IFA in Berlin and CEDIA Expo in the U.S. highlight the direction of the smart home industry, showing both the momentum of mass-market adoption and the steady importance of professional services. These global and regional venues bring forward the latest consumer-facing devices while also emphasizing the expertise of integrators, installers, and service providers who ensure the technology delivers on expectations. The exhibitions reveal a clear message: while smart home devices are reaching mass audiences, professional installation and support remain critical to consumer satisfaction and long-term growth.
The U.S. smart home continues to expand at a steady pace, according to Parks Associates research. The average household now owns 17 connected devices, more than double the number a decade ago. These products span multiple categories, from entertainment and health to computing and the home. A household might own a streaming device, a smart thermostat, a video doorbell, and multiple connected speakers, all contributing to the rising baseline of connectivity. This expansion creates both opportunity and complexity. As consumers accumulate more devices, they expect them to work together seamlessly, and that expectation drives demand for installation and integration services.
Market revenues are also growing. By 2029, smart home device revenues in the U.S. will approach $15 billion, up from $10.7 billion in 2024. In terms of units, 102 million devices will ship in 2024, compared to 94 million the year prior. A family that purchased a smart door lock last year may add a video doorbell and indoor cameras this year, expanding both the number of devices and the service opportunities associated with them. Rising sales not only grow the device base but also expand the addressable market for professional services, from installation to long-term support.
Installation remains central to the consumer experience. Do-it-yourself methods dominate, but nearly half of smart home households report using professional installation for at least one device. This reliance is especially visible in categories such as smart lighting, where consumers seek assurance that the products will integrate properly with existing systems and provide consistent performance. For example, a homeowner who attempts to install multiple connected light switches might run into wiring challenges or compatibility issues, prompting a call to a local integrator who can complete the project efficiently and ensure the system functions as promised.
Setup challenges continue to be a barrier. More than half of device owners report issues when attempting DIY installation, with connectivity problems cited most often. Nearly one in five experience difficulty with the physical installation itself. Younger consumers are disproportionately affected, with 42% of those ages 18–24 reporting difficulty with physical installation compared to 19% overall. A first-time renter purchasing a smart door lock, for instance, may discover that the process of removing the existing lock and correctly aligning the new one is more complicated than expected. Such experiences illustrate the value of offering professional assistance, either in full or through “do-it-with-me” models that blend affordability with expert guidance.
Professional installation also directly impacts long-term satisfaction. Devices installed by professionals consistently achieve higher Net Promoter Scores than those installed by the consumer. Smart cameras are a clear example: households with professionally installed cameras report significantly higher satisfaction than those who set them up on their own. The difference lies not only in the ease of setup but also in the peace of mind that comes from knowing the device is configured correctly, securely connected, and integrated with other systems. Higher satisfaction translates into reduced returns, stronger word-of-mouth, and improved brand loyalty.
Device returns further demonstrate the importance of installation. Among the top reasons for returning a product are difficulty with physical installation and problems configuring device settings. Nearly half of households that returned a device said it did not work as advertised, a reflection of mismatched expectations and outcomes. For example, a consumer may return a smart thermostat after struggling to connect it to the Wi-Fi network or integrate it with a voice assistant, even though the device itself is functioning properly. Professional installation reduces this risk by ensuring that devices deliver the advertised functionality from the start.
The influence of professional services extends beyond the individual household. Utilities offering smart thermostats, for example, increasingly rely on professional installation programs to ensure devices are installed and operational. Without installation support, many subsidized or free thermostats remain in the box. Professional installers guarantee that these devices not only reach the wall but also connect to the grid, enabling participation in demand response programs that benefit both the utility and the household.
The role of integrators also extends into commercial and multifamily markets. Education, hospitality, and multifamily housing are adopting smart technologies at a rapid pace, from access control and water leak detection to property-wide Wi-Fi. In these settings, professional installation is not optional but required, given the scale, complexity, and need for reliability. For example, a multifamily property manager retrofitting hundreds of units with smart locks and thermostats cannot rely on residents to self-install. Professional services ensure consistent deployment and integration across the property, aligning with building management systems and security protocols.
As the market matures, professional installation and support will remain central to smart home adoption. Rising device penetration creates new opportunities, but persistent challenges in setup and integration highlight the continuing need for expertise. The success of the next phase of the smart home depends not only on innovative products but also on the services that make them work. Professional installation is therefore not just an option for consumers but a cornerstone of market growth, consumer satisfaction, and long-term engagement.
This research builds on findings from recently published research studies and white papers:
- 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
For more information, contact info@parksassociates.com.