2025 Consumer IoT Outlook Report

The Role of Generative AI, Matter Standard, and Energy Management in Smart Home Adoption

The global consumer IoT market is set to grow by 8.8% in 2025, surpassing USD 125 billion, driven by smart home and wearable device sales. New AI-powered models, improved connectivity, and a growing number of first-time buyers will fuel this demand. Key drivers include consumer interest in security, health monitoring, and home energy management, along with a better economic outlook.

Five expectations for the Consumer IoT Market in 2025

Generative AI to Boost IoT Sales in 2025

Generative AI will drive smart home and wearable sales by enhancing user experiences with LLMs and personalized AI insights. Virtual assistants will become more conversational, spurring growth in smart speakers and displays, led by Amazon and Apple.

Matter Standard Expands Smart Home Adoption

The Matter standard will solve device fragmentation, boosting smart home adoption. With industry-wide support, demand for Matter-certified devices will grow.

Smartwatch Market Surge Expected

Smartwatches will dominate wearables, with Apple leading the market. While fitness band sales decline, smartwatch revenues are set to rise.

Rising Demand for Smart Home Energy Management

Energy management solutions like smart thermostats will see increased demand due to energy price concerns and ESG goals.

VR Revenues Rise Despite Flat Sales

VR headset revenue will grow from rising prices, though unit sales remain flat. Apple's Vision Pro may spark future demand for affordable alternatives.