The new Wearable Tech and Smart Home PR division will be headed by Ellen Powell-Chandler, who formerly worked at Burson-Marsteller on the Sony Mobile account.
Dynamo, which was named Small Consultancy of the Year at the 2014 PRWeek Awards, said a number of new companies had already been signed up to the division.
Existing accounts from Digitsole, the insole that combines the functions of a smartwatch with heating capabilities, and LightFreq, the lightbulb with a built-in speaker, sit under the new division.
Dynamo said the wearable technology industry was growing quickly, with figures indicating that one in ten consumers want a wearable tech device and volumes shipped reaching close to half a billion by 2018. The group also pointed to estimates that the value of the ‘smart home’ sector will grow to $7.8bn (£5bn) in the US alone by 2019.
Powell-Chandler, who oversees a four-strong team at the new division, said: "Our homes and lives are becoming more connected. Different industries, whether it is technology, design or fashion, are battling to help us live and work smarter. Consumers are increasingly wearing fitness trackers and expecting their smartphone to be able to control their home.
"As the industry heats up, companies need to have a trusted team that know the space inside out and understand how these products and services are transforming lives."
Bluesmart raised more than $850,000 (£540,974) on crowdfunding site Indiegogo in just ten days. The product lets owners lock, unlock, weigh and track their suitcase via a smartphone.
Alejo Verlini, co-founder of Bluesmart in New York, said: "The Dynamo team have a great reputation for launching smart technology and driving targeted sales around the world. It’s clear that everything from our luggage to our pets will be connected by our phones or our watches, so we’re excited to work with an awesome team that understands the future and what people are experiencing in this new era."