Content |
2022
Market Drop to 871.7 Million - IDC Data
In 2022, shipments of smart home devices decreased by 2.6% compared to the previous year - to 871.8 million units. The corresponding indicators are given in the IDC study, the results of which were released on March 31, 2023.
The supply of products such as set-top boxes, monitoring and security systems, smart lighting devices, smart speakers, thermostats, etc. is taken into account. It is said that in 2022, this industry for the first time in history demonstrated negative dynamics on an annualized basis. This is due to macroeconomic difficulties, high inflation, disruption of supply channels and reduced purchasing power. In addition, there is a lull in the market after rapid growth in 2020-2021, when consumers around the world actively purchased TVs and devices for digital entertainment, while in self-isolation amid the COVID-19 pandemic. Shipments of smart TVs, which are the largest category of smart home equipment, declined 4.3% in 2022.
 | The global market for smart home products is experiencing a period of instability. Persistent disruption due to supply chain issues, inflation and economic challenges impacted the industry in 2022 and is expected to have a negative impact for the foreseeable future. But despite these limitations, consumers are increasingly purchasing smart devices to improve quality of life at home and beyond, said Adam Wright, IDC research manager. |  |
video surveillances With the exception of TVs, most other categories of smart home solutions, such as cameras, doorbells and smart locks, and smart displays, are expected to grow due to economic recovery and increasing demand in emerging markets.[1]
Smart Home Devices Market Dips 2.6%
On December 22, 2022, IDC published the results of a study of the global market for smart home devices - monitoring and security systems, smart lighting devices, thermostats, smart speakers, video solutions, etc.
According to estimates, in 2022 the volume of the industry in unit terms will decrease by 2.6% - to 874.0 million units. Moreover, the main blow will fall on segments of smart speakers and products for video entertainment, such as set-top boxes. This is due to constant disruptions in supply chains due to a shortage of electronic components, as well as restrictions in a pandemic. In addition, in the current macroeconomic situation, consumers began to save money, which negatively affected purchasing power.
| | Looking ahead, we predict that volatility will continue to hold back market growth in 2023 and beyond, "says Adam Wright, senior research manager at IDC Smart Home and Office Devices. | |
Despite the reduction in supplies, the segment of video devices remains the largest: deliveries here in 2022 are expected at 296.1 million units, and the share in the total sales of smart home products is approximately 33.9%. In second place will be monitoring and security systems with 188.6 million units sold and 21.6% of the market. This is followed by smart dynamics, the shipments of which will reach 116.4 million units, the share - 13.3%. Intelligent lighting devices will account for 94.7 million units (10.8%). Another 24.8 million will be thermostats - 2.8% of the world market. Sales of all other smart home products are estimated at 153.5 million, their total share is 17.6%.
Although it is predicted that the industry will return to positive dynamics in 2023, the increase will be relatively small - at the level of 4.6%. At the same time, most of the growth will occur in emerging markets, as well as. China Analysts say consumers in developed markets such as are USA losing interest in smart speakers, with demand for these gadgets projected to shrink in the long term in such regions. At the same time, smart speakers will continue to be in demand in emerging markets and in some European countries. On the other hand, good demand is expected for home monitoring and security solutions such as cameras, doorbells and door locks, as well as smart lighting and video entertainment products.
Between now and 2026, IDC analysts forecast a CAGR (compound percentage CAGR) of 8.0%. If these expectations are met, in 2026, the supply of products for the smart home will reach almost 1.2 billion units. Of these, approximately 325.9 million, or 27.4%, will be accounted for by video entertainment devices. Another 266.1 million units will be monitoring and security systems - the market share of this category is predicted at 22.4%. The supply of intelligent lighting devices, according to IDC, in 2026 will reach 213.5 million units, their share is 18.0%. Shipments of smart speakers will increase to 132.9 million units, their market share - up to 11.2%. Thermostat sales are expected at 31.3 million units, which will correspond to 2.6%. Deliveries of all other smart home devices in 2026 are estimated at 219.3 million units, which will provide 18.4% in total sales. At the same time, the largest CAGR value is predicted in the smart lighting segment - 22.6%. In the sector of monitoring and security systems, this figure will be 9.0%, in the field of thermostats - 6.0%.[2]
2021: Sales of home security systems in the world reached $55.8 billion
The global market for home security systems is estimated at $55.8 billion at the end of 2021. Such data were provided in mid-February 2022 by analysts at ResearchAndMarkets.
According to them, the market is developing largely due to the growing awareness of home security systems. Emerging Internet of Things (IoT) and wireless technologies for home security systems are also driving the market growth. In addition, the increasing use of IP cameras for video surveillance purposes is contributing to the development of the market. In addition, growth is constrained by the high cost of home security systems associated with installation, maintenance and operation.
The deployment of deep learning and artificial intelligence (AI), emerging smart cities initiatives around the world are creating opportunities for the market to grow, ResearchAndMarkets said. On the other hand, problems related to information privacy and systemic difficulties can negatively affect the growth of the market.
