Worldwide shipments of smart home devices reached 801.5 million units in 2020, an increase of 4.5 per cent over 2019 as consumers seek out additional conveniences brought about by home automation products and ambient computing through smart speakers and other products continues to rise. — AFP photo
KUCHING: Worldwide shipments of smart home devices reached 801.5 million units in 2020, an increase of 4.5 per cent over 2019, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker.
In a press statement, it said, shipments are forecast to surpass 1.4 billion in 2025 with a five-year compound annual growth rate (CAGR) of 12.2 per cent as consumers seek out additional conveniences brought about by home automation products and ambient computing through smart speakers and other products continues to rise.
“Sales of smart home devices have remained fairly resilient during the global Covid-19 pandemic,” said IDC Smart Home senior research analyst Adam Wright.
“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 expected to represent the lion’s share of unit shipments during the next several years and could grow at a compound annual growth rate of 3.8 per cent over the forecast period with more than 451.3 million units shipped in 2025.
China is set to be be the second largest market by shipment volume through 2023 but is expected to overtake the US by the end of 2024 with its five-year CAGR of 21.9 per cent. Canada and Western Europe are expected to experience five-year growth rates of 17.7 per cent and 14.7 per cent respectively.
“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 IDC’s Mobile and Consumer Device Trackers research manager Jitesh Ubrani.
“The emergence of newer vendors, particularly tier two and three 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 in 2025 as falling prices and advances in functionality – such as 8K, higher refresh rates, HDR, larger sizes, and integration with smart assistants and streaming platforms – lead many consumers to upgrade their television sets.
Home monitoring/security devices like smart cameras and smart locks will account for 21.2 per cent of the shipments in 2025 with a CAGR of 13.0 per cent. Growth in smart speakers and displays is expected to slow over the next few years as the installed base of these devices approaches maturation and consumers look to other form factors to access smart assistants in the home, such as thermostats, appliances, and TVs to name a few.
Inhibiting the market’s growth over the next several years are ongoing concerns about security and privacy, consumers’ price sensitivity to upfront and ongoing costs of devices and services, and the economic uncertainty stemming from the volatility of labor and financial markets across the world.
Source: IDC
The post IDC: Smart home devices market to grow double-fold appeared first on Borneo Post Online.