CEDIA has revealed the findings from its 2026 U.S. Professional Smart Home Market Analysis, conducted in partnership with The Farnsworth Group.

According to CEDIA, the research provides an in-depth look at the size, composition and current business environment of the residential technology industry.

Here are the takeaways:

• The U.S. residential technology industry is worth an estimated $33.8 billion
• Home networking accounts for 15% of the market, followed by distributed audio at 11% and lighting and shading at 11%
• 77% of firms expect revenue growth over the next year
• 79% of respondents reported an increase in their use of AI in business operations over the past year
• Skilled labor remains the industry’s biggest business challenge

Other key findings include that 25% of respondents expect higher demand will drive an increase in revenue in the next year. When it comes to reasons why revenue is expected to decline in the next year, 23% cited the economy and inflation, while 15% said less demand. When asked about the biggest business opportunities in the year ahead, 17% said lighting, followed by AI integration at 13%.

“The 2026 U.S. Professional Smart Home Market Analysis paints a strong picture of an industry with significant economic impact and continued opportunity for growth,” said Ryan Bardach, director of research at CEDIA. 

“The report gives professionals a closer look at the trends shaping the market today and the opportunities ahead, making it a valuable resource for anyone looking to better understand where the industry is headed.”