Among the most significant events in the home security market in 2021, analysts highlighted the following: Hangzhou Hikvision Digital Technology's collaboration with Gurtam to create a comprehensive telematic solution by integrating its mobile products with the Gurtam GPS tracking platform, as well as Allegion's purchase of certain Astrum Benelux assets.
By product type, the market is divided into fire protection systems, video surveillance systems, access control systems, security alarm systems, etc. Increasingly, these systems are being combined into a single smart home infrastructure for convenient and effective housing safety management. The largest market for such equipment in 2021 was North America. She is expected to maintain leadership in the years to come.[3]
2020: Global Smart Home Devices Market Growth by 4.5%, to 801.5 Million - IDC
The global market for smart home devices in 2020 amounted to 801.5 million units, an increase of 4.5%. Such data are provided in the research company IDC.
| | Despite the COVID-19 coronavirus pandemic, demand for smart home devices has remained quite stable throughout 2020, says IDC analyst Adam Wright, quoted by the press service. - Yes, the market faced some difficulties due to the increased unemployment rate, uneven economic recovery and isolation measures in different parts of the world. Nevertheless, an increase was recorded in all categories of smart home devices compared to 2019. | |
The specialist linked the positive dynamics with the shift in consumer preferences, which occurred against the background of restrictions due to the pandemic. Unable to spend on travel, trips to restaurants and movies, people used the available funds to buy devices to increase comfort in their homes and home entertainment.
Solutions designed for video entertainment (televisions and set-top boxes) in 2020 accounted for the largest volume of supplies of equipment for a smart home - 296.3 million units, or 37% of the total. Supplies of equipment for monitoring and safety at home (smart cameras, locks, gate control modules, security and fire alarms, leak protection systems, etc.) reached 164.2 million units with a share of 20.5%. The third largest category was smart speakers, which by the end of 2020 were sold in the amount of 130.7 million units (market share - 16.3%).
According to the researchers, the demand for TVs and extenders will grow due to two main factors, including:
- lower equipment prices;
- expansion of functionality (support for 8K, high refresh rate and HDR technology, integration with voice assistants and streaming services).
The main barriers to the development of the entire market are as follows:
- quite high cost of smart home solutions;
- lack of consumer awareness of smart home solutions and devices, their characteristics, benefits of use, terms of purchase;
- concerns about privacy, data protection;
- social barriers associated with changing the usual way of life, concerns about the use of complex smart devices.
In addition, in 2020, the "critical mass" of smart home users required for accelerated market growth has not yet been achieved.
Analysts at ABI Research say that despite a decade of double-digit annual growth, the smart home market will remain at a standstill until it moves to exploit its richest resource, data. According to experts, in 2020 the industry was in the earliest stages of using smart home data, which will help offer goods and services that are more valuable to consumers.
| | There are only expensive and limited ways to access even some of this data. But the emerging understanding that losing billions of dollars in potential benefits needs to be addressed, says Jonathan Collins, director of research at ABI Research. | |
IDC believes that the market for smart home equipment will remain growing. Until 2025, deliveries of smart home devices will grow on average by 12.2% per year and by the end of the period should exceed 1.4 billion units. The rise is facilitated by the desire of consumers for additional comfort and automation, which is provided by smart home appliances.[4]
2019: Strategy Analytics forecast
User spending on equipment, services and smart home installation in 2019 will reach $103 billion. With an average annual market growth rate (CAGR) until 2023 of 11% by the end of this period, the market volume will reach $157 billion.
Device spending in 2019 will amount to 54% of the market ($55 billion), and by 2023 it will reach $81 billion (CAGR + 10%). This was announced in September by analysts at Strategy Analytics.
Experts named the largest players in the market: Interactive security, ADT, Comcast and Vivint, Centrica Connected Homes, Deutsche Telekom, Verisure, Korea Telecom, LG U +, Xiaomi, China Telecom, Panasonic and ITSCOM.
At the end of 2018, more than 200 million households used smart home systems. By 2023, the number of such households will grow to 300 million. By this time, one smart home will account for 21 smart devices, or 6.4 billion worldwide.
2018: European market growth 23.1% to 88.8 million - IDC
The volume of the European market for smart home devices in 2018 amounted to a record 88.8 million units, an increase of 23.1% compared to 2017. Such data analysts IDC released on April 11, 2019.
They looked at smart TVs, multimedia set-top boxes, home surveillance and security systems, smart speakers, smart lighting systems and thermostats.
