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What is a smart home? Everything you need to know

By Paul Kirvan

A smart home is a residence that uses internet-connected devices to enable the remote monitoring and management of appliances and systems, such as lighting and heating.

Smart home technology -- also often referred to as home automation or domotics from the Latin word "domus," meaning home -- provides homeowners security, comfort, convenience and energy efficiency by letting them control smart devices, often using a smart home app on their smartphone or another networked device.

A part of the internet of things (IoT), smart home systems and devices often operate together, sharing consumer usage data among themselves and automating actions based on the homeowners' preferences.

How does smart home technology work?

A smart home isn't a collection of disparate smart devices and appliances, but rather ones that work together to create a remotely controllable network.

All devices -- such as lights, thermostats, security systems and appliances -- are controlled by a primary home automation controller, often called a smart home hub. This hub is a hardware device that acts as the central point of the smart home system and can sense, process data and communicate wirelessly. It combines all the disparate apps into a single smart home app that homeowners can control remotely.

Examples of smart home hubs include Amazon Echo, Google Home and Wink Hub. While many smart home products use Wi-Fi and Bluetooth to connect to the smart home network, others depend on wireless protocols such as Zigbee or Z-Wave.

The figure below presents a basic smart home, using either a smart home gateway or a wireless base system, to link devices together and to the Internet.

Smart home devices can be programmed to follow specific schedules or commands or set to respond to voice commands through home assistants such as Amazon Alexa or Google Assistant. For example, a smart thermostat can learn the homeowner's habits and automatically adjust the temperature based on their specific schedule.

Examples of smart home technologies

Nearly every aspect of life where technology has entered the domestic space -- including lightbulbs, dishwashers and other appliances -- has seen the introduction of a smart home alternative. The next figure depicts the many types of activities that can be addressed by a smart home system. This section will look at smart home systems and devices:

Smart home devices

Smart home systems

Smart home pros and cons

Smart technology offers numerous advantages, ranging from the convenience of running household appliances such as the washing machine while at work to the comfort of remotely adjusting the thermostat on a chilly winter day.

Pros of a smart home

Advantages of smart home technology are many, and the technology has been proven over many years. The following are some key benefits:

Cons of a smart home

However, home automation systems have struggled to become mainstream, in part due to their technical nature. Common drawbacks of a smart home include the following:

How to set up a smart home

Newly built homes are often constructed with a smart home infrastructure in place. Older homes, on the other hand, can be retrofitted with smart technologies.

Zigbee and Z-Wave are two of the most common smart home communications protocols in use today. Both use mesh network technologies and short-range, low-power radio signals to connect smart home systems. Though both target the same smart home applications, Z-Wave has a range of 30 meters versus Zigbee's 10 meters, with Zigbee often perceived as the more complex of the two. Zigbee chips are available from multiple companies, while Z-Wave chips are only available from Sigma Designs.

Also, Matter, a smart home standard that launched in 2022, continues to gain momentum. Developed by the Connectivity Standards Alliance -- previously the Zigbee Alliance -- Matter is supported by major smart home manufacturers including Amazon, Apple and Google. This IP-based protocol is specifically designed to solve the compatibility challenges of smart homes, providing a framework that facilitates seamless communication across devices, apps and cloud services.

Thread is another interoperability standard for smart homes. Developed in 2014, it is similar to Zigbee, operating as a low-power mesh network in the 2.4 GHz band with a service range of 20-30 meters. It is internet addressable, using the IPv6 and TCP protocols, as well as self-healing.

Some smart home systems can be created from scratch, for example, using a Raspberry Pi or other prototyping board. Other systems can be purchased as a bundled smart home kit (e.g., Apple's HomeKit) -- also known as a smart home platform -- that contains the pieces needed to start a home automation project.

While setting up a smart home can sometimes be complex, homeowners should consider the following general steps:

  1. Invest in a strong, reliable internet connection. Because smart home connectivity relies heavily on an internet connection, it's important to ensure the homeowner has reliable and fast internet service.
  2. Select the hub. It's important to decide which hub to use for a smart home. For example, if the homeowner wants a fully automated smart home, a hub that can centrally control every device is most likely required. However, in other cases, a virtual assistant that can link to other devices on the same network could suffice. Most average hubs might not include extra capabilities such as built-in voice control, even if they're compatible with a wide range of devices. On the other hand, smart speaker hubs, such as Amazon Echo, let users provide voice commands and accomplish various tasks, such as inquiring about the weather or requesting a grocery list.
  3. Start with the basics. Start with basic items such as smart plugs, smart bulbs and switches for the smart home, as they're quick to set up and can easily automate many different things around the house. For example, smart plugs can automate fans, lights, lamps, slow cookers, curling irons and space heaters.
  4. Secure the devices. Because most IoT and smart home devices don't have built-in security or encryption, it's important to set up strong passwords and multifactor authentication to prevent unauthorized access to these devices.
  5. Add more devices. As the homeowner becomes more comfortable with creating a smart home, they can add more devices, such as security systems, cameras and video doorbells, to the mix.

In simple smart home scenarios, events can be timed or triggered. Timed events are based on a clock, for example, lowering the blinds at 6 p.m., while triggered events depend on actions in the automated system; for example, when the owner's smartphone approaches the door, the smart lock unlocks and the smart lights go on.

Machine learning and AI are becoming increasingly popular in smart home systems, enabling home automation applications to adapt to their environments. For example, voice-activated systems, such as Amazon Echo or Google Home, contain virtual assistants that learn and personalize the smart home to the residents' preferences and patterns.

Smart buildings

Enterprise, commercial, industrial and residential buildings of all shapes and sizes -- including offices, skyscrapers, apartment buildings and multi-tenant offices and residences -- are deploying IoT technologies to improve building efficiency, reduce energy costs and environmental damage, ensure security and improve occupant satisfaction. The image below depicts a smart building architecture.

Many of the same smart technologies used in the smart home are also deployed in smart building technology, including lighting, energy, heating and air conditioning, and security and building access systems.

For example, a smart building can reduce energy costs using sensors that detect how many occupants are in a room. The temperature can automatically adjust, turning on cool air if sensors detect a full conference room, or turning the heat down if everyone in the office has gone home for the day. Such systems can also use light and heat sensors to raise or lower sunshades in sun-facing rooms, especially conference rooms where many people can gather.

Smart buildings can also connect to the smart grid. Here, smart building components and the electric grid can talk and listen to each other. This technology can manage energy distribution more efficiently, handle maintenance proactively and power outages can be responded to more quickly.

Beyond these benefits, smart buildings can provide building owners and managers with predictive maintenance. Janitors, for example, can refill restroom supplies when usage sensors monitoring the soap or paper towel dispensers indicate they are low. Maintenance and failures can also be predicted in building refrigeration, elevators and lighting systems.

The origins of the smart home

Smart home technology has come a long way in the past few decades. The following timeline shows significant events in the history of smart home technology:

The future of smart homes

Future developments in smart device technology will combine language models and virtual assistants, such as ChatGPT. Some companies are already using this technology to build their own personal assistants, while Amazon is currently working on a large language model (LLM) to improve Alexa.

Further developments in smart home technology in the coming years are expected to include the following:

Smart home ecosystems of the future will be able to adapt to just about any requirement a homeowner needs while protecting privacy and the environment.

When selecting the appropriate IoT communication protocol, it's important to recognize that not all protocols fit every device or deployment. Explore top IoT protocols and standards to find the best one for your needs.

31 Jul 2025

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