Global shipments of smart home devices declined 2.6 percent to 871.8 million units in 2022, according to IDC.
Smart TVs, which represented the largest category, faced 4.3 percent decline in 2022 due to tough year-over-year comparisons as the market for TVs and other products was extremely strong in 2021 due to COVID-related purchasing.
IDC forecasts 2.2 percent growth in smart home device shipments in 2023 to 890.9 million from 871.8 million in 2022 as the global economy recovers. This growth is expected to continue through 2027 with device volumes reaching 1.23 billion in 2027, the report said.
Smart home devices shipment will reach 284.4 million Video Entertainment devices, 197.8 million Home Monitoring/Security devices, 111.7 million Lighting devices, 111.7 million Smart Speakers, 25.9 million Thermostat devices and 159.5 million others in 2023.
“Smart TVs will likely face another year of decline in 2023 due to macroeconomic pressures and long replacement cycles,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers.
“With the recent entrance of value-oriented brands such as Amazon and Roku, IDC expects further declines in selling prices for TVs while also bringing premium features down to more affordable price points.”
Apart from TVs, other smart home categories such as security cameras, connected doorbells and door locks along with smart displays are expected to grow thanks to a growing installed base, a recovering economy, and the rise of emerging markets.