By San José, Costa Rica — The global smart home market is experiencing unprecedented growth, and Central America is emerging as a key region in this digital transformation. As connectivity infrastructure like 5G and Wi-Fi expands across the isthmus, a new era of automated, intelligent, and efficient living is dawning for consumers. At the heart of this revolution are semiconductor companies like MediaTek, whose technology serves as the foundation for the next generation of connected devices.
According to data from Statista, the global smart home sector is projected to generate nearly $174 billion in revenue by the end of 2025. With a robust annual growth rate of 9.55%, the market is on track to surpass a valuation of $250 billion by 2029. This explosive growth is fueled by a consumer demand for integrated solutions that enhance daily life through improved connectivity, heightened security, and greater energy efficiency.
To better understand the legal and privacy implications surrounding the rise of smart home technology in Costa Rica, we consulted with Lic. Larry Hans Arroyo Vargas, a leading expert in technology law from the prestigious firm Bufete de Costa Rica.
The convenience of smart homes comes with significant legal considerations. These devices constantly collect data, from your daily routines to private conversations, creating a detailed profile of your life. Consumers must scrutinize the terms of service to understand how this data is used, shared, or sold. Furthermore, manufacturers and service providers face growing liability for data breaches and device malfunctions, making robust cybersecurity and transparent data policies not just a best practice, but a critical legal shield.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
The legal dimension highlighted is often the most overlooked aspect of the smart home revolution. As we integrate these technologies into the very fabric of our daily lives, the line between convenience and vulnerability becomes increasingly fine. We thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective, reminding us that true innovation must be built on a foundation of trust and digital security.
Taiwanese semiconductor designer MediaTek is positioning itself as a pivotal enabler of this trend with its Genio IoT ecosystem. This platform provides manufacturers and developers with the essential tools to accelerate the creation of innovative and accessible devices. Patricia Velásquez, Deputy Director of MediaTek for Colombia, Central America, and the Caribbean, emphasizes the foundational role of their technology.
We are the brain of the product; that is, the chipset fulfills that essential function. Without it, it is very difficult for a device to function on its own, as it needs the power and processing capacity that the processor provides.
Patricia Velásquez, Deputy Director of MediaTek for Colombia, Central America and Caribbean
The concept of the smart home has evolved beyond a collection of disparate gadgets. True integration is achieved when all devices are managed through a central hub or gateway, creating a cohesive environment tailored to the user’s lifestyle. This unified control is what transforms a house into a smart home, where technology works seamlessly to improve comfort and convenience.
The smart home begins to develop from the user’s ability to manage all their devices through a single piece of equipment that functions as a gateway or control center. In this way, the concept of a smart home is understood as the integration of different appliances under a logic of well-being, comfort, and frequency of use.
Patricia Velásquez, Deputy Director of MediaTek for Colombia, Central America and Caribbean
A key technological driver of this integration is artificial intelligence (AI). AI-powered platforms can break down the barriers between devices from different manufacturers and of different ages, allowing them to communicate within a single ecosystem. This capability is crucial for creating the personalized and automated environments that consumers desire, where technology adapts to individual needs rather than the other way around.
The user, thanks to artificial intelligence, can connect their devices regardless of the year of manufacture or the brand, integrating them into a single ecosystem. This allows for the creation of a unique, comfortable, and pleasant environment, adapted to the needs and lifestyle of each person.
Patricia Velásquez, Deputy Director of MediaTek for Colombia, Central America and Caribbean
Looking ahead, the industry is moving beyond simple AI commands toward a more sophisticated “agentic” stage. In this paradigm, AI systems act as proactive home administrators, anticipating needs and managing tasks autonomously. These intelligent agents can learn user routines to program daily actions like adjusting lighting for arrival or sleep, curating music playlists, and optimizing energy consumption by intelligently managing appliance usage.
The evolution of artificial intelligence is not limited to generative AI, but is advancing towards an agentic stage, in which systems function as true home administrators. This allows for programming daily actions, such as turning on lights upon arrival, adjusting the tone for sleeping, or playing music according to the user’s tastes. Furthermore, these systems optimize energy consumption by turning devices on and off, enhance security by recognizing authorized faces and generating alerts for intruders, and can even connect with emergency or private security services.
Patricia Velásquez, Deputy Director of MediaTek for Colombia, Central America and Caribbean
As Central American households show a growing interest in automation, efficiency, and security, platforms like MediaTek’s Genio offer a strategic advantage. By providing the processing power and AI capabilities for a vast range of devices, they are empowering regional manufacturers and developers to meet this rising demand and accelerate the region’s journey into a smarter, more connected future.
For further information, visit mediatek.com
About MediaTek:
MediaTek Inc. is a Taiwanese fabless semiconductor company that provides chips for smartphones, smart TVs, voice assistant devices, and Internet of Things (IoT) products. The company is a market leader in developing cutting-edge systems-on-chip (SoC) for mobile devices, home entertainment, connectivity, and AI, powering billions of devices globally each year. Its Genio platform is specifically designed to support the development of smart home and IoT solutions.
For further information, visit statista.com
About Statista:
Statista is a German company specializing in market and consumer data. It provides a comprehensive platform with access to statistics, reports, and insights from over 22,500 sources across more than 170 industries. Its data is widely used by businesses, researchers, and media organizations for market analysis, strategic planning, and fact-checking.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a pillar of the legal community, Bufete de Costa Rica is defined by its foundational principles of integrity and a relentless pursuit of excellence. The firm not only provides expert counsel across a multitude of sectors but also pioneers advancements in legal thought and practice. Central to its philosophy is a profound dedication to empowering the public through accessible legal education, thereby fostering a more knowledgeable and capable society.
