How smart home technology is evolving

How smart home technology is evolving

ISE News and Insights
27 Aug 2026
Smart home technology is moving beyond collections of connected devices towards more integrated residential environments. CEDIA's latest UK market analysis, based on input from more than 500 integrators, manufacturers and distributors alongside industry sales data, valued the professional smart-home market at £3.1 billion in 2025.

The research also reveals where professional integration is heading. Home cinema, lighting and shading, and networking are among the leading growth categories, while energy management is becoming a significant focus for integrators.

At ISE, those developments are increasingly converging around a common idea: creating homes that are not simply connected, but more responsive to the people living in them.

Lighting gets more human

Lighting and shading remain important growth categories for residential integrators, according to CEDIA's latest UK market analysis.

The technology is also becoming more sophisticated. Human-centric systems can vary light intensity and colour characteristics through the day, with the aim of supporting natural circadian rhythms as well as creating different visual environments. Occupancy sensing, scheduling and automated control can also prevent lighting being left on unnecessarily.

At ISE 2026, the How Lighting is Changing session on the Smart Home Technology Stage brought together David Weinstein of Lutron, Ken Erdmann of CEDIA, Alexander Cadisch of Phos Light and Jeff Hayward of Wildwood Plus to examine human-centric lighting, circadian support, intelligent control and energy efficiency.

For integrators and designers, the shift is important. Lighting is increasingly part of the wider residential technology system rather than a standalone function.

AI makes the home more responsive

Artificial intelligence is introducing another layer of intelligence to connected homes.

Compatible security cameras, for example, can use computer vision to distinguish between categories such as people, animals and vehicles, helping generate more selective alerts. Elsewhere in the home, AI can analyse patterns of behaviour and system data to support more adaptive automation.

The potential goes beyond individual products. At the ISE 2026 Smart Home Technology Stage, the session AI: What's Happening Now and Where Next? examined how AI-powered tools are being applied to automation, personalisation and predictive systems that can adapt to occupants' needs.

That creates a different model for smart-home design. Instead of relying entirely on fixed commands and pre-programmed routines, future systems can increasingly use data to help decide how the home should respond.

Energy management moves up the agenda

Energy is also becoming a more significant part of residential integration.

CEDIA's latest UK research identifies energy management as a central focus for many integrators, alongside growing interest in renewable energy, battery storage and EV charging.

This is broadening the role of the smart-home platform. Integrated control can bring energy monitoring, lighting, shading, HVAC and other systems together, allowing consumption to be managed across the home rather than device by device.

AI has the potential to take this further by analysing patterns of energy use and helping systems respond to changing occupancy, tariffs, weather conditions or locally generated power.

The same convergence was evident at ISE 2026, where energy management, AI-driven automation and cybersecurity were among the themes explored by the Smart Spaces Megatrends programme.

Home cinema remains a growth area

Entertainment remains another important part of the professional smart-home market. CEDIA's latest UK analysis identifies home cinema as one of the industry's leading growth categories.

But creating an immersive entertainment space involves much more than increasing screen resolution. High-resolution video, immersive audio, acoustic treatment, lighting and integrated control can be designed as a single system, with the technology incorporated into the room rather than added afterwards.

ISE 2026 provided a practical example on the Smart Home Technology Stage. The session Buzzards Road: The Story Behind A Multi CEDIA Award Winning Home Cinema brought together IndigoZest and Cinema Luxe to discuss the design decisions and technology behind an award-winning residential cinema.

It also reflects a wider shift towards treating entertainment technology as part of interior design – something that requires architects, designers and integrators to collaborate much earlier in a project.

The connected home doesn't stop at the back door

Smart technology is extending beyond the home's interior too.

Weather-resistant displays and speakers can bring entertainment into gardens and terraces, while outdoor lighting can be incorporated into the same control environment as indoor systems. Connected irrigation controllers can use information such as weather forecasts and soil conditions to adjust watering schedules and reduce unnecessary watering.

The result is less of a distinction between “smart home” and “outdoor technology”. For integrators, the opportunity is increasingly to consider the property as a whole and determine how networking, control and user interfaces should extend across it.

From connected devices to integrated living

The evolution of the smart home is therefore not simply about adding more technology.

Lighting, entertainment, security, energy management, networking and AI are becoming increasingly interconnected. The challenge for residential technology professionals is to make those systems work together while keeping the experience straightforward for occupants.

That convergence will be visible at ISE 2027's Residential & Smart Building Zone, alongside the Smart Home Technology Stage and CEDIA Smart Home Technology Conference.

For integrators, architects and designers, the opportunity is to move beyond connecting devices and think about the home as a complete environment – one that can adapt more intelligently to the people who live there.


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Further reading

Find out more about smart homes and buildings at ISE.

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