It’s amazing how fast technology is changing. Just look: in 2024, the smart home market has reached $154.4 billion. And only a few years earlier, in 2018, it was three times less at $52.9 billion.
The first concept of smart home development emerged in the 1990s. Today, the term “smart home” is familiar to almost everyone. It’s a solution that makes our lives easier!

Smart Home Market Revenue

Table of Contents

• What are smart homes?
• How does smart home technology work?
• Examples of smart homes
• Top IoT sensors to consider
• Smart home protocols
• Security considerations
• Cost considerations
• Partnering with RewiSoft for smart home tech solutions

This article answers all of these questions!

Definition of Smart Home Technology

When you integrate Internet-connected devices and home systems for remote monitoring, control, and automation of different household functions, it’s called Smart home technology.

Such technology helps optimize home processes, even remotely. So you can manage your living environment through a smartphone, tablet, or voice assistant such as Amazon Alexa or Google Assistant.

Smart home technology works through the Internet of Things (IoT), where everyday devices are embedded with sensors, software, and network connectivity.

How does smart home technology work?

Let’s see the basic process of how it works. 

1. Smart devices have sensors that collect info and then transmit this info to the cloud via WI-FI or another network.
2. You can see all the collected info and control these devices through a central hub/application, etc. The hub (or app) acts as a command center, allowing you to control and automate various devices from a single interface.
3. You can set up routines or schedules. For example, you can automatically turn on the lights at sunset or the thermostat to adjust the temperature when you leave the house.
4. Many smart home systems are compatible with voice assistants such as Alexa, Google Assistant, or Siri. With voice assistance, you can control devices simply by speaking commands.
5. Even when you are not at home, you can remotely monitor and control your devices through the app.

There are hundreds of Smart home solutions. Let’s see the most often-used ones:

Smart security systems

Smart security has become a revolution that offers safety to homeowners even when they are far from home! Anytime, anywhere, control what happens in your home. You can use monitor detectors and smart locks.

Smart lights

You can control the brightness of your lighting, choose the color, and schedule the time when to turn the light on. Smart lighting solutions let you do it all. You can set it to turn on or off at specific times or control it with voice commands.

Smart speakers

Twenty years ago, when you watched some Hollywood movies and the main characters turned the light with their voices, it seemed impressive! But today, everyone can afford it. With Smart voice control, you can control other smart devices, play music, turn on the light, get weather updates, and more!

Smart thermostats

Optimize the temperature in your house with a Smart thermometer solution. It helps adjust the temperature according to your preferences and habits. 
Even if you are far from home, the application allows you to choose the optimal temperature in advance and even schedule it to optimize heating and cooling.

Smart home appliances

You can turn on washing machines, dishwashers, air conditioners, etc., from your home, even if you are far from it. In the application, you can choose the washing mode, control all the processes, see how much time is left, etc.

Smart locks

You can lock and unlock doors anywhere. Also, you can provide temporary access to guests and keep a log of who enters and leaves your home.

Smart cameras

Smart cameras provide real-time video streaming and can alert you to any suspicious activity in your home. Pet owners like such solutions the most, as you can control your pet’s recovery and check if everything goes well!

Smart Irrigation Systems

Smart Irrigation Systems help optimize watering schedules based on weather forecasts and your garden’s needs. It helps save water and keep your plants healthy.

These examples illustrate how smart home technology can improve processes in your home. 

Top IoT Sensors to Consider

There are many different types of sensors, each tailored to specific business needs. Based on their functions, here are the top sensors for different solutions that will be required.

What is an IoT Sensor?

An IoT sensor is a tool integrated into a device. It gathers information such as air temperature, light, water temperature, etc., and then transmits this information to the cloud via Wi-Fi or other internet connection. Thanks to internet sensors, users can control home processes remotely.

What are the most common sensors to include in your home?

Smart Cameras
Smart cameras are the most popular tool for almost any home security system, recording both visual and audio data.

Door and Window Contact Sensors
Used to detect the opening and closing of doors and windows.

Motion Sensors
Detect movement and changes in the movement of an object relative to a certain area.

Sound and Noise Sensors
Measure sound levels and patterns.

Vibration and Shock Sensors
Detect vibration or shock to alert of break-ins or tampering.

What are the most common health and safety sensors?

Smart home devices should help take care of its residents’ health and safety. Several unforeseen situations may arise, such as burst water pipes or fire. But if you react in time, the negative consequences will be minimized. Here are the key sensors for this:

Gas Detectors
Detect harmful gas

CO2 (Carbon Dioxide) Sensors
Measure the level of carbon dioxide in the room.

Smoke and Heat Detectors
Detect smoke and increase in temperature.

Water Flow Sensors
Detect moisture and water flow.

Flood Sensors
Detect water accumulation and indicate increasing levels of danger.

What are the most common cost saving sensors?

