Australia Smart Home Market Size, Share, and Trends: Forecast and Growth Analysis Report (2026-2035)

Market Overview

The Australia smart home market is at an inflection point. Voice speakers and lighting once defined connected homes, but home batteries, security rules and cross-brand control now push households towards energy management and professionally installed systems.

Three forces are shaping the market: policy, with the Cheaper Home Batteries Program funded at AUD 7.2 billion and smart device security rules in force from 4 March 2026; assistants, as Gemini for Home reached Australian early access in April 2026; and energy, with more than 500,000 home batteries installed by August 2026.

In December 2025 Signify made the Hue Bridge Pro available in Australia at AUD 179.95, in March 2026 the Australian Capital Territory reported more than 25,000 Sustainable Household Scheme loans, and in October 2026 Allegion raised its full-year outlook.

Key Market Trends and Insights

• Home battery boom: The Cheaper Home Batteries Program, begun in July 2025 with AUD 7.2 billion over four years, passed 500,000 installations by August 2026, which pulls households towards energy monitoring and automated control.
• Device security rules: Mandatory security standards for consumer smart devices commenced on 4 March 2026, requiring unique or user-set passwords, a published reporting channel and a stated security update end date for devices made from that date.
• Voice assistants advance: Google began Gemini for Home early access in Australia on 10 April 2026, while Alexa+ had not reached Australian homes by June 2026, although Amazon told local media that it would arrive in 2026.
• Interoperability gap: By October 2026, 67% of smart home adopters reported trouble getting products to work together, and only about one in seven Australians knew of Matter, which limits cross-brand control.

Australia Smart Home Market Size and Forecast

The market is moving from single connected gadgets towards energy-aware, professionally installed home systems. Hardware leads because hubs, sensors, locks and lighting sit at the base of every setup, while smart appliances grow quickest among components. Security holds established demand, and energy management grows fastest among applications as home batteries spread. Specialty stores anchor advice-led purchases, and online grows fastest among channels. New South Wales is the biggest region and also grows quickest. Government battery support, security rules and assistant upgrades point to durable growth, although interoperability remains a constraint.

Key Takeaways: Australia Smart Home Market

Batteries and Security Rules Anchor Growth

Revenue is on course to more than double across the decade, from AUD 3.42 billion in 2025 to AUD 7.41 billion in 2035 at an 8.0% CAGR. Home batteries passing 500,000 installations by August 2026 and mandatory device security rules from March 2026 give suppliers a funded, regulated base for demand.

Smart Appliances and Energy Management Lead Growth

Hardware holds the largest share, but Smart Appliances grow at an estimated 9.1% CAGR and Energy Management at an estimated 9.4% CAGR through 2035. Electrolux Group reported organic sales growth of 3.5% in October 2026, and its Electrolux Life app links connected products.

Assistant Upgrades Reach Australian Homes

Google began Gemini for Home early access in Australia on 10 April 2026, upgrading Google Assistant to Gemini at no extra cost. Premium features such as Gemini Live need a Google Home Premium subscription, while Alexa+ had not launched locally by June 2026.

• Early access upgrades Google Assistant to Gemini at no extra cost
• Alexa+ was in nine countries by June 2026 but not Australia
• Gemini Live, camera history search and voice automations need Google Home Premium

Australia Smart Home Market Report Summary

Key Insight

The trajectory reflects a shift from convenience gadgets to energy and safety systems rather than a passing fashion. Home batteries, device security rules and assistant upgrades give households clear reasons to connect more of the home. Hardware leads on scale, smart appliances and energy management grow quickest, and New South Wales leads and grows fastest among regions. Growth is underpinned by funded government programs and published rules rather than speculative forecasts.

Key Trends in the Australia Smart Home Market

The Australia smart home market is being reshaped by interoperability gaps, home battery uptake, assistant upgrades and mandatory security standards for connected devices.

October 2026 - Interoperability Gaps and AI Trust Shape Smart Home Buying Decisions

• An October 2026 household survey found 67% of smart home adopters struggled to get products working together.
• Only about one in seven Australians knew of Matter, while 70% believed AI could manage a smart home better than they can.
• This translates into demand for installers and bridges that connect devices from different brands.

August 2026 - Home Battery Installations Pass 500,000 Under the Federal Program

• The Cheaper Home Batteries Program passed 500,000 installations by 14 August 2026, with the milestone marked in Castle Hill.
• More than three quarters of the batteries are in outer suburban and regional areas, and 8,846 installers are accredited.
• This translates into rising demand for monitoring, energy management apps and automation that coordinate batteries with solar and appliances.

