Global IT research firm IDC has published the latest forecast on Smart Home Devices market.
Smart Home Device includes IP-connected devices used in the home, inclusive of smart speakers, digital media adapters, lighting, thermostats, and more
The number of smart home devices shipped worldwide was 433.1 million in 2017, up 27.6 percent from the previous year.
The global smart home devices market will reach 939.7 million in 2022 with 18.5 percent CAGR.
The smart speaker category including devices like the Amazon Echo and Google Home will remain the fastest growing category. Shipments for most other categories, with the exception of video entertainment products, will experience a double-digit CAGR during the same period.
“There’s less of a focus on having a central hub and apps as the center of the interface as hardware makers race to create interoperability with smart assistants like Alexa, Siri, or Google Assistant,” Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers, said.
Video entertainment devices, inclusive of smart TVs, digital media adapters, and other IP-connected video devices, will achieve 8.3 percent CAGR for unit shipments over the 2017–2022 forecast period. Leaders in the TV category during 2017 were Samsung and LG while category leaders for digital media adapters during the same period were, in order, Amazon, Google, and Roku.
Home Monitoring/Security — connected door locks, cameras, moisture sensors, door bells, and more — will remain the second largest category through 2022 as products become easier to deploy in the home and will not require consumers to have a DIY attitude to integrate these products with their smart assistants and other devices.
Smart Speakers with built-in smart assistants have captured the spotlight recently as major new brands like Apple have entered the market. In addition, Amazon and Google have been quick to respond by offering additional models and price points through their first-party speakers and by partnering with numerous other brands to bring Alexa- or Google Assistant-enabled speakers.
Connected Lighting products will be worth more than $3.5 billion by the end of 2022. Philips, GE, IKEA, and others, are the larger smart home market players. With prices quickly dropping and bundling with smart speakers as an entry level smart home solution, the lighting category has a lot of future potential.
Thermostats — offered by Nest or Ecobee and others — will achieve CAGR of 20.8 percent for unit shipments by 2022.
