Driven by high broadband penetration, the availability of 5G connections, and the increasing number of wireless home networks, the worldwide market for smart home devices grew by 11.77% in 2021 compared to 2020. More than 895 million devices were shipped and the market intelligence firm still anticipates a steady growth over the next five years.
“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.”
Video entertainment devices (smart TVs, streaming sticks, and internet-connected set-top boxes) topped the list in terms of the number shipping more than 310 million posting a 35% market share for 2021. IDC forecasts that the shipments will reach 374.3 million in 2026 with a market share of 26% and a compound annual growth rate (CAGR) of 3.8% for 2021-2026.
Home monitoring and security (CCTV and the like) devices come in second with 184.8 million shipments in 2021 posting a market share of 21%. Lighting comes in third with 85.7 million shipments and a 10% market share for 2021.
The Asia Pacific was the second-largest segment by shipment volume with 31% of shipments and had a year-over-year growth rate of 10.8%. The region comes second only to North America, which held the largest share of unit shipments in 2021 and grew 11.4% year-over-year. Western Europe and Latin America posted solid growth of 14.8% and 11.2% 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.”