2025 Consumer IoT Outlook Report
The Role of Generative AI, Matter Standard, and Energy Management in Smart Home Adoption
The global consumer IoT market is set to experience significant growth in 2025, with revenues expected to surge by 8.8% YoY, surpassing USD 125 billion. Driving this expansion are advancements in smart home devices, wearables, and the integration of AI across products. As consumers increasingly prioritize connectivity, security, health monitoring, and energy management, new buyers are entering the market alongside tech-savvy upgraders.
Enter your email below to register for FULL 2025 Consumer IoT Outlook Report, available exclusively in the TechInsights Platform.
Five Key Market Expectations for 2025
Get a glimpse of the future as the global consumer IoT market is set to grow 8.8% in 2025, driven by generative AI, the Matter standard, and rising demand for smart home solutions!
Here are the five key market trends to watch:
Generative AI to Drive IoT Sales Growth in 2025
Generative AI will revitalize smart home and wearable device sales by offering enhanced user experiences through large language models (LLMs) and AI-powered recommendation engines. This technology will provide personalized insights in home automation and health, transforming virtual assistants into more conversational tools. TechInsights expects significant growth in smart speaker and display sales, with Amazon and Apple leading the way.
Matter Standard Expands, Boosting Smart Home Adoption
The Matter standard is set to enhance smart home device interoperability, solving fragmentation issues and driving growth in the market. With industry-wide support from manufacturers and chip makers, demand for Matter-certified products will rise as new device categories adopt the standard, offering better efficiency and improved features.
Smartwatch Market Growth Expected to Surge in 2025
Smartwatches will be the driving force in wearable tech, with sales expected to rise. Apple will dominate the market with its innovations like the Ultra and Series 10 models. While fitness bands decline, smartwatches are anticipated to experience rising revenue despite lower selling prices.
Growing Demand for Smart Home Energy Management Solutions
Energy management is becoming a top priority for consumers and manufacturers, driven by fluctuating energy prices and the need to meet ESG goals. TechInsights forecasts increased sales for smart thermostats, as more consumers seek devices that monitor and manage household energy usage.
Rising VR Headset Revenues Despite Flat Sales Volumes
Although VR headset unit sales are expected to remain flat, rising average sales prices will drive a substantial increase in revenue. While Apple’s Vision Pro is too costly for mass adoption, a more affordable version could ignite future growth. Smartglasses are also set to see strong growth, led by demand in North America and Western Europe.
Key Chapters at a Glance: Unlocking 2025 Consumer IoT Insights
Market Outlook
Demand for smart home devices and wearables surged post-pandemic but weakened due to inflation. As inflation eases, manufacturers will integrate AI, enhancing user interactions and privacy. With the CSA Matter standard gaining momentum, the consumer IoT market is set for growth driven by innovative products.
Technical Outlook
The latest image sensor roadmap suggests that marketing will dominate technological advancements in the coming years. The Wi-Fi and IoT update highlights direct-to-device technology for Chinese OEMs like Huawei. As we approach 2025, GAAFET architecture will replace FinFET scaling, with Intel set to lead innovations in high-performance chipsets for data centers.
Procurement Outlook
In 2024, semiconductor sales are set for impressive growth, with significant increases driven by soaring demand for high-value semiconductors essential for AI advancements. As edge AI devices gain traction and outdated COVID-era products are replaced, TechInsights anticipates continued momentum into 2025, with sales reaching new heights and average selling prices climbing further.
Price Outlook
Memory sales are booming, driven by rising average selling prices and demand from edge AI devices and datacenters. While GPUs lead the logic sales growth due to AI server demand, prices are expected to stabilize and rise later in the year, except for discrete semiconductors facing declines. With steady lead times and a rebound in demand for sensors and optoelectronics, the semiconductor market is set for a dynamic shift.
Lead Time Outlook
Lead times remain stable at 14 weeks across most categories, with a slight increase expected in the fourth quarter as demand returns. Connectors have the shortest lead time at 10 weeks, while power products have the longest at 19 weeks, projected to extend further. Efficient management of lead times will be essential as the semiconductor market evolves.
Get Your Insights on Consumer IoT Trends
Don’t miss out on essential insights into the evolving landscape of the consumer IoT market.
Explore the exciting role of generative AI, the Matter standard, and the rising demand for energy management solutions.
How Trump Policies Could Disrupt Automotive Semiconductor Markets
Discover how Trump policies could impact automotive semiconductor demand, with a focus on EV sales, tariffs, and global trade.
Trump, CHIPS, and Tariffs: How the 2024 U.S. Election Will Reshape the Semiconductor Industry
Discover how the 2024 U.S. election could reshape the semiconductor industry with increased tariffs, CHIPS Act uncertainties, and shifting global supply chains. Prepare for what's next.
AI Procurement Outlook: A Record-Breaking Year for Semiconductors
Explore trends driving semiconductor growth, record-breaking sales, rising ASPs, and the impact of AI hardware demand on the global market.
The authoritative information platform to the semiconductor industry.
Discover why TechInsights stands as the semiconductor industry's most trusted source for actionable, in-depth intelligence.
