Barb Sheehan
Marketing Manager

Top Trends in Smart Home Technology

….and How to Lean-In and Improve Your Marketing

Nearly every aspect of life has seen the introduction of a “smart” (self-monitoring, analysis, and reporting technology) alternative. At its core, smart technology uses artificial intelligence, machine learning, and big data analysis to provide cognitive awareness to objects that were previously considered inanimate. “Smart home” is an extension of this technology that provides homeowners security, comfort, convenience and energy efficiency by letting them control smart devices, often using an app on their phone or an in-home, networked device.

It is projected that over half of US consumers will adopt smart home technology by 2025. Several key trends are shaping this dynamic technology landscape, each with its own set of implications:

Integration Platforms: Integration platforms like Google Assistant and Amazon Alexa offer integration of such smart devices as thermostats, security systems, appliances, lighting and even entertainment.  They are crucial for providing cohesive smart home experiences, and offers benefits such as added convenience, energy efficiency, enhanced security, and cost savings. This market will only grow as users seek seamless connectivity across their devices.

PRO-TIP: Until smart home integration systems (and their cost) become more mainstream, higher income audience segments will continue to dominate this part of the smart home technology market.  Lower-income households prioritize affordability and practicality with purchases concentrated on basic smart devices which offer simple automation and energy-saving benefits without significant upfront costs. Examples include robot vacuums and smart TVs.

Voice Control: Forecasters expect the global voice recognition market size to grow from $10.7 billion in 2020 to $27.16 billion by 2026 (Statista). With advancements in natural language processing and voice recognition technology, voice-controlled smart home systems are witnessing rapid adoption.

PRO-TIP: According to Forrester Analytics, smart speaker owners are more likely to purchase other types of smart home devices, like smart locks and thermostats. This bodes well, as data shows that the plans to buy smart speakers is growing within both renters and homeowners, except in those audience segments that rank high for having ALREADY purchased these devices.

Security and Privacy: Concerns about security and privacy are driving demand for more robust features in smart home devices. Research by Deloitte suggests that as much as 65% of consumers are concerned about the security of smart home devices. As a result, there is a growing market for devices with enhanced security features such as end-to-end encryption and biometric authentication.

PRO-TIP: While concern over security and privacy is a factor within all segments, it is typically more important within mature audiences. Using Claritas ConneXions, we took a look at the purchase of actual home security systems. It showed that the more mature the audience, the more likely they are to select a wired system rather than a wifi product. While there are other advantages to wired systems, one of the primary reasons is that of security concerns surrounding using an internet-based system. Offering additional security features, as well as educational materials on security and privacy features, could attract a broader audience for not only security systems, but all smart home products.

Energy Efficiency and Sustainability: Smart home technology plays a significant role in optimizing energy consumption, with potential cost savings and environmental benefits. According to a study by Statista, the global smart home energy market is expected to reach $38.62 billion by 2026, driven by increasing awareness of energy conservation and government initiatives promoting sustainable living.

At CES 2024, the Home Connectivity Alliance (HCA) introduced a new standard aimed at facilitating appliance OEMs to share energy consumption data. This initiative has the potential to enhance the viability of energy monitoring within smart homes, thereby fostering the development of more sustainable and efficient home management systems.

PRO-TIP: In the recently published 2024 Claritas Smart Home Report, a profile was developed of the typical smart home consumer by looking at the top 6 segments with the highest propensity to buy smart home technology. This group was far more likely than other audience segments to agree with such statements as “will pay more for environmentally safe products” and “environmental safety is more important than convenience”. Ads touting company sustainability initiatives and/or product energy efficiency will prove valuable.


Health and Wellness Monitoring: Smart devices such as scales, sleep trackers, and air quality monitors are providing valuable insights into users’ well-being. The global market for smart health and fitness devices is projected to reach $29.4 billion by 2026, fueled by growing health consciousness and the desire for personalized wellness solutions. Taking it a step further, devices that assist in vital sign sensing, general health monitoring and even AI-assisted wellness coaching are expanding the opportunities for smart home technology into additional, older demographics.

PRO-TIP: While the advance of senior assist devices opens up additional opportunities, marketing will still need to be developed for younger audience segments who represent the caregivers. However, this will often still be an older demographic than traditional smart devices such as speakers and appliances.

AI and Machine Learning: Advances in AI and machine learning are enabling smart home devices to learn user habits and preferences, offering personalized experiences. Research by MarketsandMarkets estimates that the AI in the IoT market will grow from $5.1 billion in 2020 to $16.2 billion by 2026, driven by the integration of AI capabilities into smart home devices.

PRO-TIP: Attitudes of the typical smart home tech buyer reflect that this trend will remain popular. Statements that were indexed at greater than 30% higher than other audiences (within the smart home buyer profile group), included:

“I like to live a lifestyle that impresses others”

“I am influenced by What’s Hot and What’s Not”

“I’ll pay just about anything for electronic products I really want”

“I am among the first of my friends to try new technology products”

“I want others to say ‘wow’ when they see my electronics”

“Apps have made my life so much more convenient”

5G Technology: The rollout of 5G wireless networks is expected to further revolutionize the smart home industry by providing high-speed connectivity, low latency, and support for more connected devices. According to GSMA Intelligence, the number of 5G connections worldwide is projected to reach 3.5 billion by 2025, creating new opportunities for smart technology adoption.

PRO-TIP: Understanding the reasons why people are excited about the possibilities of 5G technology is crucial for targeting different audiences when marketing smart technology.. Wealthier audiences have historically gravitated towards 5G due to its premium features. This aligns with their desire for cutting-edge gadgets and superior user experiences. However, as 5G technology becomes more mainstream, less expensive, and more accessible, the exclusivity associated with wealthier audiences’ preference for 5G is gradually diminishing.

Promoting smart home technology requires a strategic approach that leverages various marketing channels to reach target audiences effectively. ConneXions® by Claritas is a proprietary segmentation tool designed specifically for the technology and telecommunications industry that helps you know more about the technology behaviors of today’s connected consumers by creating a more complete picture of current customers and prospects,

Targeting with tailored messages based on specific demographics, interests, and behaviors will further increase your return. Claritas AI Personalization brings together two dynamic elements that influence a consumer’s response: message & context.  Content creation yields hundreds of thousands of different creative versions and learns which message elements work best for different audiences in different contexts. It allows you to create a dynamic, personalized customer journey.

Taking it one step further, multichannel measurement and attribution solutions can be implemented to truly analyze the effectiveness of the media and messaging you use. Claritas’ cross-device and cross-environment attribution integrates impressions and conversions across digital display, OTT/CTV, streaming audio, podcast, direct mail, mobile, out-of-home, and more. This provides you with an accurate and transparent analysis showing which channels are most effective at converting so you can track and react in near-real time.

Contact Claritas to learn how audience segmentation, target messaging, AI Personalization and campaign measurement and attribution solutions can propel your smart home technology sales to the next level.


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