For years, the smart home market has been in flux, promising increased usability and interoperability but often delivering a confusing array of hardware and rising costs. 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 “Alexa” or “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.

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. Virtually all major brands, including LG, Samsung, and 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. Back in February, Amazon announced Alexa+, its new take on its assistant powered by AI, while Google has also scheduled a Gemini for Home rollout later this year. 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. These new enhancements will also help drive a new wave of hardware releases, which will drive interest and sales.

One of the biggest draws of smart home technology is the convenience it offers. Bill Gates once said, “The advance of technology is based on making it fit in so that you don’t really even notice it”, and this rings true of what most consumers expect of their smart devices. Smart speakers should sit in the background, awaiting your commands, and AI-enabled washing machines should adjust cycles and run times without a second thought from the user.

This was echoed by Samsung’s chief customer officer for the UK and Ireland, Deborah Honig, who said: “The AI Home isn’t about building a sci-fi house of the future, it’s about those simple wins that make life easier: lights that switch off when you forget, heating that’s warm the minute you walk through the door, or appliances that quietly save you money in the background.” The brand’s Smart Modular Home installation at IFA demonstrated a home that works ‘behind the scenes’ through its SmartThings technology.

This ability to centralise management of devices allows for greater energy efficiency throughout the home, allowing for utility cost savings which touch upon strong customer sentiment. Customers are open to the higher initial costs of a premium product if the long-term savings are evident. Since heating accounts for about 55% of household energy use, smart thermostats can learn user habits and adjust heating schedules, potentially saving owners hundreds of pounds a year.

Affordability was also a focus at IFA, with 35% of UK consumers saying that their smart home adoption is hampered by higher costs. Philips Hue, the market leader in smart lighting, brought in a new range of lower-priced bulbs starting at £25 or even less as part of a multipack. Importantly, the new bulbs support Matter-over-Thread connectivity, coupling the entry-level cost with the easier setup that can drive new user adoption.

There was also the chance to show off some interesting innovations which can overcome some other barriers to sale which have traditionally hampered adoption. Both Dreame and Eufy showed off robot vacuum technology that allowed them to climb stairs, presenting a valuable resolution to user hesitancy when it comes to those devices. Eufy also announced lights that have radar sensors to detect movement and turn on or off accordingly. Again, these come with Matter compatibility to further enhance the user experience.

With the UK smart home market set for an annual growth rate of 10% through to 2029, up to around £14bn, there is a huge market for brands to get involved with if they can marry up their products and ecosystems to the key consumer trends. The real promise in the market is in building the ultimate convenience-driven smart home that works seamlessly across multiple products in the background and helps drive effective cost savings for the user. Combining this with ranges that span multiple price points yet continue to bring fun, innovative products to consumers will ensure the continued adoption of smart home products.