Devices from the like of Samsung and LG are set to fill smart homes.
The number of Internet of Things (IoT) devices in smart homes is expected to reach 10 million by 2017, according to Juniper Research.
The analyst firm said that number is up from four million in 2013, as awareness of connected appliances is growing among consumers.
However, the report added: "Such devices are not widely considered to represent attractive purchases."
The increase in the number of connected home appliances being deployed is attributed to the availability of wider range of intelligent appliances from consumer electronics manufacturers.
Manufacturers like Samsung and LG are expanding their range of intelligent appliances as part of wider smart home strategies.
According to the report, smart appliances will remain niche due to high retail prices, poor use cases and security concerns, in addition to scarce availability of the technology capable of leveraging IoT devices.
Adoption of smart home services in the cloud is expected to reduce the need for expensive smart home device processors, while allowing the devices to use the power of big data.