Rethinking Smart Living

For years, the smart home market has been in a state of flux, promising a future of seamless usability but often delivering a confusing array of hardware and rising costs. Early adopters often became frustrated troubleshooters, grappling with incompatible devices and a confusing array of apps. Now, thanks to the latest developments at IFA 2025 in Berlin, this narrative is taking a turn for the better. There is a renewed sense of promise that this sector can take positive steps forward to become the seamless part of our lives we imagined it would be when we first uttered the words “Hey Google”.

This year's event provided us with a real insight into the direction some of the biggest players in the sector are heading and the consumer trends they are tapping into. The focus has shifted from novelty to genuine utility, addressing the friction points that held back mass adoption. The market is moving from a collection of gadgets to a cohesive ecosystem.

The UK Market and Key Trends

UK interest in the sector has remained strong, even though initial momentum has plateaued. Ownership of smart products has doubled in the past five years. Knowledge of products is a key factor in the market, and around 80% of UK households have at least one smart home product.

A big part of further adoption is devices that are able to operate with other products, be it other device categories or brands. Matter, the open-source protocol that enables devices from different brands to seamlessly interact, has been a slow burner since its 2022 release. However, its growing importance is as critical to the category's future as ever. It operates over Wi-Fi and, crucially, Thread, a low-power mesh network where each new device strengthens the entire system's reliability and speed. Virtually all major brands, including smart lighting partners like Philips, revealed enhanced Matter support in their products at IFA 2025. This move reaffirms their commitment to the protocol and highlights its benefits.

Alongside this element, new AI features are also expected to drive a new wave of smart home interest, as Google has scheduled a Gemini for Home rollout for later this year. The era of the simple, reactive voice assistant is ending, replaced by proactive partners that can handle complex requests like, "Plan a dinner menu based on my smart fridge's inventory and start a cooking playlist." At IFA, brands like Aqara showcased AI capabilities for their security cameras, enabling them to better detect people or motion, delivering those insights to the user. The new generation of smart assistants aims to enhance task completion and responsiveness. They are also designed to be more conversational and interactive.

To read the published article by Rupert Cook, Marketing Director, please visit ERT