April 2026 - Gemini for Home Reaches Australian Speakers and Displays in Early Access

• Google began Gemini for Home early access in Australia on 10 April 2026, upgrading Google Assistant at no extra cost.
• Users say Hey Google for specific help or Hey Google, let's chat for a freer Gemini Live conversation.
• This translates into a clearer path to paid Google Home Premium features such as camera history search and voice-created automations.

March 2026 - Mandatory Security Standards Take Effect for Consumer Smart Devices

• The Cyber Security (Security Standards for Smart Devices) Rules 2025 commenced on 4 March 2026 for devices made from that date.
• Manufacturers must avoid universal default passwords, publish a way to report security issues and state how long updates will last.
• This translates into compliance work for suppliers, who must provide a statement of compliance with in-scope products.

Key Insight

Interoperability gaps, a federal battery program, assistant upgrades and mandatory security rules show growth that is structurally supported rather than cyclical. Policy, energy costs and artificial intelligence are the main forces. The market stays central to household energy and safety through the forecast period.

Recent Market Developments in the Australia Smart Home Market

Recent developments, presented from the most recent, show Allegion's raised outlook, JB Hi-Fi's full-year result, Sonos quarterly revenue growth and Signify's Hue Bridge Pro launch in Australia.

October 2026 - Allegion Raises 2026 Outlook After Third Quarter Revenue Growth

• Allegion reported on 22 October 2026 third quarter revenue of USD 1,172.6 million, up 9.6% and 7.2% organic.
• International revenue was USD 230.2 million, up 1.8%, while organic revenue fell 0.2% on lower volumes.
• The company raised its 2026 organic revenue growth outlook to a range of 5.0% to 6.0%.

August 2026 - JB Hi-Fi Reports Full-Year Sales Up 4.8% to AUD 11.06 Billion

• JB Hi-Fi reported on 17 August 2026 full-year revenue up 4.8% to AUD 11,064.0 million.
• Online made up more than 17% of sales in both its Australian and New Zealand JB Hi-Fi divisions.
• The Good Guys grew 2.7%, and the recently acquired e&s added AUD 273.1 million of full-year sales.

July 2026 - Sonos Reports Fiscal Third Quarter Revenue Up 9%

• Sonos reported on 29 July 2026 fiscal third quarter revenue of USD 375.3 million, up 9% year on year.
• Speaker revenue was USD 285.3 million and system products USD 69.3 million, with the Americas largest at USD 238.4 million.
• GAAP gross margin rose to 50.4%, including a one-time USD 23.2 million benefit from tariff refunds.

December 2025 - Signify Makes Hue Bridge Pro Available in Australia

• Signify announced on 19 December 2025 that the Hue Bridge Pro is available in Australia at AUD 179.95.
• The bridge supports up to 150 lights and 50 accessories and enables Hue Motion Aware, which turns lights into motion sensors.
• The Hue AI assistant is also live in Australia and New Zealand.

Key Insight

Allegion's raised outlook, JB Hi-Fi's full-year result, Sonos revenue growth and Signify's Hue Bridge Pro launch show the market moving from planning to delivery. The Hue Bridge Pro launch and Allegion's results are the flagship events. The momentum validates commercial confidence in connected products, locks and lighting.

Australia Smart Home Industry Segmentation

The Expert Market Research’s report on the Australia Smart Home Market offers a detailed analysis of the market based on the following segments.

Market Breakup by Component

• Hardware
• AI Speaker
• Smart Appliances
• Services Others

Hardware leads, in our estimate, because hubs, sensors, locks and lighting form the base of every setup, and Signify made the Hue Bridge Pro available in Australia at AUD 179.95 in December 2025. Smart Appliances grow fastest at an estimated 9.1% CAGR through 2035, as Electrolux Group reported organic sales growth of 3.5% in October 2026 and links products through its Electrolux Life app. AI Speaker demand follows Gemini for Home early access from April 2026. Services Others covers installation and support, where installation revenue rose 87% in 2025, reported in October 2026.

Market Breakup by Application

• Security
• Smart Appliances
• Energy Management
• Comfort and Lighting
• Home Entertainment
• Control and Connectivity

Security leads, in our estimate, as locks, cameras and access control anchor purchases, and Allegion raised its 2026 outlook in October 2026. Energy Management grows fastest at an estimated 9.4% CAGR through 2035, as the Cheaper Home Batteries Program passed 500,000 installations in August 2026. Smart Appliances connect through brand apps, and Comfort and Lighting is led by Signify's Hue range. Home Entertainment relies on Sonos, which reported revenue of USD 375.3 million in July 2026. Control and Connectivity depends on Matter, known to one in seven Australians in October 2026.

