Background: The number of older people with unmet health care and support needs is increasing substantially due to the challenges facing healthcare systems worldwide. There are potentially great benefits to using Internet of Things (IoT) coupled with Artificial Intelligence to support independent living and the measurement of health risks, thus improving quality of life for the older adult population. Taking a co-design approach has the potential to ensure that these technological solutions are developed to address specific user needs and requirements. Objective: Using an adapted co-design framework, the aim of this study was to investigate stakeholder’s perceptions of independent living and technology solutions, identify stakeholder’s suggestions on how technology could assist older adults to live independently and explore the acceptability and usefulness of a prototype IoT solution to support independent living, “The NEX system”. Methods: Four phases were employed to design the NEX system as part of an Academic Industry Collaboration (AIC). Initially, a pre-design exploratory phase involved the recruitment of n=17 stakeholders using fictitious personas and scenarios to explore initial perceptions on independent living and technology solutions. Thematic analysis was applied to transcripts of these focus group discussions to highlight key themes. Subsequently, a co-design and testing phase involved an online survey (completed by n=380 stakeholders) and a prototype testing phase (completed by n=7 older adult participants) to obtain user needs and requirements relating to technology to support independent living and initial acceptability of a prototype system was completed. Lastly, as part of the post-design phase, workshops between the academic and industry partners were conducted whereby analysis of data collected from the pre- and co-design phases were discussed to inform recommendations for future system development. Results: The pre-design phase revealed three broad themes: loneliness and technology, ageing and technology and adopting and using technology. The co-design phase highlighted key areas where technology could assist older adults to live independently: home security, falls and loneliness (older adult stakeholders), remote monitoring by family members (family caregiver stakeholders), communication with clients (healthcare professional stakeholders) and falls (homecare worker stakeholders). The prototype testing revealed that the acceptability aspects of the prototype varied across technology types. Ambient sensors and voice activated assistants were described as the most acceptable technology by participants. Lastly, the post-design analysis process highlighted that ambient sensors have potential for automatic detection of activities of daily living and also resulted in key recommendations for future developments and deployments in this area. Conclusions: This research demonstrates the importance of considering multiple stakeholder opinions in development of solutions to support independent living. It also highlights the benefit of including a prototype testing phase in the process to provide valuable insight to the lived experiences of interacting with technology solutions in a home environment.