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Research/Analysis: Cedia Values US Residential Technology Market at US$33.8 Billion

The association’s latest market analysis finds widespread optimism among US smart home companies, although shortages of skilled labor remain a major concern.

The US residential technology market is worth an estimated US$33.8 billion, according to new research from Cedia.

The association’s 2026 US Professional Smart Home Market Analysis examines the size and composition of the industry, along with technology adoption, business expectations and workforce challenges. The research was conducted with The Farnsworth Group and presented at Cedia Expo 2026.

Home networking represents 15% of the market, making it the largest technology category identified in the findings. Distributed audio accounts for 11%, while lighting and shading also represent 11%.

Companies expect further growth

The outlook among residential technology companies remains broadly positive. Seventy-seven percent of surveyed firms expect their revenue to grow during the next year.

Artificial intelligence is also gaining ground in day-to-day operations. Cedia said 79% of respondents had increased their use of AI for business purposes over the past year. However, finding skilled workers remains the industry’s biggest business challenge.

“The report gives professionals a closer look at the trends shaping the market today and the opportunities ahead,” said Ryan Bardach, Cedia’s director of research.

Cedia members can access the full report for free, while non-members can purchase it for $999.

Cedia represents the global smart home technology industry and is also a 50% owner of Integrated Systems Europe (ISE), together with Avixa.