Smart Home Hub Market to Expand from $42.6 billion in 2024 to $94.6 billion by 2034, according to predictions
The US Smart Home Hub Market is currently experiencing a rapid growth phase, with projections indicating that it will reach an impressive market size of approximately $94.6 billion by 2034[1]. This represents a significant increase from the 2024 figure of around $42.6 billion, demonstrating a robust Compound Annual Growth Rate (CAGR) of about 8.3% from 2025 through 2034[1].
This growth can be attributed to several key drivers and technologies. Interoperability and central control are critical roles played by smart home hubs, acting as control centres to connect diverse smart devices like lights, thermostats, security cameras, and TVs from different manufacturers and protocols[1]. Wi-Fi technology dominates the connectivity landscape with a 46.2% market share in 2024, due to its broad availability and compatibility with numerous devices[1].
The Matter interoperability standard is increasingly important; it enables seamless communication across brands, boosting ecosystem compatibility and accelerating consumer adoption[3][5]. Voice assistants adoption is a significant growth driver, contributing approximately +2.8% impact on global CAGR forecasts, especially in North America and Europe[5]. Other noteworthy contributors to growth include bundled energy-management programs, decreasing chipset prices, insurance-backed discounts, and emerging generative AI-based contextual automation enabling smarter, adaptive home automation[5].
The market is segmented by Component, Technology, Distribution Channel, and Application. In 2024, the Hardware segment by component had the largest market share[1]. Home Security and Automation led the application segment in 2024 with a 42.1% share[1]. Notable developments in this sector include LG's acquisition of Athom in July 2024 to integrate third-party device connectivity into its ThinQ ecosystem[2]. LG's AI Agent promotes a "Zero Labor Home" concept[2].
Online stores are the leading distribution channel for smart home hubs in the US, favoured for their convenience and broad availability of products[1]. Key players in the market include technology giants and companies specializing in smart home ecosystems, voice assistants, and IoT platforms, particularly those supporting Matter interoperability. These typically include companies like Amazon (Echo/Alexa), Google (Nest), Apple (HomeKit), and other emerging players invested in alliance-driven standards and AI automation[4].
Looking ahead, the US market is poised for continued double-digit growth in smart home hubs driven by increasing consumer adoption, growing use cases related to energy management, security, healthcare, and AI-enhanced automation. Interoperability via standards like Matter and technological advances like generative AI contextual automation will further enhance user experience and market expansion[1]. Government incentives and energy rebate programs also support market growth indirectly by lowering adoption barriers[3].
In conclusion, the US Smart Home Hub Market is experiencing strong growth driven by interoperability-focused technologies, expanding applications in security and automation, and advanced AI integration. The market is expected to nearly double in size over the next decade, making it a dynamic and competitive space.
References: [1] MarketandMarkets (2024). US Smart Home Hub Market - Growth, Trends, and Forecast (2025 - 2034). [online] Available at: https://www.marketsandmarkets.com/Market-Reports/us-smart-home-hub-market-267417086.html [2] LG Electronics (2024). LG Acquires Athom to Expand ThinQ Ecosystem with Third-Party Device Connectivity [online] Available at: https://www.lg.com/us/news/lg-acquires-athom-to-expand-thinq-ecosystem-with-third-party-device-connectivity [3] Zacks Investment Research (2024). Smart Home Hub Market: Growth Factors and Key Trends [online] Available at: https://www.zacks.com/commentary/1786891/smart-home-hub-market-growth-factors-and-key-trends [4] Baker McKenzie (2024). Baker McKenzie advises Haier on its successful completion of USD 775 million acquisition of Carrier's commercial refrigeration business [online] Available at: https://www.bakermckenzie.com/en/news/pressreleases/2024/09/baker-mckenzie-advises-haier-on-its-successful-completion-of-usd-775-million-acquisition-of-carrier-s-commercial-refrigeration-business [5] Grand View Research (2024). Global Smart Home Hub Market Size, Share & Trends Analysis Report By Component (Hardware, Software), By Technology (Wi-Fi, Zigbee, Z-Wave, Bluetooth), By Distribution Channel (Online Stores, Retailers), By Application (Home Security & Automation, Energy Management, Healthcare, Others), And Segment Forecasts, 2022 - 2030 [online] Available at: https://www.grandviewresearch.com/industry-analysis/smart-home-hub-market
- The growth in the US Smart Home Hub Market is largely driven by the finance sector, as the industry's Compound Annual Growth Rate (CAGR) is expected to nearly double from 2025 to 2034, indicating a significant increase in market size.
- The manufacturing industry also plays a crucial role in this growth, with companies like Amazon, Google, Apple, and other emerging players producing smart-home-devices, gadgets, and IoT platforms that support Matter interoperability.
- The home-and-garden sector benefits from the rise of smart home hubs, as application segments like home security and automation show a 42.1% market share in 2024, contributing to the overall market size.
- The lifestyle sector is significantly influenced by technological advancements in the smart home industry, with emerging trends in energy management, security, healthcare, and AI-enhanced automation driving further growth.
