Home Automation System Market Size, Share, By Components (Hardware, Software & Solutions, and Services), Technology (Wired Technology, Wireless Technology, Power Line Communication, and Others), Application (Lighting Control, Security and Access Control, HVAC Control, Entertainment, and Others), Distribution Channel (Online and Offline), and Region - Trends, Analysis, and Forecast till 2035

Report Code: PMI574525 | Publish Date: January 2025 | No. of Pages: 187

Home Automation System Market Overview

  • Projections indicate that the market will surpass USD 98.1 billion by 2035.
  • The home automation system market size was valued at USD 60.2 billion in 2024.
  • It is advancing with a CAGR of 5.5%.

Home automation system refers to a network of devices that enable the control and management of various home functions through interconnected technology. This system integrates hardware and software components that allow users to monitor and control appliances, such as lighting, security cameras, heating, and cooling systems remotely. Also, the rise of IoT has been pivotal in transforming traditional homes into smart homes, providing enhanced convenience and energy efficiency. Further, the market is experiencing rapid growth, driven by advancements in technology and increasing consumer demand for smart home solutions.

For instance, in May 2024, Google has announced that it’s opening up API access to its Google Home smart home platform. This means that any app maker smart home-related or not can access the over 600 million devices connected to Google Home and tap into the Google Home automation engine to create smart solutions for their users inside their own app. The Home APIs can access any Matter device or Works with Google Home device and allows developers to build their own experiences using Google Home devices and automations into their apps on both iOS and Android.

Key Takeaways:

  • North America currently dominates the market with ~39% share, driven by high adoption rates and awareness of smart home technologies.
  • The wireless technology segment is anticipated to lead in growth, attributed to its advanced features and capabilities.

Home Automation System Market Drivers & Restraints

Key Drivers of Target Market:

Growing Convenience Demand Quickens the Target Market

Consumers are seeking solutions that simplify daily tasks which leads to rise in the adoption of smart home technologies.

  • For instance, in May 2024, South Korean technology giant LG launched AI-powered smart TVs and expects a 25-30% growth this year, driven by the trend of Premiumization in the Indian TV market, where customers are eyeing newer technologies and larger screen sizes. To meet the increasing demand and strengthen its pole position in the Indian market, LG has launched a new range of AI-driven smart TVs. Comprising 55 new models, LG’s Next Generation of AI TVs will be available in sizes ranging from 43 inches to 97 inches. 

Targeted Market Growth is Expected to be Supported by Cost Savings and Energy Efficiency

The adoption of home automation systems not only leads to significant cost savings for consumers but also promotes greater energy efficiency, contributing positively to environmental sustainability. The ability of various smart devices to work together enhances their efficiency. For example, integrating smart plugs, lights, and thermostats allows for comprehensive energy management tailored to individual lifestyles, further maximizing savings.

  • For instance, in January 2023, Shelly, a division of Allterco Robotics, Ltd, announced the launch of 8 new smart home automation devices at the Consumer Electronics Show (CES). One of the fastest growing IoT brands in the world, Shelly has added advanced functionality to their newest devices while remaining true to the brand's core benefits of affordability, interoperability, accessibility, energy efficiency, and ease of installation.  

Restraints:

Compatibility and Complexity Problems May Limit the Growth of the Target Market

Integrating various devices from different manufacturers can lead to compatibility challenges, deterring potential buyers. A fragmented smart home setup leads to confusion requires users to remember multiple apps and systems for control which complicates the user experience rather than simplifying.

  • Counterbalance Statements: some manufacturers are prioritizing compatibility across platforms allowing users to manage devices from different brands through a single interface. This approach reduces complexity and enhances user experience by providing centralized control. 

Opportunities:

The Development of Mobile Applications is the Primary Method for Focused Market Expansion:

  • There is a significant potential in developing mobile applications that serves as a central hubs for controlling various home automation devices. This can simply user interaction and improve overall system functionality.
  • For instance, in September 2024, smart home device manufacturer Aqara is introducing a number of new smart home products and smart home capabilities. One of the major products introduced is Garage Door Controller T2 Kit which control up to two garage doors. It allows you to open or close the garage doors using geofencing (which opens the door when you are nearby), voice commands, mobile apps, and automated routines. The wireless sensor provides real-time updates on whether the garage door is open or closed.

