Worldwide shipments of smart home products are forecasted to surpass 1.4 billion units by 2025, IDC reports.
Sales of the devices hit a staggering 801.5 million units in 2020 alone and IDC predicts it will grow over the next five years by 12 per cent YoY to reach beyond the one billion mark.
“Sales of smart home devices have remained fairly resilient during the global COVID-19 pandemic,” said Adam Wright, senior research analyst, Smart Home.
“The market faced some challenges in 2020, the result of high unemployment, an uneven economic recovery, and lockdown measures, among other factors. But nonetheless, 2020 saw positive year-over-year growth across all device categories.
Consumers have shifted their spending priorities from other areas like vacations, going out to eat, or visiting cinemas to focus on adding more comfort, conveniences, and entertainment at home. As such, we have seen that smart home devices like streaming sticks, smart speakers, security devices, smart lights, and others have performed well over the past year.”
The US is tipped to account for the lion’s share of the unit shipments over the next several years, with more than 451.3 million units shipped in 2025.
China will be the second biggest market by shipment volume but is forecasted to overtake the US by the end of 2024.
“While developed markets will undoubtedly lead in terms of shipment volumes, emerging markets such as India and Latin America are expected to quickly become the next battle grounds for companies such as Google and Amazon who currently dominate the smart home market,” said Jitesh Ubrani, research manager for IDC’s Mobile and Consumer Device Trackers.
“The emergence of newer vendors, particularly tier 2 and 3 smartphone brands, will also help drive additional competition within the home.”
Video entertainment devices are expected to deliver the largest volume of shipments, accounting for 27.6 per cent of all shipments by 2025.
Falling prices and advances in functionality – such as 8K, higher refresh rates HDR and smart integration will lead many consumers to upgrade television sets.
Security devices such as smart cameras and smart locks will be the second biggest market, while growth in smart speakers and displays is expected to slow over the next few years.
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