Authors: Elnaz Afshar, Elif Gönen, March, 2025
1 Description and History
There have been significant advances in computer science throughout the last few decades, particularly in the area of accessing and utilizing the Internet. Practically every modern activity these days involves using Internet-related services. Internet of Things (IoT) services have become increasingly ubiquitous in our lives in recent years.1
Any device that claims to have some degree of artificial intelligence has been referred to as a “smart.” In order to respond appropriately, smart technology needs to be able to collect information from its surroundings. The well-being of humanity is now the primary goal, and smart technology is the primary engine behind innovative concepts.2
The term “smart” has been used in a number of contexts, including smart homes, smart TVs, smart phones, and smart learning. It generally implies “intelligent,” yet each concept has a slightly different meaning.3
The term “smart home” was first defined by Lutolf. Lutolf claims that the integration of multiple amenities within a house through a shared communication system is the “smart home concept.” It offers a high level of intelligent functionality and flexibility.4
A smart home, as defined by Berlo and Allen (1999), is an environment where devices and systems are automatically controlled, including appliances, lighting, climate, and security. Balta-Ozkan et al. (2013) describe it as a tech-enabled residence with sensors and remote monitoring that adapts to its inhabitants’ needs.5
Smart homes enhance comfort, security, and energy efficiency through context awareness, remote control, and ambient intelligence. They allow users to manage appliances remotely and optimize electricity use while improving security with advanced monitoring and access management.4
The category of smart computing known as “smart home systems” (SHSs) deals with incorporating smart technology into homes to provide convenience, healthcare, safety, security, comfort, and energy efficiency. The quality of life is improved by smart homes, which allow remote and automated appliances control and services.2
Since the beginning of time, people have relied on their homes as a place to reside. When electricity was introduced into homes in the late 19th century, it caused an evolution in the type of services that might be provided by the home. The introduction of electric distribution networks in 1883 allowed for the domestic use of electric heat and light. The electric iron (1909), clothes washers (1910), air conditioners (1911), vacuum cleaners (1908) … quickly followed. Every one of these appliances improved the services that the house offered its residents.6
The concept of smart homes initially developed in the 1970s with the introduction of X10, a platform for home automation that uses radio frequency bursts to transmit digital data onto an existing electrical wiring system in a house. However, until 1984, there weren’t many complete cases of smart house technologies. United Technology Corporation (UTC) was the first company in the United States to use the term “intelligent building” in the 1980s. This idea was used by UTC subsidiary “building systems” to complete a partial renovation project at the CityPlace Building in Hartford, Connecticut. The first architectural project in history to incorporate information technology into a structure is the CityPlace Building, which uses a computer system to monitor and control the building’s lighting, elevators, air conditioning, and other equipment while offering information services such as voice communication, email, and intelligence materials.7 Figure 1 shows different smart areas in a house.
