Samsung’s 2025 Playbook: How SmartThings is Dominating Home Energy Management
Industry Adoption: Samsung’s Shift from Connected Devices to Grid-Integrated Ecosystems
Between 2021 and 2024, Samsung methodically laid the groundwork for its dominance in smart home energy management. The strategy centered on scaling its SmartThings platform, which surpassed 70 million active users by late 2021, and establishing credibility. The pivotal moment came on January 4, 2023, when SmartThings earned the first-ever ENERGY STAR certification for a Smart Home Energy Management System (SHEMS) from the U.S. EPA. This legitimized the platform not as a gadget but as a verifiable energy-saving tool. During this period, adoption was driven by integrating Samsung’s own energy-efficient appliances and forging foundational partnerships with solar providers like Qcells (2021) and Maxeon (2023), and building automation leader ABB (2022). The focus was on creating a self-contained “Net Zero Home” concept, a powerful but largely insular ecosystem.
The landscape has dramatically shifted in 2025. Samsung is aggressively expanding beyond the home, transforming SmartThings from a consumer product into a universal, grid-integrated platform. This is evidenced by a strategic pivot towards B2B applications with SmartThings Pro, now being deployed in commercial spaces and integrated into Kia’s purpose-built vehicles. Partnerships have evolved from simple integrations to deep collaborations with infrastructure giants like Siemens and energy management specialists like ABB, whose InSite system is now integrated into SmartThings Pro. The launch of demand response programs and a flurry of B2B-focused alliances, including a joint venture with HVAC leader Lennox and a major acquisition of FläktGroup, demonstrate a clear inflection point. Samsung is no longer just selling connected devices; it is building a comprehensive platform to manage energy across residential, commercial, and mobility sectors, creating new opportunities in virtual power plants (VPPs) and enterprise-level facility management.
Table: Samsung’s Strategic Investments in Foundational Energy and AI Technologies
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Domestic Investment in Core Technologies | November 17, 2025 | Part of a combined ₩575 trillion (approx. $415B) investment with Hyundai to bolster South Korea’s industrial base. Samsung’s portion focuses on foundational technologies like chips and AI, which are critical for advancing the intelligence and efficiency of the SmartThings platform and AI Energy Mode. | Samsung and Hyundai Domestic Investment Surge in … |
| Investment in AI R&D | November 17, 2025 | A significant portion of a reported $310 billion investment is aimed at accelerating R&D and manufacturing in homegrown AI. This capital is essential for improving the machine learning algorithms that power energy optimization in both consumer (SmartThings) and network (AI-ESM) applications. | Samsung Plans $310B Investment to Supercharge Its … |
| Investment in Emerging Green Technologies | September 10, 2025 | Confirmation of dedicated investments in technologies to reduce emissions, conserve water, and lower power consumption in operations and products. This directly funds the development of more efficient hardware and smarter energy management features for the SmartThings ecosystem. | Samsung in America: 2025 Environmental Toolkit |
| Reduction in Memory Business CAPEX | April 23, 2025 | A strategic decision to pull back capital expenditure on wafer capacity in the core memory business to improve profitability. This move potentially frees up capital for reinvestment into higher-growth sectors like the AI and IoT platforms that underpin Samsung’s smart home strategy. | Highlighted Holding: Samsung Electronic | Insights |
| Proposed CHIPS Act Investment | April 2024 | The U.S. government announced preliminary terms for up to $6.4 billion in direct funding to expand Samsung’s semiconductor manufacturing in Texas. This investment secures the supply of high-performance, energy-efficient chips essential for powering its smart devices and AI platforms. | Biden-Harris Administration Announces Preliminary Terms … |
| Green Initiatives Investment | September 2022 | Samsung committed over 7 trillion won (approx. $5B) by 2030 for environmental initiatives. The capital is designated for R&D in technologies that reduce emissions and improve resource conservation, directly supporting the sustainability goals of its products and the SmartThings platform. | Samsung to Invest $5 Billion Under Plan to Tame Emissions |
