The Internet of Things Observatory shows that the Italian smart home market grew in 2021: +29% compared to 2020, reaching 650 million euros and exceeding pre-Covid levels. Despite the good results, the growth could have been even higher (+45%) without the shortage of semiconductors and raw materials, which accounted for 75 million euros in lost sales. The market is driven by connected household appliances with a share of 21% (135 million euros) and a growth rate of +35%, thanks to a progressive expansion of the offer and sales boom of some types of small household appliances such as robot vacuum cleaners and air purifiers. Smart speakers (130 million euros), security solutions (125 million), and connected boilers, thermostats and air conditioners (110 million) follow. At a European level, the United Kingdom (4 billion euros, +43%) and Germany (3.9 billion euros, +37%) lead the market. Italy shortens its distance from France (1.3 billion euros, +16%) and increases its gap compared to Spain (480 million euros, +14%). Besides, the evolution of the enabling technologies for the smart home continues. In particular, in 2021 the effort of the Connectivity Standard Alliance (CSA) was consolidated towards the drafting of the Matter specifications, the new protocol for the interoperability. The first “Matter-compliant” products are probably expected by the end of 2022.