The Australia smart homes market size reached USD 4.29 Billion in 2025 and is projected to reach USD 11.54 Billion by 2034. The market is expected to grow at a compound annual growth rate (CAGR) of 11.64% during the forecast period 2026-2034. This growth is driven by rising demand for automated living, energy efficiency, and enhanced security in homes, with customers adopting intelligent technologies that facilitate seamless control and connectivity. Such advances are transforming ordinary homes into smart, responsive environments aligned with comfort, security, and modern lifestyle choices. Explore more at Australia Smart Homes Market

How AI is Reshaping the Future of Australia Smart Homes Market

• AI adoption is revolutionizing home automation by optimizing temperature, security, and energy consumption, enhancing functionality and user experience.

• Companies like Hisense Australia are integrating AI into appliances and TVs to improve energy efficiency and remote smart control via specific mobile apps.

• AI devices in homes can interpret user habits and adapt to individual preferences, making living spaces smarter and more environmentally friendly.

• Advancements in AI enable preventive maintenance and sophisticated voice-controlled assistants for enhanced convenience.

• LG Electronics’ acquisition of an 80% stake in Athom integrates AI connectivity in LG ThinQ, expanding open smart home platforms.

• The increasing use of AI-driven assistants is feeding consumer demand for tailored, smarter living solutions across Australia.

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Market Growth Factors

Rising demand for energy efficiency is a major growth driver in the Australia smart homes market. Homeowners increasingly prioritize reducing utility costs and ecological impacts through smart technologies like automated thermostats, intelligent lighting, and energy monitoring systems that allow real-time power consumption management. Combining solar energy solutions with smart meters and home energy management systems amplifies household efficiency. As awareness of climate change and financial savings increases, demand for energy-efficient smart home options rises significantly, shaping market trends and providing sustainable living benefits.

The increasing penetration of Internet of Things (IoT) devices is transforming Australian homes into interconnected smart environments. IoT enables seamless automation and centralized management of appliances like smart refrigerators, voice-activated assistants, and remote security systems. Affordable, user-friendly IoT products encourage broader adoption and integration into daily life, facilitating data-driven decision-making and enhancing convenience and safety. This trend is crucial for market expansion as consumers seek comprehensive, easy-to-integrate smart home solutions.

Urbanization and digital readiness also fuel market growth, as urban populations in cities like Sydney and Melbourne benefit from modern infrastructure and high-speed internet connectivity. These tech-savvy residents adopt smart home technologies that enhance convenience, efficiency, and living quality. Urban residence designs support integrated smart systems that maximize space utility.