Table: Samsung’s Strategic Partnerships for Ecosystem Expansion (2021-2025)
| Partner / Project | Time Frame | Details and Strategic Purpose | Source |
|---|---|---|---|
| Tesla | November 2025 | Integration of Tesla’s solar panels and Powerwall home battery systems with the SmartThings platform. This collaboration is a landmark move to unify energy generation, storage, and consumption under a single interface for homeowners. | Samsung to Integrate Tesla Solar and Powerwall Products … |
| Siemens | November 18, 2025 | A global partnership between Samsung C&T and Siemens to drive next-generation smart infrastructure projects. The collaboration combines Samsung’s EPC expertise with Siemens’ digitalization and automation capabilities for smart buildings. | Siemens and Samsung C&T partner to drive next- … |
| British Gas | November 6, 2025 | Launch of a new tariff and connected home experience leveraging AI for energy monitoring. This partnership directly links the SmartThings platform to a major utility’s customer base, enabling more effective energy management. | British Gas and Samsung Launch New Tariff |
| Solid Power and BMW | October 30, 2025 | Samsung SDI joined a joint evaluation agreement to advance all-solid-state battery technology. While focused on EVs, this has long-term implications for next-generation residential and commercial battery storage solutions integrated with SmartThings. | Solid Power Partners with Samsung SDI and BMW to … |
| Lennox | September 30, 2025 | Formation of a joint venture, “Lennox Powered by Samsung,” to market ductless mini-split and VRF HVAC products in North America. This combines Samsung’s technology with Lennox’s distribution network to capture the energy-efficient HVAC market. | A Game-Changing Partnership for North American HVAC |
| TELUS | September 19, 2025 | Collaboration on Canada’s first AI-powered RAN Intelligent Controller to optimize network energy efficiency. This showcases Samsung’s core AI-driven energy management technology, which is adaptable to the smart home environment. | TELUS and Samsung Collaborate on Canada’s First AI- … |
| Enel | July 14, 2025 | A collaboration to integrate Enel’s energy supply services with Samsung’s smart appliances. The partnership aims to develop innovative household energy management solutions, bridging the gap between utility services and smart home devices. | Enel and Samsung: Innovation for Your Home |
| Hive (British Gas) | June 16, 2025 | Samsung joined the “Works With Hive” network, integrating Samsung heat pump control directly into the Hive App. This streamlines energy management for UK users and deepens penetration into the European heat pump market. | Hive and Samsung announce next stage of partnership, as … |
| FläktGroup | May 2025 | Samsung announced an agreement to acquire all shares of FläktGroup, a leading global HVAC provider, for €1.5 billion. This strategic acquisition significantly strengthens Samsung’s position in the commercial HVAC and smart building market. | Samsung Electronics Acquires Leading Global HVAC … |
| Florida State University & others | March 4, 2025 | Launch of a “Smart Health Home Initiative” to create a real-world testbed integrating Samsung’s smart home and energy management tech into new residential developments to monitor health and well-being. | Florida State University and Samsung launch … |
| Kia Corporation | February 27, 2025 | Partnership to integrate the B2B solution, SmartThings Pro, into Kia’s Platform Beyond Vehicle (PBV). This connects vehicle management with business operations, blurring the lines between mobility and facility management. | Samsung Partners With Kia To Integrate SmartThings Pro … |
| Arlo Technologies | February 27, 2025 | Expanded partnership to enhance home security with AI-powered features within the SmartThings ecosystem, demonstrating a strategy to build a comprehensive smart living platform where energy and security work in tandem. | Press Releases |
| ABB | February 4, 2025 | Integration of ABB’s InSite energy management system into SmartThings and SmartThings Pro. This move bridges residential and light commercial building management for more sophisticated load management. | ABB and Samsung Electronics Enhance User Experience … |
| Sapphire Connected Communities | October 17, 2024 | Integration of SmartThings into multi-family residential buildings, providing smart apartment solutions and centralized property management, a key move into the B2B2C channel. | SmartThings Partners with Sapphire Connected … |