Home Automation System Market Segmentations & Regional Insights

Components, technology, application, distribution channel, and region are the segments in which the home automation system market is divided.

Components:

Home automation system market by components is categorized into hardware (security systems, smart lighting, home appliances, entertainment systems, and others), software & solutions, and services (consulting, installation, support and maintenance, and others). The hardware segment holds a dominant home automation system market share, which holds approx. 58.1%, due to the increasing demand for integrated and advanced home systems has led to a surge in the adoption of smart home devices. 

Technology:

By technology, the home automation system market is segmented into wired technology, wireless technology, power line communication, and others. Wireless technology is the category with the largest intended market share and it is increasingly favored due to its flexibility, ease of installation, and also ability to seamlessly connect various smart devices without extensive wiring.

  • For instance, in September 2024, ABB India, a global leader in electrification and automation, has announced the launch of ABB-free@home, a Smart Home automation system with enhanced interoperability. This cutting-edge and comprehensive wireless home automation solution is designed to enhance comfort, security, and energy efficiency for the residential segment. It allows users to integrate and control additional elements such as white good appliances, third party devices and EV chargers, through a single interface.

Application:

By Application, the target market is segmented into lighting control, security and access control, HVAC control, entertainment, and others. The security and access control segment dominates the home automation system market share as the rising demand for advanced security solutions, such as biometric verification and motion detection boosts the expansion for home automation technologies.

  • For instance, in September 2024, Bull Products has announced the launch of its new workforce management and access control system, SITEGATE, designed for the construction industry and development projects. SITEGATE’s platform integrates with Bull Products’ existing SITENET and SITEPROTECT wireless fire detection and alarm systems, offering a comprehensive solution for managing site operations. SITEGATE is fully wireless and provides multiple access control methods, including facial recognition, RFID cards, and QR code readers.

Distribution Channel:

By distribution channel, the home automation system market is segmented into online, and offline. The online segment is the one with the largest target market share with the rapid rise of e-commerce and digitalization, particularly in developing countries. The online distribution channel includes sales through manufacturer websites and major online retailers, which are becoming increasingly popular among consumers, especially millennial and younger demographics.

Region:

Geographically, the market is studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This region is recognized as the most advanced smart home market globally, with a substantial number of multifunction or whole-home systems installed. This region's leadership is attributed to high consumer awareness, technological advancements, and a strong presence of major players in the home automation industry.

  • For instance, in May 2019, Control4 Corporation, global provider of smart home solutions, has announced Control4 Smart Home OS 3. Control4 Smart Home OS 3 is designed to unify hundreds of connected devices within the home, control them all from a single platform, delivering the personalization that homeowners want, and facilitating the professional support that smart home technology needs.

Asia Pacific: The market growth for home automation systems in this region is expected to grow rapidly due to factors such as urbanization, technology breakthroughs, and shifting customer tastes. The target market is anticipated to grow in the upcoming years as long as businesses keep coming up with new ideas and modifying their products to suit various local demands across the region.

Home Automation System Market Report Scope:

Attribute

Details

Market Size 2025

USD 62.9 Billion 

Projected Market Size 2035

USD 98.1 Billion

CAGR Growth Rate

5.5% (2025-2035)

Base year for estimation

2024

Forecast period

2025 – 2035

Market representation

Revenue in USD Billion & CAGR from 2025 to 2035

Regional scope

North America - U.S. and Canada

Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe

Asia Pacific – China, India Japan, Australia Indonesia Malaysia, South Korea, and Rest of Asia-Pacific

Latin America - Brazil, Mexico, Argentina, and Rest of Latin America

Middle East & Africa – GCC, Israel South Africa, and Rest of Middle East & Africa

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Components:

  • Hardware
  • Security Systems
  • Smart Lighting
  • Home Appliances
  • Entertainment Systems
  • Others
  • Software & Solutions
  • Services
  • Consulting
  • Installation
  • Support and Maintenance
  • Others

By Technology:

  • Wired Technology
  • Wireless Technology
  • Power Line Communication
  • Others

By Application:

  • Lighting Control
  • Security and Access Control
  • HVAC Control
  • Entertainment
  • Others

By Distribution Channel:

  • Online
  • Offline

By Region:

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • U.K.
    • France
    • Russia
    • Italy
    • Spain
    • Netherlands
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • Indonesia
    • Malaysia
    • South Korea
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Argentina
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • Israel
    • South Africa
    • Rest of Middle East & Africa

Home Automation System Market Competitive Landscape & Key Players

Samsung Electronics Co., Ltd., LG Electronics Inc., Amazon.com, Inc., and others are some of the prominent participants in the growing home automation system market. The market for home automation systems is extremely competitive, fueled by rising consumer demand for convenience and energy efficiency as well as the increased use of smart technology. Further, to increase their market position, major firms in the industry concentrate on innovation, strategic agreements, and acquisitions.

For instance, in August 2024, Crestron Electronics, the global leader in home automation, announces the newest additions to the Crestron Home OS 4 that will be unveiled at CEDIA Expo 2024. Crestron Home OS is built with dealers and homeowners equally in mind. The latest updates demonstrate that commitment with new features that add even more customization options and further open the ecosystem of devices while introducing new tools and resources that promote businesses and simplify management.

List of Key Players in the Market:

  • Amazon.com, Inc.
  • Samsung Electronics Co., Ltd.
  • LG Electronics Inc.
  • Philips
  • Schneider Electric
  • Control4
  • Crestron
  • Vivint
  • Honeywell International Inc.
  • Sony Group Corporation
  • August Home
  • HomeSeer
  • Savant
  • Z-Wave Alliance
  • GVTC

Home Automation System Market Recent News

  • In January 2025, LG Electronics (LG) unveiled its 2025 OLED evo lineup, highlighting a range of advanced TV offerings, including the world’s first true wireless OLED evo M5, and OLED evo G5 models. With LG’s latest α (Alpha) 11 AI processor Gen21 at its core, the latest OLED evo models present unparalleled OLED picture quality with impeccable blacks, exceptional brightness and advanced processing capabilities. Powered by AI-driven personalization, the LG OLED evo offers a customized experience tailored to each user and showcases the pinnacle of OLED innovation for an elevated home entertainment experience.
  • In December 2024, LG Electronics (LG) has fully opened the Application Programming Interface (API) of its smart home platform, LG ThinQ, enabling developers to easily create smart spaces with LG appliances. The LG ThinQ API is divided into two categories: the ThinQ API for individual users and the ThinQ Business API for corporate partners. The ThinQ API allows for remote control of LG devices installed in homes or buildings and facilitates integration with various platforms.
  • In June 2024, ABB launches the new ReliaHome Smart Panel - its first residential energy management software platform in these markets. ReliaHome Smart Panel offers customers simplified stock and inventory management. Enabling energy optimization, circuit scheduling, and real-time control in one universally compatible package, the panel is suitable for new and retrofit installations.

Analyst View for Home Automation System market:

Home automation system market is at a pivotal point of growth which is supported by technological advancements, changing consumer behaviors, and also increasing security needs. As smart technologies continue to develop and become more integrated into daily life, the targeted market growth is anticipated to continue in the years to come.

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Home Automation System Market Company Profile

Company Name

LG Electronics Inc.

Headquarter

Seoul, South Korea

CEO

William Cho

Employee Count (2024)

58,500 Employees

FAQs

Home Automation System market Size was valued at USD 62.9 Billion in 2025 and is expected to reach USD 98.1 Billion by 2035 growing at a CAGR of 5.5%.

The market is divided into several segments, including component, technology, application, distribution channel, and region.

North America is expected to dominate the target market from North America, Asia Pacific, Europe, Latin America, and the Middle East & Africa.

The key players operating the home automation system market include Amazon.com, Inc., Samsung Electronics Co., Ltd., LG Electronics Inc., Philips, Schneider Electric, Control4, Crestron, Vivint, Honeywell International Inc., Sony Group Corporation, August Home, HomeSeer, Savant, Z-Wave Alliance, and GVTC.