Report: Smart home devices market grew 11.7% in 2021
April 27, 2022
The global market for smart home devices grew 11.7 per cent in 2021 compared to 2020 with more than 895 million devices shipped, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker.
Notwithstanding the market volatility due to the pandemic and its impact on supply chains as well as demand-side shocks, IDC anticipates that the worldwide smart home device market will see steady growth over the next five years as smart home users expand their smart home ecosystems and seek more sophisticated connected experiences. The market’s growth will also be driven by high broadband penetration and increasing numbers of wireless home networks, although consumer concerns around privacy, security, costs, and interoperability will constrain the market’s development for the foreseeable future.
“The notion of the ‘smart home’ is well and truly mainstream in many parts of the world now,” said Adam Wright, senior research analyst, Internet of Things: Consumer. “Smart home devices have proved their merit during the global pandemic as adding meaningful value to people’s lives at home, such as easing social isolation, enhancing home security, and delivering convenience and entertainment, among other benefits. As we look ahead, and buoyed by strong demand, the market is poised for solid growth despite ongoing disruptions from supply chains, logistics, and uneven economies across the globe.”
North America held the largest share of unit shipments in 2021 and grew 11.4 per cent year-over-year. The Asia/Pacific region was the second largest segment by shipment volume with 31 per cent of shipments and had a year-over-year growth rate of 10.8 per cent. Western Europe and Latin America posted solid growth of 14.8 per cent and 11.2 per cent respectively.
“While there’s plenty of growth to be had in the smart home market, there are still challenges ahead as lack of interoperability and the longevity of smaller OEMs are issues that will negatively impact the market,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers. “While the upcoming Matter standard will help negate some of these concerns, OEMs will still need to offer a robust services component in addition to hardware in order to stay relevant.”
Networked video entertainment devices – such as smart TVs, streaming sticks, and internet-connected set-top boxes – held the largest volume of shipments with 34.7 per cent share and grew 4.8 per cent year-over-year in 2021. Smart lighting devices are forecast to be the fastest growing category of devices with a five-year compound annual growth rate (CAGR) of 23.6 per cent. Driving the market’s growth at a global level is rising broadband penetration, rising disposable incomes, and rising consumer awareness of smart home devices and the cost savings, convenience, and energy efficiencies that they can deliver.