| Leap | July 1, 2024 | Launch of the “Flex Connect” virtual power plant program, enabling users in CA and NY to participate in demand response events, marking a shift from passive monitoring to active grid participation. | Samsung Launches Flex Connect, a Demand Response … |
| Clayton Home Building Group | April 22, 2024 | Samsung becomes the exclusive appliance provider for Clayton, integrating smart appliances into new builds and securing a major channel for mass adoption. | Clayton Home Building Group Enters Home Appliance … |
| Tesla | January 5, 2024 | Initial collaboration to connect Tesla’s Powerwall, Solar Inverter, and EV charging with SmartThings Energy, enabling unified monitoring of home power status. | Samsung Tesla Collaboration, Smart Home Energy |
| Hyundai and Kia | January 4, 2024 | MoU signed for “Home-to-Car” and “Car-to-Home” services, connecting SmartThings with connected cars to optimize energy use between the home and EVs. | Hyundai, Kia and Samsung Electronics to Collaborate on … |
| Eve Systems | December 4, 2023 | Integration of Eve’s Matter-compatible smart plugs into SmartThings, enabling granular, real-time energy monitoring of individual appliances. | SmartThings Partners with Eve Systems to Revolutionize … |
| SMA Solar Technology | September 7, 2023 | Integration of SMA’s home energy solutions into SmartThings Energy, enabling unified control of solar systems and Samsung heat pumps. | Net Zero Homes at IFA 2023: How Samsung, SMA and … |
| Maxeon Solar Technologies | June 14, 2023 | Integration of Maxeon’s SunPower One residential energy solution with SmartThings, allowing homeowners to manage appliance use against solar production. | Maxeon Solar Technologies and Samsung Join Forces on … |
| October 13, 2022 | Expanded partnership to enhance interoperability via Matter’s multi-admin feature, allowing easier control of devices across SmartThings and Google Home ecosystems. | Samsung Electronics Announces Expanded Partnership … | |
| ABB | April 5, 2022 | A global partnership to integrate ABB’s automation solutions with SmartThings, providing jointly developed technologies for energy savings in buildings. | ABB partners with Samsung Electronics to drive holistic … |
| Enersponse | January 13, 2022 | Partnership to provide SmartThings users with access to utility integrations and grid service programs, enabling participation in demand response. | Enersponse Partners With Samsung SmartThings to … |
| Qcells | July 5, 2021 | An MoU to create a “Zero Energy Home” solution by integrating Qcells’ solar and energy storage systems with SmartThings Energy. | Qcells and Samsung Electronics enter into ‘Zero Energy … |
Geography: Samsung’s Targeted Expansion from the US to Global B2B Markets
Between 2021 and 2024, Samsung’s geographic strategy was heavily concentrated on establishing a strong foothold in North America and Europe. The pursuit and achievement of the U.S. EPA’s ENERGY STAR SHEMS certification in 2023 was a clear signal of its focus on the American market. This was reinforced by partnerships with U.S.-based new construction giant Clayton Homes and energy service providers like Enersponse. In Europe, the unveiling of the first “SmartThings home” in Sweden and a key partnership with British Gas in the UK demonstrated a targeted effort to penetrate mature markets with high consumer awareness and regulatory support for energy efficiency. The “Smart City Project” with Siemens, starting in Sterling Ranch, Colorado, marked an early foray into large-scale residential deployments in the U.S.
In 2025, this strategy has evolved into a two-pronged attack: deepening its presence in established markets while simultaneously expanding its B2B footprint into new territories. In North America, the joint venture with Lennox and the TELUS partnership in Canada solidify its position in the critical HVAC and telecom sectors. The launch of the Flex Connect demand response program in high-value U.S. electricity markets like California and New York marks a move from passive presence to active participation in regional energy grids. In Europe, partnerships with Enel and Hive, along with the acquisition of FläktGroup, significantly bolster its capabilities. Most notably, the active deployment of SmartThings Pro in commercial settings in the UAE signals a new geographic risk and opportunity, testing its B2B platform in emerging smart city hubs beyond its traditional consumer strongholds.
