Connected living room market seen doubling by 2035

The connected living room market is projected to grow from USD 70.51 billion in 2026 to USD 154.18 billion by 2035, driven by faster broadband, cheaper devices and rising adoption of smart TV-centered home ecosystems. The report points to Asia-Pacific as the largest regional market and the Middle East & Africa as the fastest-growing.

Why it matters: - The connected living room is becoming a central control point for entertainment, home automation and AI-powered household features. - Market growth is being supported by broadband upgrades, lower device prices and platform business models that monetize software and advertising instead of hardware alone. - Smart TVs and streaming devices are expanding the number of households using connected home services.

What happened: - The global connected living room market reached USD 64.92 billion in 2025. - The market is projected to rise from USD 70.51 billion in 2026 to USD 154.18 billion by 2035. - That implies a compound annual growth rate of 8.61% during the forecast period. - The report frames the connected living room as an ecosystem of smart TVs, streaming media players, smart speakers, smart home hubs, smart lighting and voice-controlled automation devices. - The ecosystem connects through Wi-Fi, Bluetooth, Zigbee and Z-Wave protocols.

The details: - Two catalysts are driving demand: Wi-Fi 6E and Wi-Fi 7 residential broadband rollout, and sharp device-price compression from vertically integrated Asian manufacturers. - The report ties broadband momentum to the US Broadband Equity, Access, and Deployment program’s USD 42.45 billion allocation and the EU’s Gigabit Infrastructure Act, which targets universal gigabit coverage by 2030. - Large-screen smart TV entry prices have fallen by an estimated 28% over four years. - Platform-centric models are replacing hardware-centric ones as smart TV operating systems, retail media advertising and shoppable TV formats create new revenue streams. - Connected TV advertising exceeds USD 30 billion annually. - Smart TVs held a 45.8% device-type revenue share in 2024. - Digital media streamers are projected to grow at a 13.42% CAGR through 2035. - Video streaming and OTT platforms accounted for 59.7% of application share in 2024. - Gaming and eSports are projected to grow at a 10.06% CAGR, helped by native cloud-gaming apps inside smart TV platforms. - The report includes device segments for smart TVs, digital media streamers, gaming consoles, soundbars and audio, and others. - It also segments the market by connectivity, control interface, application, usage and region. - The report is available as a full PDF sample and as the full market report.

Between the lines: - Matter interoperability is helping reduce the fragmentation that has slowed smart home adoption. - The standard is supported by Apple, Google, Amazon, Samsung and more than 550 Connectivity Standards Alliance member companies. - As more devices gain Matter certification, households may find it easier to add connected lighting, climate, security and entertainment products. - AI is emerging as the main competitive differentiator across connected living room platforms. - Large language model-powered voice assistants, on-device recommendation engines and AI-driven scene automation are turning the living room into a more context-aware environment. - Cloud gaming inside smart TVs is expanding the gaming audience beyond traditional console owners. - Retail media and shoppable TV formats are giving manufacturers and platform operators new ways to subsidize hardware pricing. - Wi-Fi 7 and whole-home mesh networking are supporting more bandwidth-intensive use cases, including multi-device 8K streaming and low-latency cloud gaming.

What's next: - Wi-Fi 6E and Wi-Fi 7 deployment should remain the biggest near-term growth driver for connected living room devices. - More Matter-certified products are likely to lower adoption friction across smart home ecosystems. - AI-native features are expected to become a key battleground for OEMs and platform operators. - The market is likely to see continued first-time adoption in emerging regions as prices fall and broadband access expands. - Asia-Pacific remains the largest regional market, with 40.6% of global revenues in 2025, equal to about USD 26.3 billion. - North America is the second-largest region and is projected to grow at a 5.91% CAGR through 2035. - Europe ranks third, while the Middle East & Africa is forecast to post the fastest regional CAGR at 12.78% through 2035.

The bottom line: - The connected living room market is shifting from a device category into a software- and AI-driven ecosystem, with broadband upgrades and interoperability standards setting up the next phase of growth.