According to Furszyfer Del Rio and associates, in order for a SHT(smart home technology) to be considered “smart,” it must have four of the following characteristics: 1. have a digital connection; 2. give users more control; 3. allow automated procedures; and 4. contain the capacity for learning. 8
Smart Home Environments (SHE) offer versatile applications, primarily in home care for the elderly, energy efficiency, entertainment, and security. These areas often overlap, enhancing overall convenience, sustainability, and safety.9
For instance, in elderly section, by 2050, 20% of the world’s population will be over 60, with many facing long-term illnesses and difficulty living independently. The WHO reports 650 million people with disabilities globally, making long-term hospital or assisted living care impractical. Integrating assistive technology and healthcare services into homes offers a sustainable solution.4
2 Economic Performance
The smart home industry has grown significantly in recent years, mainly due to advancements in the Internet of Things (IoT), artificial intelligence (AI), and automation technologies. Market research indicates that the industry’s value reached USD 79.16 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 27.07% between 2023 and 2030. 10 Among the leading markets, the United States and China dominate the industry, driving global adoption and technological innovation.10
Smart homes integrate interconnected devices, sensors, and systems that can digitally communicate, monitor, and exchange data while allowing remote access and control.11
These interconnected systems enable seamless automation of various household functions, such as climate control, lighting, and security, enhancing both comfort and energy efficiency.12
One of the most significant impacts of smart home technology is its role in energy management, addressing concerns about rising energy consumption.13
The U.S. Energy Information Administration (EIA) reports that the residential sector consumes nearly one-third of the nation’s total energy. This consumption is gradually rising, creating challenges for both energy regulators and suppliers. To address the increasing demand, it is essential to focus on optimizing energy systems, particularly from the demand-side perspective.14
Government policies are playing a significant role in the widespread deployment of smart energy meters across the European Union (EU). As energy consumption continues to rise, smart meters have become a key tool in improving energy efficiency and enabling more precise monitoring of usage patterns. The installation of these meters will enable hundreds of millions of households to integrate a crucial element of domestic smart energy systems while also establishing a direct connection to the smart grid .15
A key advantage of smart meter adoption is the potential for cost savings and energy efficiency improvements. On average, smart meters contribute to an annual electricity savings of approximately €270 per metering point, benefiting consumers, suppliers, and distribution system operators alike. Additionally, pilot projects have demonstrated that smart meters can lead to energy reductions ranging from 2% to as much as 10%, highlighting their role in optimizing energy consumption and reducing overall demand.15
Smart meters can also play a crucial role in demand-side management, particularly in regions where heating accounts for a significant portion of household energy consumption. In Finland, for instance, home heating and hot water usage make up 83% of total residential energy consumption, with nearly half of all detached houses relying on electric heating. Managing heating demand during winter peak consumption periods presents a valuable opportunity for optimizing energy use and reducing strain on the power grid. By integrating smart metering systems, households can better regulate heating schedules, shift consumption to off-peak hours, and improve overall energy efficiency and cost-effectiveness.16-18
3 Ecological Performance
The academic field of ecology studies the interactions between populations of living things and their environment. We must investigate the relationship between the habitant and its inhabitants in order to understand the ecology of the smart home.6
The concern of climate change is global. As a direct result of human activity, the global climate system is changing, leading to the greatest emissions of greenhouse gases (GHGs) in human history. According to studies, extreme weather and modifications to human and ecological systems are caused by GHG.19
Humanity faces a threat of global warming, which is caused by human-generated CO2 and other greenhouse gas emissions. More than 17% of CO2 emissions worldwide come from the residential sector. In China—the second most populated developing nation in the world—between 35 and 40 percent of total CO2 emissions come from household consumption. It has been suggested that using digital technology to lower carbon emissions without compromising wellness could give consumers access to new and better smart homes.19
The real potential for smart home energy savings is in lowering consumption through improved control. For instance, 80% of residential energy use in the US occurs in single-family houses. With smart energy efficiency improvements, these homes have tremendous possibilities for gas and electricity savings. Most household energy end uses are powered by electricity, which is used only for household cooling and for some space and water heating requirements.20
Artificial Intelligence of Things (AIoT) is a new digital technology that is being utilized in smart homes at an increasing rate in recent years. Home security, entertainment, health care, energy management, and temperature control are just a few of the features that Smart Homes may provide to meet everyday demands. These functions not only improve the life quality of occupants, but they are also environmentally friendly.19
