Security and AI services create new growth opportunities for underdeveloped smart home subscription market
PLANO, Texas, Aug. 27, 2026 /PRNewswire/ — Parks Associates’ new research Smart Home Platforms: UX, Loyalty, Monetization finds that 53% of smart home device owners do not pay any subscription fees associated with their smart home devices, systems, or appliances. The research, from Parks Associates’ quarterly consumer surveys of 8,000 US internet households, finds that security remains the strongest foundation for recurring smart home revenues, although AI-based services are beginning to establish a foothold.
- 37% of smart home device owners pay for a home security system service.
- 19% of smart home device owners pay for a video device service, and 17% pay for enhanced network monitoring, data privacy, or security services.
- 16% of smart home device owners report paying for a premium AI voice assistant service, such as Alexa+, Google Home Premium with Gemini, or Josh.ai.
“Security is still the anchor for subscription revenue in the smart home,” said Daniel Holcomb, Senior Analyst, Smart Home Research, Parks Associates. “AI will help expand the market further, but successful services need to solve tangible household problems, like protecting the home, preventing failures, lowering costs, and making technology easier to manage.”
Smart home device owners represent roughly one-half of US internet households. Among these households, the following tested service concepts are appealing:
- Cybersecurity monitoring appealing
- Maintenance monitoring
- Energy optimization
- Context-aware home security
- Home tech support agent
The research highlights the concentration of dedicated devices within the smart home user base. Ownership of stand-alone smart home control hubs remained flat at 5% of US internet households in 2025, consistent with rates in 2024 and 2023. However, adoption rises dramatically as households acquire more smart home devices.
“Dedicated hubs serve smart home power users seeking sophisticated cross-device automation,” Holcomb said. “Hub functionality for mainstream consumers is often incorporated into smart speakers, displays, security systems, and other products.”
Parks Associates recently announced its research roadmap and 2027 event plans, including the 21st annual CONNECTIONS™ Summit at CES, January 6 in Las Vegas, and the signature connected home event CONNECTIONS™: The Premier Connected Home Conference, May 4-6. 2027, in Santa Clara, Calif., where the firm brings together leading connected home industry players for interactive sessions, visionary keynotes, and networking. To speak with an analyst or for more information, contact Mindi Sue Sternbliz-Rubenstein.
About Parks Associates
Parks Associates helps companies identify new opportunities, refine strategy, and accelerate growth in connected technology markets through data-driven insights and industry expertise. With more than 40 years of experience, the firm delivers proprietary consumer and industry research, market forecasts, and strategic analysis that guide business decisions across personal, connected home, small business, and commercial technology ecosystems. Parks Associates supports clients in navigating evolving markets including AI, security, smart home, broadband, entertainment, energy, multifamily, smart buildings, and connected health.
The firm also fosters industry growth and collaboration by convening thousands of leaders each year through its flagship executive conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.
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Contact:
Mindi Sue Sternblitz-Rubenstein
Parks Associates
972.490.1113
[email protected]
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