Australia Smart Home Market Hits $7.7 Billion in 2025

Rising energy costs and government incentives for battery systems fueled a significant growth in the national market.

Updated on Oct. 20, 2026 in Home Entertainment

Bold vector editorial illustration of a home battery unit on an exterior wall, representing Australia's residential energy management market. — Australian households invested $7.7 billion in smart home and battery storage technology in 2025 to mitigate rising national energy costs. AI Illustration. Upload story photo >

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The Australian smart home market reached a valuation of $7.7 billion in 2025, driven largely by high demand for residential battery technology. As of June 2026, 86 percent of Australian households owned at least one smart home product.

Why it matters

Households are increasingly prioritising energy management to combat rising costs, shifting spending away from entertainment hubs towards storage solutions. Government incentives for battery systems have played a central role in this rapid transformation of the domestic sector.

Smart battery systems accounted for two-thirds of total market revenue in 2025, marking a 396 percent year-on-year increase. Meanwhile, revenue from smart hubs and speakers declined by 32 percent during the same period.

The details

Australian households now predominantly connect their devices using smartphones, tablets, smart TVs, and speakers via Wi-Fi networks. The average annual budget allocated for these smart home technologies grew by over $1,300, reaching more than $3,500 in 2026.

2024 served as the baseline year for recording adoption and budget metrics.
The Australian smart home market reached a $7.7 billion valuation in 2025.
As of June 2026, 86 percent of households owned at least one smart product.
Market revenue is forecast to exceed $11 billion throughout 2026.
Battery share of market revenue is expected to moderate by 2029.

Culture Shift

The transition reflects a departure from simple entertainment-focused smart devices toward essential home infrastructure. This shift is anchored by the Australian government battery incentive programmes, which have fundamentally reshaped household investment patterns.

Consumers should expect to see continued integration of smart energy management tools into daily routines to offset rising utility bills. With average budgets climbing to $3,500, households are increasingly prioritising long-term savings over smaller smart device purchases.

The takeaway

The move toward automated energy storage signals a practical evolution in how residents manage their domestic finances. Homeowners can improve their long-term cost efficiency by aligning smart technology investments with current energy management incentives.