For instance, solar energy has frequently been used in smart homes to replace the use of natural gas and electricity. In addition to avoiding environmental pollution, solar energy can help overcome the limitations of traditional gas and electricity. Through such, the energy consumed by different Internet of Things apps is supplied, enabling more environmentally responsible consumption of energy.21
In order to construct the future smart grid, the residential sector must play a crucial role in lowering carbon emissions. The most significant effort should be put into upgrading buildings in order to reduce CO2 emissions in the residential sector. It is necessary to emphasize how technology affects CO2 emissions. Therefore, improvements in technology have a significant impact on the residential sector’s overall CO2 emissions. In Finland, lighting accounts for more than 30% of all household appliance electricity use.22
According to a US Department of Energy report (DOE, 2002), broad use of wireless sensors is expected to lower emissions by 25% and increase manufacturing production and energy efficiency by 10%.23
These are a few outcomes, assessed how much energy a variety of smart appliances used in both standard and energy-efficient setups. The results demonstrated that energy-efficient settings led to significant reductions in energy use:24
Smart Refrigerators: As in energy-efficient mode, smart refrigerators displayed an average 10% reduction in energy consumption when compared to normal settings. Better insulation and the application of advanced compressor algorithms were major factors in this decrease.24
Smart Washing Machines: Smart washing machines with load optimization features showed a 15% reduction in energy consumption while in energy-efficient mode. These devices’ smart changes to water levels and wash cycles conserved energy.24
Smart Ovens: Smart ovens with improved insulation and a warmup period had an average 12% lower energy consumption while in energy-efficient mode. These ovens produced tasty cuisine with low energy usage.24
Smart Thermostats: Smart thermostats maintain desired comfort levels by effectively controlling interior temperature. When combined with occupancy patterns and meteorological information, these thermostats were able to reduce the average temperature by 1°C during periods when nobody was using them, saving energy without sacrificing comfort. 24
Smart refrigerators, washing machines, and ovens all demonstrated notable energy savings when operated in energy-efficient settings. These reductions, which typically range from 10% to 15%, show that considerable energy savings are achievable without compromising functionality.24
Additionally, through the transmission of information, internet use improves environmentally friendly behavior. Finally, AI-powered smart gadgets usually have great energy-saving features that allow intelligent “hibernation” of household devices, eliminate human errors, and optimize energy efficiency.19
The energy flow and management system in a smart house is shown in figure 2.
Although energy efficiency in theory can result in significant savings, it also has a negative impact on energy usage and frequently has rebound effects. These days, the phrase “rebound effect” is used more frequently. When discussing rebound effects in the original energy context, several kinds of processes are used to negate the potential energy savings of energy efficiency measures. The time that is saved by a technology can be used for energy-intensive activities. The balance could remain beneficial even when the rebound effect is significant, resulting in an overall decrease in energy or resources. In the specific case where the rebound effect overcomes the early benefits and causes an increase in total energy usage, , is often referred to as ‘Jevons’ Paradox’or ‘Khazzoom-Brookes postulate.25
Undoubtedly, smart houses have both positive and negative aspects when it comes to energy conservation. For instance, consumers could use the Internet of Things (IoT) to remotely operate household equipment. It is possible to prevent electricity waste by allowing customers to remotely turn off devices like televisions and lighting. In addition, certain smart gadgets have “monitoring” and “sensing” capabilities that allow them to measure power consumption, sending real-time data to a smartphone to help users break patterns of energy waste.19
When it comes to energy efficiency in smart homes, rebound effects can cause energy consumption to either rise or fall less than expected. Importantly, this phenomena results from the interaction of technological features with cultural, social, psychological, and economic factors.25
Despite this, smart homes increase electricity consumption and offer convenience, comfort, and security by equipping homes with an excessive number of smart devices. When non-electronic things are made “electronic” by the trend of intelligence, home devices are forced to operate in standby mode for longer periods of time, consuming more energy.19
4 Social Impact
One of the key advantages of IoT in residential settings is the enhanced ease of use it provides. Smart home systems, such as automated temperature control, lighting, and virtual assistants, can be efficiently operated through voice activation or mobile applications. This effortless interaction enables residents to manage household functions, such as adjusting indoor climate or controlling lighting, without the need for physical switches. The integration of voice-activated controls particularly benefits individuals with limited mobility, offering greater accessibility and convenience in daily tasks.20
