More than 190 million European and North American homes will be smart in 2029, according to IoT analyst firm Berg Insight.

The number of smart homes in Europe and North America reached 139.4 million in 2024. North America is the leading market in terms of penetration with 45 per cent of all households in the region having at least one smart home product or system at the end of the year, which equals 66.7 million smart homes.

Market growth is expected to continue in the next five years. By 2029, Berg estimates that about 90.9 million homes in North America will be smart, equal to about 59 per cent of all homes in the region.

The European market is still somewhat behind North America in terms of market penetration. There was a total of 72.7 million smart homes in Europe at the end of 2024, equalling a market penetration of 31 per cent. The number of smart homes in the region is forecasted to reach about 102.8 million at the end of 2029, representing a market penetration close to 42 per cent.

The most popular smart home products include thermostats, light bulbs, security cameras, door locks and speakers. These products have sold in the hundreds of millions and are marketed by incumbent OEMs such as Signify, Resideo, Danfoss, Chamberlain, Schlage, Assa Abloy and iRobot and newer entrants such as Ecobee, Sonos, Arlo, Nuki, Mysa, Ikea, Wyze Labs and SharkNinja.

The market for whole-home systems is served mainly by traditional home automation specialists, home security providers, telecom operators and DIY providers.

In North America, interactive home security systems have emerged as one of the most common types of smart home systems. The largest home security providers include ADT, Vivint, SimpliSafe, Comcast and Telus. Leading home automation companies in the region include Control4, Crestron and Savant Systems.

In Europe, traditional home automation systems and DIY options are more common as whole-home systems, although large home security providers in the region account for an increasing share of the market. Shelly, EQ-3, Verisure, Somfy and Loxone are estimated to be the leading providers of whole-home systems in the region. The installed base of whole-home systems in Europe and North America amounted to 46.4 million systems and 64.4 million systems, respectively, at the end of 2024.

The smart home market grew in 2024 and the outlook for the market in the coming years is positive.

“Smart home product categories that provide tangible benefits and value for households are anticipated to grow faster than segments where the value proposition is weak,” said Martin Apelgren, principal analyst at Berg Insight.

Security cameras, smart heating controls and floor cleaning robots are examples of products that provide enhanced safety, cost-savings and time-savings, respectively, which are valuable for consumers. The introduction of AI-based products is also anticipated to drive market demand in some product categories.

“AI is likely to be a transformative technology for the smart home industry with a range of new, valuable options for homeowners to be introduced during the coming years,” said Apelgren.

Download the report brochure at media.berginsight.com/2025/10/28151819/bi-sh12-ps.pdf.