Parks Associates: US Smart Home Market to Reach $15B by 2029 as Professional Installation Gains Traction
As the smart home market heads toward IFA in Europe and CEDIA in the US, Parks Associates projects that US sales will hit $15 billion by 2029. The firm’s latest quarterly survey of 8,000 internet households points to growing reliance on professional installation across categories.
DIY vs. Professional
About 29 percent of consumers ultimately call in a pro even if they try to set up devices themselves. This is especially true for utility-driven products like smart thermostats, where free or low-cost devices often sit unused without professional help. Smart lighting, in particular, is seeing a noticeable jump in pro installs.
Survey data shows a hybrid approach is common: 44 percent of smart home owners have used professional installation for at least one device, while 81 percent have attempted DIY for at least one device. And it seems to matter: professionally installed smart cameras earn higher Net Promoter Scores than their self-installed counterparts, 49 versus 41.
Younger consumers, aged 18 to 24, struggle with physical installation at about twice the rate of the general population (42 percent versus 19 percent), indicating opportunities for pro support or guided installation models. For integrators, commercial pro-install contracts also provide recurring revenue opportunities through maintenance, rapid response, and system refresh programs.
Installation challenges remain a key driver of returns, with Parks Associates noting that difficulties in setup and configuration are among the top three reasons devices come back to retailers.
"Consumers are looking for more than just devices," said Elizabeth Parks, President and CMO, Parks Associates. "They want connected solutions that are easy to implement and fit into their lifestyle. Professional integrators are uniquely positioned to deliver this value by making smart home and advanced home systems work together and offering ongoing service and support."
Driving Value in Multifamily and Commercial Markets
The findings build on several recent studies from Parks Associates, including:
- Smart Home Evolution: Unlocking Value, published with the Connectivity Standards Alliance (CSA)
- AI Transforms the Smart Home Experience
- Smart Spaces: New Opportunities for Custom Integrators, published with Nice Group
- Resident Demand for Technology: Evaluating Amenity Fees, published with Groove Technologies
- Growing Multifamily Value Through Smart Energy Savings, published with SmartRent
- Home Security Reimagined: Intelligence over Hardware, published with Ubiety
- Next-Gen Demand Response: Engaging Consumers, Meeting Energy Demand, published with Resideo Grid Services
- Modernizing Multifamily Housing: Retrofitting Access Control, published with Kwikset
Findings across studies indicated several consistent trends, with a focus on integration, usability, and continuous service.
Consumers are increasingly adopting multiple connected devices, with AI-driven intelligence beginning to influence everything from energy management to security.
Professional installation and guided support remain important, particularly for younger users or more complex systems, helping to reduce returns and improve satisfaction.
In multifamily and commercial markets, smart technology is expanding, enhancing operational efficiency, energy savings, and asset value, while retrofitting and amenity-related technology fees are becoming more common.
To request data or an interview, contact Mindi Sue Sternblitz-Rubenstein, 972-490-1113.