Parks Associates marks four decades of tracking the evolution of the connected home, from early computing and networking to today’s AI-driven, service-based ecosystems. As the industry gathers at CONNECTIONS™, this milestone provides important context for understanding how the market has developed and where it is heading.

Parks Associates hosts the 30th annual CONNECTIONS™: The Premier Connected Home Conference, May 5-7 at the Hyatt Regency Santa Clara, bringing together leaders across the ecosystem to address the next phase of growth in connected living.

1986 to 2026: Building the Connected Home

The connected home market progresses through several distinct phases, each driven by advances in connectivity, device adoption, and service innovation.

• In the 1980s, early PC adoption and bulletin board systems introduce digital connectivity into the home, establishing the foundation for networking. By the 1990s, dial-up internet, email, and e-commerce reshape communication and commerce, while early Wi-Fi development points toward more persistent connectivity in the home.
• The 2000s mark a critical expansion of connected devices. Home networking matures alongside growing PC penetration. Parks Associates research indicates that approximately 65% of U.S. households own a desktop PC in the early 2000s, with nearly 60% subscribing to an internet service . These trends reflect the transition from standalone devices to connected environments within the home.
• Consumer engagement with digital services also accelerates during this period. Parks Associates research shows that more than 87% of U.S. households subscribe to premium television services, demonstrating an early willingness to pay for digital content and services . This adoption of subscription models establishes an important foundation for recurring service strategies that define the market today.
• In the 2010s, the smart home category takes shape, driven by IoT device proliferation, voice assistants, and app-based control. Even in earlier research, Parks Associates identifies clear demand for more integrated experiences. Approximately 35% of households express interest in a single interface to manage multiple devices, highlighting early consumer interest in simplification and unified control .
• In the 2020s, the market shifts toward AI and orchestration. The focus is on systems that integrate data, automation, and services. Home energy management, predictive maintenance, and AI-driven personalization are redefining how value is delivered in the connected home.

These trends are reflected across the CONNECTIONS agenda, where industry leaders examine the transition from products to platforms and services. Sessions address the integration of AI, home energy, and managed services, including the role of EVs, solar, storage, and utility programs in expanding the connected home ecosystem.

2030 to 2070: The Next Phase of Market Evolution

Looking ahead, the connected home continues to evolve as new technologies mature and integration across systems deepens.

• In the 2030s, ambient intelligence becomes more prevalent, with systems responding to user behavior and environmental context with minimal direct input. Interoperability across platforms and ecosystems remains critical to enabling these experiences at scale.
• By the 2040s, the market moves toward more autonomous home systems. Homes increasingly manage energy usage, security, and core functions while interacting with external systems such as the electric grid and connected mobility platforms.
• In the 2050s, advances in spatial computing and interface technologies expand how users interact with connected systems. Digital and physical environments become more tightly integrated, supporting new types of applications and services.

Across both historical and forward-looking phases, one trend remains consistent: the shift from devices to integrated services and ecosystems. Early Parks Associates research highlights the interdependence between broadband, home networking, and consumer electronics as a defining factor in market development. That interdependence now expands to include AI, energy systems, and platform-based services.

At CONNECTIONS, this evolution of connected solutions is reflected in several key areas of focus. AI enables more advanced service models that extend beyond device control to automation and prediction. Home energy management emerges as a core use case, driven by the integration of distributed energy resources. Service providers expand their role beyond connectivity to deliver managed home solutions, while interoperability and ecosystem partnerships become essential to scaling these offerings.

The conference features keynotes from industry leaders shaping this transition, including Robert Vance of Gentex, Jay Desai of Amazon Sidewalk at Ring, John Mack of Raymond James, Kristen Valdes of b.well Connected Health, Derek Richardson of Deako, and Shanya Gill of Vigil, also a 2024 Time Kid of the Year Nominee. These executives bring perspectives from across automotive, platforms, finance, health, and emerging device ecosystems, reflecting the breadth of the connected home market.

Defining the Next Phase of Growth

Over the past 40 years, the connected home evolves from basic connectivity to integrated, intelligent systems. Early indicators such as rising PC penetration, increasing internet adoption, and strong interest in connected services point to the long-term shift toward integrated experiences.

The next phase of the market is defined by how effectively companies integrate technologies and services to deliver measurable value to consumers. The companies best positioned for growth are those moving beyond devices to deliver integrated, service-driven ecosystems aligned with changing consumer expectations.