15+ Incredible Smart Home Statistics To Know in 2023

As a consultant who assists small and medium businesses daily, I‘ve seen firsthand the explosion of smart home technology over the past few years. What used to be a novelty is now becoming mainstream, with over 60 million US households adopting smart devices.

But what is driving this smart home revolution? As an entrepreneur, understanding consumer technology trends is key to spotting new business opportunities. That‘s why I dug into the numbers to uncover the most illuminating smart home statistics for 2023.

Below I‘ll highlight over 15 compelling stats on the growth, adoption, attitudes, and future of smart homes. I‘ll also provide my analysis as a veteran small business consultant on what these trends mean for entrepreneurs. Let‘s dive in!

Smart Home Growth Is Accelerating

  • 63 million US households now have at least one smart home device, up 10% from 2022 and nearly double from 33 million households in 2018.^[1]
  • Globally, there are now over 300 million smart homes. This is up from 141 million in 2017 and 222 million in 2020.^[2]
  • The US leads smart home adoption, but it is growing fastest in Asia and Europe, especially China, India, and the UK.^[2]
  • The global smart home market is projected to grow at a 13% CAGR, reaching $138 billion by 2028 up from $85 billion in 2021.^[3]

As an entrepreneur, it‘s clear the smart home trend is still in its early innings. Substantial growth opportunities remain both domestically and globally as adoption spreads. I advise my small business clients to closely track smart home developments to identify promising new products or services.

Smart Speakers and Voice Assistants Lead the Way

  • Smart speakers make up the largest device category with 78 million US households owning one. Amazon Echo has 63% market share.^[1]
  • 55% of smart speaker owners use them daily. They appreciate the convenience and accessibility.^[4]
  • Voice assistant usage is even higher, with 52% of Americans using voice search monthly via smart speakers or smartphones.^[5]
  • Google Assistant is the most widely used voice AI at 43%, compared to Amazon Alexa at 28% and Apple Siri at 17%.^[6]

Given their popularity, developing skills/actions for smart speakers could be a lucrative avenue for entrepreneurs. But with Google dominating, make sure to design for that platform first.

Younger Generations Are Driving Adoption

  • Households with residents under 55 years old make up 75% of smart home device users.^[7]
  • The 18-34 demographic has the highest adoption at 40%. They find smart homes align with their tech-savvy lifestyles.^[7]
  • Meanwhile, just 25% of users are 55 and older. Many find smart devices too complicated.

As a small business owner, targeting smart home products toward millennials and Gen Z could be a smart strategy. But improving ease of use could open up older demographics.

The Top Purchase Motivators Are Security, Convenience, and Savings

  • 63% buy smart devices primarily for security purposes like cameras, alarms, and smart locks. Peace of mind is a major selling point.^[8]
  • 57% say smart products help them save time on daily tasks like cleaning. That equates to over 180 hours per year of saved time.^[9]
  • The average household saves $1,180 per year on utility bills through efficient smart devices. Energy savings is a big motivator.^[10]
  • 77% say smart products make life more convenient. Features like voice commands and automation increase accessibility.^[11]

As an entrepreneur, innovations that improve home security, simplify tasks, reduce energy use, or offer accessibility would align well with consumer motivators.

Smart Home Data Security Concerns Limit Adoption

  • Despite liking the technology overall, 63% of smart home device owners worry about data privacy and hacking risks.^[12]
  • Over one-third of consumers say data security concerns are preventing them from purchasing smart devices.^[13]
  • However, consumers are getting more comfortable as companies address vulnerabilities. Only 22% said security concerns increased over the past year.^[14]

Cybersecurity should be a top priority for smart home providers. Making protection and encryption more robust can help attract new consumers.

The Market Remains Fragmented but Integration Is Improving

  • There are still over 400 smart home brands making a wide variety of disaggregated products and platforms.^[15]
  • However, new solutions are emerging to consolidate control like Devices360, which links devices across brands for whole-home automation.
  • Similarly, 60% of consumers say compatibility across devices and platforms is a top priority in adoption.^[16]

While a dizzying array of smart home gadgets exists, consumers ultimately want holistic solutions. Companies that can integrate cross-brand devices into one system will gain an advantage.

Smart Homes Are Becoming a Must for Homebuyers

  • 81% of recent homebuyers said they would prefer purchasing a home with smart features rather than without.^[8]
  • 73% of prospective homebuyers said they would be willing to pay more for a home with smart capabilities.^[17]
  • Homebuilders are taking notice. Lennar, one of the nation‘s largest homebuilders, now equips new homes with smart hubs and devices like video doorbells, smart locks, and leak detectors.^[18]

The real estate sector presents a major opportunity as smart homes shift from luxury to expected baseline feature. Retrofitting older homes could be especially lucrative.

Key Takeaways for Entrepreneurs

In conclusion, as a business consultant focused on small and medium enterprises, my key recommendations based on these smart home statistics are:

  • Focus on security, convenience/accessibility, and energy-saving in your offerings. These align with consumer motivators.
  • Make ease of use and data protection priorities – especially for older demographics.
  • Explore opportunities in real estate technology and home services related to smart home integration and retrofitting.
  • Look for ways to consolidate the fragmented market through interoperability and integrated platforms.

With the continued vigor of the smart home market, ample prospects exist for ambitious entrepreneurs willing to ride this technological wave. Monitoring adoption patterns and consumer attitudes will be critical in identifying where to direct your efforts.

Sources

  1. Oberlo
  2. Statista
  3. Mordor Intelligence
  4. Voicebot.ai
  5. Blogging Wizard
  6. Voicebot.ai
  7. Smart Energy Consumer Collaborative
  8. Today‘s Homeowner
  9. Alarms.org
  10. Cepro
  11. Techjury
  12. Smart Energy Consumer Collaborative
  13. Statista
  14. Parks Associates
  15. IOT For All
  16. PriceWaterhouseCoopers
  17. Consumer Technology Association
  18. Forbes