In this report, Arthur D. Little reviews the key trends driving the potential for Smart Home solutions, presents an overview of four main segments and provides recommendations for telecom operators in the launch of Smart Home services. A Smart Home is a home or building that is equipped with a special connected platform enabling its occupants to remotely control and program an array of automated home electronic devices. The Smart Home becomes “intelligent” as it offers a wide array of new applications from home automation (home security, comfort and entertainment), home cloud (management of content, productivity, sensors data used or produced at home), and e-Health services. Major electronics and software companies have offered Smart Home products since the first home automation products in the 1980s. These were followed by integrated media systems, such as Microsoft’s Home Media Center in the 1990s, and then with the first connected appliances, such as the Electrolux Screenfridge, in the 2000s. These solutions initially met with limited success, so why is the Smart Home a hot topic again today? And how should telecom operators position themselves in this growing market?