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Home Automation Services in the US Industry Data and Analysis
Home automation services companies have performed very well in recent years due to long-term factors that have driven solid revenue growth. Technological advances, rising software investment and broader mobile connectivity have made home automation more capable and accessible, driving demand for security, climate, lighting and cleaning systems. Adoption is expanding beyond younger users, as internet use among adults aged 65 and older reaches 90.0%, creating an important, underserved market. Higher-income households remain especially valuable because they can afford integrated, premium smart-home installations. Security subscriptions and AI-enabled video analytics are also increasing recurring revenue potential by improving detection accuracy and reducing the number of irrelevant alerts. However, strong demand has attracted many smaller competitors: the number of enterprises grew by more than 14.0% annually from 2021 to 2026. As fragmentation intensifies, established providers must differentiate through bundled offerings, partnerships, reliable support and seamless new-home integrations.
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What's included in this industry analysis
IBISWorld's research coverage on the Home Automation Services industry in the United States includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released September 2026.
About this industry
What's this industry report about?
The Home Automation Services industry in the United States operates under the NAICS industry code OD6378. Home automation services companies provide the installation, integration, monitoring and support of connected technologies that automatically or remotely manage household functions. They can coordinate lighting, climate control, appliances, access and security through apps, voice controls, schedules, sensors and networked devices to improve convenience, safety, comfort and energy efficiency. Related terms covered in the Home Automation Services industry in the United States include internet of things, smart home and smart hub.
What's included in this industry?
Products and services covered in Home Automation Services industry in the United States include Safety and Security Systems, Air Systems and Lighting Systems.
What companies are included in this industry?
The Home Automation Services industry in the United States is highly fragmented with no companies holding a market share greater than 5%.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Home Automation Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Home Automation Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Home Automation Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Home Automation Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Home Automation Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Home Automation Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Home Automation Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Home Automation Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Home Automation Services industry in the United States in 2026?
The market size of the Home Automation Services industry in the United States is $26.9bn in 2026.
How many businesses are there in the Home Automation Services industry in the United States in 2026?
There are 10,190 businesses in the Home Automation Services industry in the United States, which has grown at a CAGR of 14.3 % between 2021 and 2026.
How may import tariffs affect the Home Automation Services industry in the United States?
The Home Automation Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Home Automation Services industry in the United States?
The Home Automation Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Home Automation Services industry in the United States grown or declined over the past 5 years?
The market size of the Home Automation Services industry in the United States has been growing at a CAGR of 9.2 % between 2021 and 2026.
What is the forecast growth of the Home Automation Services industry in the United States over the next 5 years?
Over the next five years, the Home Automation Services industry in the United States is expected to grow.
What does the Home Automation Services industry in the United States include?
Automating home climate control and Installing digital security systems are part of the Home Automation Services industry in the United States.
How competitive is the Home Automation Services industry in the United States?
The level of competition is moderate and steady in the Home Automation Services industry in the United States.
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