Automated Home Spending to Surpass $200 Billion in 2028

The automated home market is rapidly evolving, with consumers increasingly adopting devices that enhance security, energy efficiency, and convenience, according to GlobalData. Against this backdrop, global spending on automated home devices is set to grow at a compound annual growth rate (CAGR) of 11% from $119.5 billion in 2023 to $200.8 billion in 2028.

GlobalData’s report reveals that the top three automated home sub-categories by device revenue are smart appliances, smart speakers, and smart security. These three accounted for 34%, 28%, and 25% of the total market in 2023, respectively. Amazon, Google, and Xiaomi are the leading companies shaping the market. The smart appliances sub-category will continue to hold the largest market share over the next five years as its growth outstrips both smart speakers and smart security.

“The smart home landscape is populated by a mix of established tech giants and innovative newcomers,” said Shabnam Pervez, Strategic Intelligence Analyst at GlobalData. The foundation of Amazon’s automated home business is its Echo range of smart speakers. The company has built on that with acquisitions, including spending $1 billion on smart doorbell manufacturer Ring. Google, with its Nest ecosystem of automated home devices, is also a market leader. Alibaba and Xiaomi dominate the Chinese market.

“The smart home market is dynamic and constantly evolving. As technology advances and consumer adoption accelerates, devices will continue becoming more intelligent, integrated, and accessible. The future of living is smart, and it is happening now,” concluded Pervez.