International Data Corporation (IDC) published results from its newest Tracker research program covering the fast-growing market of Smart Home Devices. In this initial publication, the Worldwide Quarterly Smart Home Device Tracker focuses on market sizing and forecasting of IP-connected devices used in the home, inclusive of smart speakers, digital media adapters, lighting, thermostats, and more. The historical data is accompanied by a five-year forecast that offers insight into upcoming trends and the ever-evolving market.
In 2017, 433.1 million smart home devices were shipped worldwide, growing 27.6% from the previous year. Looking ahead, IDC anticipates a compound annual growth rate (CAGR) of 18.5% as the market balloons to 939.7 million devices shipped in 2022.
Within the smart home market, the smart speaker category, which includes devices like the Amazon Echo and Google Home, will remain the fastest growing category throughout the forecast. Meanwhile, shipments for most other categories, with the exception of video entertainment products, will experience a double-digit CAGR during the same period.
“The smart home market is still in its infancy but we’re already seeing some significant changes in consumers’ and vendors’ approach,” said Jitesh Ubrani senior research analyst for IDC Mobile Device Trackers.
“There’s less of a focus on having a central hub and apps as the centre of the interface as hardware makers race to create interoperability with smart assistants like Alexa, Siri, or Google Assistant. On the other hand, consumers, while still somewhat hesitant to anthropomorphise smart assistants, are beginning to expect a more natural user interface to the myriad of smart home devices.”
“While it’s still early days for the smart home market – and the wider consumer IoT ecosystem in general – we expect to see considerable growth over the next few years, especially as consumers become more aware of and increasingly interact with smart assistant platforms like Amazon’s Alexa and Google Assistant,” said Adam Wright senior research analyst for IDC’s Consumer IoT Program.
“Whether in the form of a smart speaker or embedded in a thermostat, fridge, TV, or any other device, smart assistants are quickly becoming the cornerstone of consumer IoT by enhancing the accessibility, use, and functionality of connected devices, which will noticeably boost adoption rates in the near future.”