Smart Home Devices Will Deliver Double-Digit Growth Through 2022

Smart Home Devices Will Deliver Double-Digit Growth Through 2022

Foto: Depositphotos

The worldwide smart home devices market is expected to grow 31% year over year in 2018 to 643.9 million shipments, according to IDC.

The entire smart home market, comprised of smart speakers, video entertainment products, connected lighting, smart thermostats, and home monitoring/security products, is forecast to be nearly 1.3 billion devices by 2022 with a five-year compound annual growth rate (CAGR) of 20.8%. The fastest growing category with a five-year CAGR of 39.1%, accounting for almost 100 million units in 2018 and 230.5 million by 2022, will be smart speakers such as the Amazon Echo and Google Home.

Privacy and security for smart home devices remains one of the key inhibitors to adoption, as evidenced in IDC's recent Consumer IoT Survey. However, IDC maintains a positive outlook for the market as the convenience of smart home devices frequently outweighs concerns."

Video Entertainment products are comprised mostly of smart TVs and digital media adapters, such as Google's Chromecast, Apple TV, Fire TV, and Roku's devices. Acting as the center of the living room, this category is poised for growth and is forecast to reach 457.5 million units by 2022 with a five-year CAGR of 10.9%. For many brands and consumers, this category is expected to serve as the gateway into the smart home ecosystem and as such IDC anticipates immense competition both in content and in price when it comes to this category.

Home Monitoring/Security devices, ranging from door/window sensors to door locks and IP cameras, are expected account for 19.4% of the smart home market by the end of 2022. While the category faces great potential with a five-year growth of 27.3%, it also remains targeted at a somewhat limited subset of consumers, specifically homeowners, as most products still do not offer a lot of value for consumers living in apartments.

Smart Speakers, despite capturing the spotlight today, will only be the third largest category in 2022 as numerous vendors launch products with support for Amazon's Alexa or Google Assistant. Siri, Cortana, and Bixby are also expected to establish widespread availability, although none of these assistants will challenge the position of Google or Amazon in terms of unit shipments. While there will be a sizeable portion of the market that will not run on any of these platforms, IDC expects the market for these smart speakers to be largely relegated to China where incumbents like Xiaomi and Alibaba have already captured a large share.

Connected Lighting, Thermostats, and Other products will round out the smart home market, providing users with a complete ecosystem of products and services to control and monitor their homes. Combined, these categories are expected to grow with a five-year CAGR of 26.9% with lighting products (e.g. Philips Hue) accounting for almost one third of the shipments. Thermostats, while popular in North America, will face more muted growth in the rest of the world as many countries do not employ the use of central HVAC systems and therefore do not require a dedicated thermostat.

Smart Home Devices by Category, 2018 and 2022 (Shipments in millions)

Category

2018 Shipments

2018 Share

2022 Shipments

2022 Share

Home Monitoring

97.7

15.2%

244.9

19.4%

Lighting

37.7

5.9%

104.6

8.3%

Others

84.5

13.1%

189.3

15.0%

Smart Speaker

99.8

15.5%

230.5

18.2%

Thermostat

13.6

2.1%

37.5

3.0%

Video Entertainment

310.5

48.2%

457.5

36.2%

Total

643.9

100.0%

1,264.5

100.0%

More from category

Retail IoT Platform Revenues Will Exceed $4.3 Billion by 2023

Retail IoT Platform Revenues Will Exceed $4.3 Billion by 2023

20 Nov 2018 comment

A new study from Juniper Research has found that revenues generated by IoT retail platforms will exceed $4.3 billion by 2023, up from an estimated $890 million in 2018.

Mobility Market in Europe Will Reach Nearly $325 Billion in 2022

Mobility Market in Europe Will Reach Nearly $325 Billion in 2022

20 Nov 2018 comment

European spending on mobility solutions is forecast to reach $293 billion in 2018, according to IDC.

Retailers Invest Heavily in Digital to Meet Customer Expectations

Retailers Invest Heavily in Digital to Meet Customer Expectations

19 Nov 2018 comment

Global retail sector technology spending will grow 3.6 percent to reach almost $203.6 billion in 2019, with similar growth rates for the next two years, according to the latest forecast from Gartner.