The news: Even before the IFA 2025 show floor opens in Berlin, brands are flooding Europe’s CES with announcements pushing AI beyond PCs and phones into the smart home. Ambient intelligence promises proactive tech: Manufacturers unveiled ecosystems that link appliances, security, lighting, and entertainment—using “ambient intelligence” to replace voice and app commands with proactive, intuitive service. Our take: The race to ambient intelligence shows where innovation is headed—invisible systems that anticipate needs. But over-automation risks eroding consumer control and deepening dependence on walled gardens.

Despite economic headwinds slowing growth, most smart home IoT device categories continue to gain users looking for increased capabilities.

By 2026, nearly half of US households will use smart devices—from lights to locks to appliances. Here’s how advertisers can capitalize on connectivity enabled by Matter, the newly launched interoperability protocol.

The share of US households adopting smart home devices will grow to 41.9% this year as consumers increasingly demand convenience and data transparency.

Not only is the number of connected consumers increasing, but they're also engaging with products across a variety of categories, from appliances and cars to security systems and wearables, according to InMobi research.