Market Breakup by Distribution Channel

• Specialty Stores
• Online
• Others

Specialty Stores lead, in our estimate, because shoppers want demonstration and installer advice, and JB Hi-Fi reported full-year revenue of AUD 11,064.0 million in August 2026. Online grows fastest at an estimated 9.0% CAGR through 2035, as online made up more than 17% of sales in both JB Hi-Fi divisions in Australia and New Zealand in August 2026. Others covers professional installers and direct sales by brands, with 79% of upgraders valuing installer advice in October 2026, alongside retailers outside the specialty format.

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australia Capital Territory
• Western Australia
• Others (Rest of Australia)

New South Wales dominates, in our estimate, with the largest population, and grows fastest at an estimated 9.2% CAGR through 2035, as Castle Hill marked 500,000 batteries in August 2026. Western Australia grows at 8.0%, with 22,000 batteries by January 2026. Queensland grows at 7.9% and Victoria at 7.6%, where the state battery program delivered about 20,000 systems before the federal scheme replaced it in October 2025. The Australia Capital Territory grows at 7.2%, with just over half of Sustainable Household Scheme applications for batteries in March 2026. Others grow at 6.4%, as Rest of Australia, covering South Australia, Tasmania and the Northern Territory.

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If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Competitive Landscape in the Australia Smart Home Market

Competition combines global audio, lighting, lock and appliance makers, platform companies, retailers and professional installers. Entry barriers include interoperability, brand trust, compliance with the 2026 security rules, retail reach and installer relationships.

Sonos, Inc

Sonos, Inc is headquartered in Santa Barbara, California, and was founded in 2002 as Rincon Audio, and later renamed Sonos. Its portfolio covers wireless speakers such as Era 100, Era 300, Move and Roam, Arc and Beam soundbars, Sub subwoofers and Ace headphones. On 29 July 2026 it reported fiscal third quarter revenue of USD 375.3 million, up 9%, with the Americas largest at USD 238.4 million. Its differentiators are multi-room audio software and home theatre systems.

Signify

Signify is headquartered in Eindhoven, the Netherlands, and was formed in 2016 as Philips Lighting before being renamed Signify in 2018. Its portfolio covers connected lighting under Philips Hue and WiZ alongside professional luminaires. In Australia it made the Hue Bridge Pro available at AUD 179.95 on 19 December 2025, and on 23 October 2026 it reported third quarter sales of EUR 1,367 million. Its differentiators are the Hue ecosystem and a bridge supporting up to 150 lights and 50 accessories.

Allegion Plc

Allegion Plc is headquartered in Dublin, Ireland, and was spun off from Ingersoll Rand in 2013, with 31 global brands including Schlage, LCN and Von Duprin. In Australia, Allegion (Australia) Pty Ltd sells Schlage, Brio, Briton and Gainsborough products, including the Gainsborough Smart Pull Handle with fingerprint reader and backlit keypad launched in the second quarter of 2026. On 22 October 2026 Allegion reported third quarter revenue of USD 1,172.6 million. Its differentiators are local product development and teams in five Australian cities.

Electrolux Home Products Pty Ltd

Electrolux Home Products Pty Ltd, the Australian arm of Electrolux Group, belongs to a company founded in 1919 and headquartered in Stockholm, Sweden. Electrolux bought Email Ltd in 2001, adding Westinghouse, Simpson, Kelvinator, Chef and Dishlex to its Australian brands. Connected products pair with the Electrolux Life app, and on 23 October 2026 the Group reported third quarter net sales of SEK 33,919 million with organic growth of 3.5%. Its differentiators are a broad household range and long local brand heritage.

Other players operating in the Australia smart home market include Brilliant Lighting (Aust) Pty Ltd, Ring LLC, Access Hardware (TAS) Pty Ltd., and Clarke Security Pty Ltd, alongside installers, retailers and energy specialists supplying hubs, cameras, locks and controls across Australia.

Key Insight

Competition rests on interoperability, security compliance, brand trust and installer reach rather than price alone. Sonos, Inc and Signify lead in audio and lighting, Allegion Plc in locks, and Electrolux Home Products Pty Ltd in connected appliances. Brilliant Lighting (Aust) Pty Ltd, Ring LLC, Access Hardware (TAS) Pty Ltd., and Clarke Security Pty Ltd add lighting, camera and hardware depth. Mandatory security rules push global suppliers to build local compliance and support teams.