Home Automation

Industry Overview - February 2026

Smart Home demand held its ground in 2025, even as tariff‑driven cost pressures and broader economic uncertainty impacted consumer spending. The number of connected households continued to climb, thanks largely to strong interest in home security products. Cameras and video doorbells remained top performers, supported by wide consumer awareness and aggressive promotional activity. Newer categories—particularly smart locks—also gained momentum as shoppers encountered a wider range of options.

Smart Home Ownership & Usage Report

Two major trends are poised to accelerate Smart Home adoption: device subscriptions and AI-powered features. Subscriptions for premium security features remain steady at around 41%, but consumers are spending more over time as they add devices to their plan. Features such as visual intelligence, smart notifications, and unlimited recording are increasingly valued.