Technology Maturity: Samsung’s Evolution from Device Control to AI-Driven Ecosystem Orchestration
From 2021 to 2024, Samsung focused on commercializing its core technology and validating its market position. The SmartThings platform itself was already at scale, but the key technological development was the refinement and launch of services like SmartThings Energy and its AI Energy Mode. This technology, which offered up to 30% savings on appliances, moved from a novel feature to a commercially scaled solution. The most significant validation point was the January 2023 ENERGY STAR SHEMS certification, which officially moved the platform from the “smart home gadget” category to a “certified energy management system.” During this time, concepts like the “Net Zero Home,” which integrated third-party solar and storage, were in an early commercial or pilot phase, proving the viability of a holistic system.
The period from 2025 to the present marks a significant leap in technological maturity, shifting from device-level control to full ecosystem orchestration. The core AI technology is now scaling dramatically, with AI Energy Mode now capable of reducing energy use by up to 70% in certain appliances. More importantly, the technology is being applied to new, commercially deployed services. The Flex Connect program is a commercial virtual power plant (VPP) solution, not a pilot. SmartThings Pro is a commercial B2B platform being actively deployed in hotels and offices. The integration with Kia’s vehicles represents a novel, commercially-ready application that extends energy management to mobility. Furthermore, the adoption of the Matter 1.4 standard is moving from a concept to a scaling reality, enabling the integration of a wider range of high-load devices like heat pumps and water heaters, which is critical for transforming SmartThings into a truly comprehensive home energy orchestrator.
Table: SWOT Analysis of Samsung’s Smart Home Energy Management Strategy
| SWOT Category | 2021 – 2023 | 2024 – 2025 | What Changed / Resolved / Validated |
|---|---|---|---|
| Strengths | Large existing user base (70M+ active users by 2021) and a broad portfolio of first-party smart appliances. The AI Energy Mode was established as a core, differentiating software feature. | Massive scale (425M+ users) and a vertically integrated ecosystem combining hardware (appliances, HVAC) with AI software (SmartThings). First-mover in B2B (SmartThings Pro) and grid services (Flex Connect). | The strategy evolved from leveraging a large user base to orchestrating a deeply integrated, multi-sector ecosystem. The value proposition was validated by the commercial launch of B2B and grid service offerings, moving beyond consumer device control. |
| Weaknesses | Dependence on third-party partners like Qcells and ABB for critical “Net Zero Home” components (solar, automation). Potential for a fragmented user experience across different partner devices. | Growing complexity in managing a vast partner network (380+ partners) creates execution risk. Increased data collection for AI optimization raises significant consumer data privacy and security challenges. | The weakness shifted from a lack of native capability in certain areas to the immense challenge of managing a complex, sprawling ecosystem. While the FläktGroup acquisition addresses the HVAC gap, the core challenge is now platform governance and trust. |
| Opportunities | Capitalize on the growing smart home market and rising consumer demand for energy efficiency. The ENERGY STAR SHEMS certification (Jan 2023) created a significant marketing and credibility advantage. | Dominate the projected $12.3B HEMS market by 2033. Expand into new revenue streams like virtual power plants (Flex Connect), mobility fleet management (Kia partnership), and commercial real estate (SmartThings Pro). | The opportunity was validated and expanded from selling energy-saving products to building a platform that captures value across the entire energy ecosystem, including grid services, commercial buildings, and mobility. |
| Threats | Intensifying competition from other major tech platforms like Google Home and Amazon Alexa, which were also committing to the Matter standard and building out their own ecosystems. | Data privacy and security breaches could severely damage consumer trust, undermining the entire platform. Failure to maintain a seamless user experience across a diverse partner network could lead to user frustration and abandonment. | The threat evolved from direct platform competition to the existential risks of managing a data-intensive global platform. The primary threat is no longer just a better competitor app, but a loss of trust or a failure in execution at scale. |
Forward-Looking Insights and Summary
The data from 2025 signals a clear acceleration of Samsung’s strategy to embed SmartThings as the indispensable operating system for energy management. The recent flurry of high-stakes partnerships and acquisitions is not random; it’s a calculated effort to conquer key energy-consuming verticals. The acquisition of FläktGroup and the joint venture with Lennox indicate a major offensive to own the HVAC space, a cornerstone of both residential and commercial energy use. The partnership with Kia is a template that will likely be replicated, extending the SmartThings Pro ecosystem into logistics and other commercial vehicle fleets.