Elderly individuals and people with disabilities often face greater challenges in daily life compared to others. As the proportion of older adults in the global population continues to rise, the demand for accessible living environments becomes increasingly important. According to a United Nations report, the share of individuals aged 60 and above is expected to double between 2007 and 2050, reaching 2 billion by mid-century.26
Smart home technology can help create safer and more supportive living environments by offering enhanced security, automation, and monitoring capabilities. These systems enable users to control various household functions or set them to operate automatically. Additionally, smart home technology can detect potential hazards and send alerts to prevent accidents. For instance, individuals with hearing impairments may struggle to notice a doorbell, while those with Alzheimer’s disease might forget to turn off the stove. By integrating smart home solutions, these difficulties can be effectively managed, improving safety and independence.24
While smart home technologies offer significant benefits, accessibility barriers remain a challenge, particularly for individuals with disabilities. Although these innovations have the potential to improve the quality of life and independence of people with disabilities, research indicates that their engagement with new technologies remains limited.27
One of the main obstacles is the socio-economic constraints that many individuals with disabilities face, making it difficult to afford and adopt smart home solutions. Additionally, the design of user interfaces and interaction methods in digital technologies often lacks inclusivity, posing challenges for individuals with physical and cognitive impairments. As a result, disability status is a key factor that influences individuals’ ability to effectively utilize and benefit from smart home technology.28
5 Political and Legal Aspects
Smart home appliances control two types of data. The first type of data is administrative data, which is used to describe user information in general. Additionally, the second data consists of highly private information and/or user privacy that the device will generate in order to function effectively. For instance, this information includes sound, behavior, and photos, and it is gathered from the regular use of smart home appliances.29
Although IoT is becoming increasingly beneficial and efficient, it also presents a number of difficulties, particularly regards to data protection and compliance. Each IoT device is a possible point of entry for security risks and contains sensitive data, such as private information, confidential company data or extremely sensitive data like medical records.In the Internet of Things, data privacy refers to the ethical and legal management of personal data. IoT devices raise the danger of violations of privacy since they gather enormous amounts of data, sometimes without the users’ knowledge or agreement.30
As diverse as the technology itself, the legal frameworks regulating IoT span multiple nations, each with its own set of standards and regulations. These rules are intended to solve the common issues that the Internet of Things presents on a global scale, including data security, privacy protection, and cross-border data flows. Businesses and consumers must, however, negotiate a complicated patchwork of regional rules in the lack of a single, global standard for IoT security and privacy.30
In the field of IoT, several important rules and regulations have become standards:
In Europe, the General Data Protection Regulation (GDPR): One of the strictest privacy and security rules in the world is GDPR. It places duties on businesses worldwide as long as they target or gather information on EU citizens. With its strict consent requirements, rights for data subjects, and sanctions for non-compliance, GDPR has set a high standard and impacted IoT operations globally.30
In California, USA, the California Consumer Privacy Act (CCPA): California have a right under the CCPA to know what personal data a company gathers about them as well as reasons. Additionally, even in cases where there is no breach, this law permits customers to bring claims against businesses for violating their privacy policies.30
In Canada, the Personal Information Protection and Electronic Documents Act (PIPEDA) regulates the collection, use, and disclosure of personal data by private sector entities engaged in commercial activities. It also offers recommendations for IoT device security.30
An international overview of smart home privacy laws is shown in figure3.
Government regulations are essential for promoting the use of smart technology and sustainable building techniques. The green construction industry has grown in industrialized countries because of financial support systems, tax incentives, and regulatory frameworks. However, policy support is frequently missing or absent in developing countries. there is a major gap between the need for sustainable construction regulations and how they are actually implemented in developing nations.31
When policies do exist, they are frequently out-of-date, ineffectively carried out, or lack the funding they need to be successful. There are, however, a few examples of progress. South Africa, for example, has established a Green Building Council that certifies green buildings and encourages sustainable building methods. Governments in countries such Kenya and Nigeria are also starting to implement construction rules that take sustainability concepts into account. These efforts, while encouraging, must be expanded with greater enforcement, financial incentives, and public awareness campaigns to guarantee widespread adoption.31
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