The U.S. smart home market is entering a new phase of growth, and the latest analysis from Parks Associates projects that it will reach $15 billion by 2029. While do-it-yourself solutions have dominated much of the conversation in recent years, the report shows that professional installation is becoming an increasingly important factor in consumer adoption and long-term satisfaction.
One of the most striking findings is how often consumers who initially purchase DIY devices end up seeking professional help. Nearly a third of buyers call in an installer after struggling with setup, and 44 percent of smart home households report that at least one of their devices was professionally installed. At the same time, DIY remains strong, with more than 80 percent of households having installed at least one product themselves. The result is a hybrid marketplace where consumers mix self-installed devices with professionally integrated systems.
The benefits of professional installation extend beyond convenience. Parks Associates found that professionally installed products consistently earn higher satisfaction ratings. For example, smart cameras installed by a technician receive Net Promoter Scores significantly higher than those set up by consumers on their own. This pattern highlights one of the industry’s biggest challenges: technical frustration. Difficulty with setup and configuration ranks among the top reasons why devices are returned to retailers, undercutting both profitability and consumer trust in the technology.
Interestingly, the report points out that younger consumers—those aged 18 to 24—are more likely than the general population to struggle with the physical side of installation, such as wiring or mounting devices. More than 40 percent of this group reported difficulties, compared with just 19 percent overall. This demographic insight suggests that even digital-native generations are not immune to the challenges of getting hardware properly installed, and that they may actually benefit the most from guided or professional assistance.
For manufacturers and retailers, the findings underscore the importance of pairing products with accessible installation options. Plug-and-play simplicity will always be attractive, but the data shows that offering professional support—whether in person or remotely—can reduce return rates, boost satisfaction, and build customer loyalty. For service providers and integrators, the implications are even clearer. The rise of professional installation opens the door to recurring revenue opportunities, from system maintenance and updates to troubleshooting and compatibility refreshes. As smart home devices grow more interconnected, consumers will increasingly look for someone to make their systems work seamlessly together.
Looking ahead, the U.S. smart home industry appears to be shifting away from a purely DIY model and toward a more balanced ecosystem in which professional installation plays a central role. While cost remains a barrier for some households, the value of peace of mind, reliability, and ease of use is driving more consumers to embrace the services of professional installers. If these trends continue, by 2029 the market will not only be larger but also more mature, with consumers enjoying smoother experiences and companies benefiting from more stable revenue streams.