Smart homes market seen topping $311B by 2031

Mordor Intelligence says the smart homes market is set to nearly double from 2026 to 2031 as demand grows for connected devices, energy management and remote monitoring. North America remains the largest regional market, while interoperability standards and broader broadband access are helping speed adoption.

Why it matters: - The smart homes market is moving from early adoption to broader household use as consumers buy connected devices for security, energy savings, convenience and automation. - The market’s growth points to rising demand for products and platforms that can link appliances, lighting, security and energy systems across the home. - North America already holds the largest regional share, making it the key market to watch for near-term product launches and platform competition.

What happened: - Mordor Intelligence projects the smart homes market will rise from $164.13 billion in 2026 to $311.22 billion by 2031. - The research firm said the market will grow at a 13.65% compound annual growth rate during the 2026-2031 forecast period. - The report was released from Hyderabad, Telangana, India, on Nov. 10, 2026.

The details: - Connected devices are gaining traction as homeowners look to improve residential security, energy efficiency, convenience and home automation. - Broadband expansion and wider 5G access are strengthening the infrastructure needed for connected homes. - Matter is reducing compatibility barriers between devices from different manufacturers. - Apple, Google, Samsung and Amazon support the standard, which is designed to let devices work across multiple ecosystems. - Thread-based connectivity and simpler device setup are reducing reliance on proprietary hubs. - Government incentives for heat pumps, battery storage and residential electrification are improving the economics of adoption. - Utility demand-response programs are also encouraging consumers to connect appliances to energy management systems. - Smart-home categories covered in the report include consumer electronics, access control and security, lighting, energy management, HVAC and climate control, controllers and hubs, smart-home healthcare and smart kitchen products. - The report also breaks the market down by housing type, installation type, sales channel, connectivity technology and geography. - Mordor Intelligence says the market is moderately fragmented, with competition shaped by interoperability, cybersecurity, AI-enabled automation, energy management and subscription services. - Amazon, Google and Apple compete through connected devices and platforms. - Samsung competes through SmartThings and interoperable home automation. - Schneider Electric, ABB, Honeywell and Siemens are focused on residential automation, energy management and connected building technologies. - LG Electronics, Signify, ADT and Arlo also participate through appliances, lighting and security products.

Between the lines: - The growth story is shifting from single-device sales to connected ecosystems, where interoperability and software matter as much as hardware. - Energy management is becoming a bigger buying trigger as homeowners respond to higher electrification and utility programs. - The report’s emphasis on Matter suggests the industry sees reduced fragmentation as a key unlock for mainstream adoption. - The competitive set shows smart homes is no longer just a consumer gadget category; it is increasingly tied to utilities, building systems and home energy infrastructure.

What’s next: - Mordor Intelligence expects North America to stay a major market, supported by broadband access, established tech ecosystems and government incentives. - Asia-Pacific is emerging as a growth engine, led by China and India and supported by lower-cost ecosystems from regional manufacturers. - Europe’s market is expected to keep benefiting from energy-efficiency policies and stricter data-protection rules. - The Middle East and parts of Africa are gaining traction through smart city investment, mobile connectivity and solar-powered devices. - ABB’s recent moves illustrate how major industrial and electrical companies are expanding deeper into home energy management and wireless automation.

The bottom line: - Smart homes are becoming a mainstream category, and the next wave of growth will likely come from interoperable devices, energy management and ecosystem-driven platforms.