Finally, smart home devices help with comfort and cost savings in everyday life. To make life comfortable and economical, smart devices are equipped with climate control and energy-saving data collection sensors:

Temperature and Humidity Sensors
Measure ambient temperature and humidity levels.

Light Sensors (Photoresistors)
Detect changes in light intensity.

Presence Sensors
Detect the presence or absence of people.

Proximity Sensors
Detect whether an object is within range or whether to open an automatic door.

Thanks to these sensors, the location of residents within the building, environment, and lighting will be regulated in real-time.

Using automation systems, a smart home will create the most comfortable living conditions while saving resources.

Smart Home Protocols

A smart home protocol is a set of rules that allows different smart devices in your home to communicate and work together, even if they are made by other companies.

Smart Home protocol ensures that devices can operate together smoothly.

The most common smart home protocols are Wi-Fi, Bluetooth, Ethernet, Thread, and Matter. Z-Wave and ZigBee:

Wi-Fi 

Wi-Fi is the most commonly used technology. It connects devices to a network using radio waves. Wi-Fi complies with the IEEE 802.11 standard and operates in frequency bands such as 2.4 and 5 GHz. 

Bluetooth and Bluetooth Low Energy (BLE)

Those smart technologies are designed for low-power devices. They work at the 2.4 GHz frequency band, enabling devices to transmit and receive data wirelessly over short distances.

Zigbee

Zigbee is a protocol that is mainly used for short-range devices. It is a low-power, wireless communication protocol that operates at 2.4 GHz and uses a mesh network structure where devices act as nodes, expanding network coverage. If a node fails, the network can automatically adjust to maintain connections.

Ethernet

Ethernet is a protocol that is mainly used for local area networks (LANs). It transmits data quickly through twisted pair and fiber-optic cables, adhering to the IEEE 802.3 standard, and ensures reliable and secure data transmission.

Z-Wave

Z-Wave is one more wireless communication protocol operating below 1 GHz (sub-GHz) that provides reliable and secure communication between devices. Z-Wave devices also form a mesh network, where nodes help expand coverage and maintain connections if a node fails.

Thread

Thread is a wireless communication protocol that operates over IPv6 at the 2.4 GHz frequency and also uses a mesh network topology.

Cost Considerations in Smart Home Development

At RewiSoft, developing a basic smart home app can start from $30,000. 

Factors that impact the overall cost:

Sensors

Basic sensors, like motion detectors, are generally less expensive than advanced sensors and multi-function environmental sensors.
Also, the number of sensors needed will directly influence the cost. More sensors mean higher expenses.

Feature Set

Special Features: Sensors with additional features, such as enhanced range, accuracy, or durability, can add to the cost.

Protocols

The choice of communication protocol (e.g., Wi-Fi, Zigbee, Z-Wave) affects cost. Some protocols require more expensive hardware or infrastructure.

Sm Technologies

Incorporating advanced automation, AI, and machine learning features affects the development costs due to the need for more sophisticated software and hardware.

Security Features

Encryption, secure communication protocols, and firewalls, that business needs affect the costs.

Steps to Develop a Custom Smart Home Solution

Before starting the development process, let’s check how carefully you’ve read the material. Try to answer the following questions. Only when you understand these definitions can you better understand the development process:

• How does smart technology work?
• What are IoT sensors?
• What are smart home protocols?

Have you answered most of them? If yes, let’s move on to the development process. If not, try reading more carefully before continuing.

9 Steps to develop a Smart Home Solution:

1st step – Validate your Business Idea

Identify the specific needs and goals that your smart home needs to solve, such as security, energy efficiency, or automation preferences.

2nd step – Choose the Protocols

As we mentioned above, different types of protocols can be used. Select the communication protocols that best suit your project’s needs: Wi-Fi, Bluetooth, Zigbee, etc.

3rd step – Select Smart Devices

Select sensors (Motion sensors, smooth sensors, etc.) that are compatible with your chosen protocols and meet your requirements.

4th step – Start UX/UI design

Create a design system that makes it easy to use and visually stunning.

5th step – Develop or Integrate a Hub

At this stage, you can create or choose a smart home hub to control and manage all devices from a central interface.

At development stage, follow this checklist:

• Choose technologies
• Set up architecture
• Implement product functionality according to design and SRS documentation
• Set up CI/CD

6th step – Test

Thoroughly test the system for functionality, security, and user experience. Make adjustments as needed.

7th step – Implement Security Measures

Ensure the system is secure by implementing encryption, strong passwords, and multi-factor authentication.

8th step -Deploy and Maintain

Install the system in the home, provide training if necessary, and establish a plan for regular updates and maintenance.

Develop Your Smart Home System with RewiSoft

We believe that our smart home guide will help you answer the question of how to build a fully smart home.
Our team has deep expertise in developing IoT smart home solutions and will happily assist you with development and provide consultation at each stage.

Check out our work: https://rewisoft.com/cases/

Let’s create great solutions together!