Sales of smart home equipment in Western Europe increased by 14.3%, in Central and Eastern Europe (CEE; including Russia) - by 22.7%. Shipments of smart speakers in CEE jumped 127.8%.
| | Demand for smart speakers in CEE is growing, but their penetration level remains lower compared to Western Europe, says IDC analyst Jan Prenosil. - One of the main reasons for this is the lack of support for local languages, which is crucial for the accelerated implementation of equipment in the region. By the end of 2019, Google plans to introduce support for more than 30 languages, and translation into other languages will increase the demand for smart speakers even more. | |
According to experts, by 2023 the volume of shipments to the region of various smart home devices on the European market will exceed 187 million units. If the forecast is correct, the average annual growth rate (CAGR) in the market in question between 2018 and 2023 will be 16.1%.
The largest segment of the smart home equipment market in Europe is video products, whose share in 2018 exceeded 61.2%. In second place are smart speakers (18.1%), in third place are home security systems (10.3%), in fourth place are lighting solutions (4.8%). Thermostats in 2018 accounted for 2.6% of the supply of equipment for a smart home, according to IDC.[5]
2017
Market growth of 16% to $84 billion - Strategy Analytics
At the end of May 2018, Strategy Analytics published some excerpts from the 2018 Global Smart Home Market Forecast study on the smart home market. Global spending on related equipment, systems and services in 2017 reached $84 billion, an increase of 16% compared to 2016, when sales were measured at $72 billion.
By the end of 2017, the number of households using smart home solutions worldwide was 164 million, compared to 136 million a year earlier.
| | The market continues to evolve, says Strategy Analytics analyst Bill Ablondi. - Consumers are becoming more aware of such technologies, they are becoming more intuitive, prices are falling. However, there remains a high level of fragmentation associated with the fact that a huge number of companies compete for smart homes users. Who can ultimately achieve growth in this market remains to be seen. | |
The study reports that new products from big tech companies like Amazon, Google, ADT and Samsung are contributing to the spread of smart home in North America. In the European market, demand is fueled by Centrica Connected Homes (Hive system), Deutsche Telekom (Magenta Home), eQ-3 and Enco (Toon). In Asia Pacific, Xiaomi, LG U +, iTSCOM and Panasonic are driving the market.
Analysts call North America, which accounts for 41% of expenses, the largest market for smart home solutions.
According to experts, from 2018 to 2023, the global market for smart home devices, systems and services will grow by about 10% annually and reach $155 billion by the end of this period of time, and the number of households using such technologies will increase to 293 million.[6]
Market size of $162 billion - IDC
In 2017, more than 433 million smart home devices were produced in the world, and in monetary terms the volume of this market exceeded $162 billion. Such data were presented by experts from the analytical company IDC at the end of March 2018.
The most extensive category of the smart home device market, which accounts for about three-quarters of the total volume in money, is video entertainment systems, including smart TVs, digital multimedia set-top boxes and other video devices with Internet connectivity. According to IDC estimates, in 2017, revenue in the Video Entertainment segment amounted to more than $133 billion. The leaders in the TV subcategory last year were Samsung and LG Electronics, and Amazon, Google and Roku became the leading manufacturers of media adapters.
The second most important category is home surveillance and security systems, which include network-connected locks, surveillance cameras, doorbells, humidity sensors, etc. In 2017, the contribution of this segment to the total turnover in the market of smart home devices amounted to $4.27 billion.
In third place in terms of share in money are smart speakers like Amazon Echo and Google Home. Analysts call this segment the fastest growing market category in question. According to the forecast, from 2017 to 2022, global revenue from the sale of "smart" speakers with built-in voice assistants will increase by an average of 32% and by the end of the period will reach $17.4 billion. For comparison, in 2017 this figure was equal to $4.4 billion.
Analysts have included smart lighting systems like Philips, General Electric (GE), IKEA, as well as smart thermostats, which are manufactured by Nest and Ecobee, among the five most purchased smart home devices. In 2017, sales of these types of products brought in $1.12 billion and $1.77 billion, respectively.[7]
Notes
- ↑ Shipments of Smart Home Devices Fell in 2022, But a Return to Growth is Expected in 2023, According to IDC
- ↑ Smart Home Shipments Forecast to Decline Slightly in 2022 with Modest Growth Expected in 2023, According to IDC Tracker
- ↑ $55.8 Bn Home Security Systems Market, 2021-2026 - Increasing Adoption of IP Cameras for Video Surveillance Drives Growth - ResearchAndMarkets.com
- ↑ IDC Forecasts Double-Digit Growth for Smart Home Devices as Consumers Embrace Home Automation and Ambient Computing
- ↑ Smart Speaker Shipments Reached a Record Breaking 7.5 Million Units in Europe in 4Q18, Says IDC
- ↑ Strategy Analytics: Global Smart Home Market to Hit $155 Billion by 2023
- ↑ New IDC Smart Home Device Tracker Forecasts Solid Growth for Connected Devices in Key Smart Home Categories
| The site content is translated by machine translation software powered by PROMT. The machine-translated articles are not always perfect and may contain errors in vocabulary, syntax or grammar. Read original article If you find inaccuracies or errors in the results of machine translation, please write to editor@tadviser.ru. We will make every effort to correct them as soon as possible. |