NEW YORK - s4story -- The U.S. home automation services market is witnessing strong growth, rising from a value of USD 35.8 billion in 2024 to an expected USD 118.9 billion by 2032, advancing at an impressive CAGR of 16.3% from 2025 to 2032. This momentum is driven by the widespread adoption of smart and connected home appliances, as homeowners upgrade to more-intuitive systems that deliver convenience, comfort, and enhanced control. With IoT devices, AI-powered assistants, and wireless technologies becoming mainstream, users can now effortlessly manage lighting, climate settings, entertainment systems, and security features through centralized interfaces.

Key Insights

• The market showcases strong segmentation momentum, with security & access control leading at 45% share in 2024, driven by widespread adoption of video doorbells, smart locks, and sensors that help deter intrusions and safeguard residential properties.
• Energy management is the fastest-growing product category, as rising electricity costs and sustainability goals push homeowners toward smart meters and energy monitoring systems that enhance control over consumption patterns.
• In terms of technology, wireless systems dominate because consumers prefer customizable, wire-free setups supported by Wi-Fi, Zigbee, Bluetooth, and Z-Wave. This trend is amplified by the growing reliance on mobile apps and voice assistants for intuitive home control.
• Hybrid systems are projected to grow at 16.6% CAGR, as high-end homes increasingly blend wired reliability with wireless flexibility to support premium automation experiences, such as home theaters and unified climate zones.

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• Managed services represent the fastest-growing area, owing to heightened demand for subscription-based remote monitoring, troubleshooting, and security management amid increasing privacy and safety concerns.
• Within applications, new construction holds the larger share, as modern properties often incorporate smart infrastructure from the outset to enhance convenience, energy efficiency, and safety.
• Retrofitting is expanding at the higher CAGR, supported by DIY-friendly devices, affordability improvements, and rising interest among existing homeowners seeking to modernize their residences with smart doorbells, thermostats, and lighting solutions.

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