Looking ahead, market actors should closely monitor the geographic expansion of the Flex Connect demand response program. New utility partnerships in Europe and other U.S. states will be the primary indicator of its success in building a globally significant virtual power plant. The upcoming IFA 2025 event will be a critical checkpoint, where Samsung is expected to unveil its next-generation ‘AI Home’ roadmap, likely featuring deeper automation and more sophisticated energy-saving routines. The initiatives gaining the most traction are clearly the B2B and grid service layers built atop the consumer platform. Samsung is no longer just competing with other smart device makers; it is positioning itself as a strategic partner to utilities, automakers, and real estate developers, a far more defensible and lucrative position in the future of energy.
Frequently Asked Questions
What is the biggest shift in Samsung’s SmartThings strategy in 2025?
In 2025, Samsung shifted its strategy from focusing on a consumer-centric, self-contained ecosystem of smart appliances to building a universal, grid-integrated platform. The company is aggressively expanding into B2B applications with SmartThings Pro, integrating with commercial infrastructure (Siemens) and vehicles (Kia), and launching grid services like virtual power plants. The goal is to manage energy across residential, commercial, and mobility sectors, not just within the home.
What is SmartThings Pro and how is it different from the regular SmartThings app?
SmartThings Pro is the B2B (business-to-business) version of the platform, designed for commercial and enterprise use. While the standard SmartThings app is for individual homeowners, SmartThings Pro is being deployed in commercial spaces, multi-family residential buildings, and even integrated into Kia’s purpose-built vehicles. It’s built for large-scale facility management, fleet operations, and integrating with professional systems like ABB’s InSite energy management.
What is a virtual power plant (VPP), and how is Samsung involved?
A virtual power plant is a network of distributed energy resources (like smart appliances, batteries, and solar panels) that can be collectively controlled to provide services to the electrical grid. Samsung is involved through its “Flex Connect” program, launched with partner Leap. This program allows SmartThings users in certain areas (like CA and NY) to enroll their smart appliances to automatically reduce energy consumption during peak demand events, helping to stabilize the grid and earning users rewards in the process.
Why are partnerships with companies like Tesla, Lennox, and FläktGroup so important to Samsung’s strategy?
These partnerships and acquisitions are essential for Samsung to control key energy-consuming verticals and expand its ecosystem. The Tesla integration unifies energy generation (solar), storage (Powerwall), and consumption. The Lennox joint venture and FläktGroup acquisition give Samsung a commanding position in the HVAC market, a major source of energy use in both homes and commercial buildings. These moves allow SmartThings to become the central orchestrator for a complete energy system, rather than just a controller for Samsung’s own devices.
According to the analysis, what are the biggest threats to Samsung’s strategy?
The primary threats have shifted from direct competition to the risks associated with managing a massive, data-intensive global platform. The two biggest risks are: 1) A major data privacy or security breach, which could destroy the consumer trust that the entire ecosystem is built on. 2) A failure to maintain a seamless user experience across its vast network of over 380 partners, which could lead to user frustration and abandonment of the platform due to its complexity.
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