construction, cost savings, and integrated smart tech, addressing inflationary pressures and enhancing sustainable living options.

In summary, the smart home market in 2025 is focused on AI-driven automation, seamless device interoperability via universal standards like Matter and Thread, and energy efficiency improvements, supported by expanding consumer adoption, increasing security awareness, and innovative housing solutions such as prefabricated smart homes.

Jennifer Kent, VP, Research at Parks Associates, stated that as the market moves into its next phase, new layers of value, including integrations/interoperability, intelligence, and the development of services, are needed. Households with children are more likely to recommend smart home products to others, and 65% of smart thermostat owners are willing to allow their smart devices and appliances to share data with each other to better optimize energy use.

Consumers expect connected experiences to work effortlessly and intuitively together in the new phase of the smart home market. Greater intelligence, ease of integration, adjacent service offerings, and quality of service will shape the market going forward and define the competitive edge, according to Jennifer Kent, VP, Research at Parks Associates. However, 52% of smart home device owners who set up a device themselves had difficulty at setup, indicating a need for improved user-friendly setup processes.

Collaborative standards like Matter and forward-looking ones like Aliro, developed by the Connectivity Standards Alliance, are helping the industry and its members unlock sustainable growth, enable meaningful experiences, and deliver on the promise of a more connected home. The shift in the smart home market is critical for reaching broader adoption of individual product categories and achieving greater efficiencies of scale.

Expanded Smart Home User Base in the US: Approx. 13 Million Additional Households join the Market since 2020