Around 801.5 million smart home devices (a growth of 4.5 percent over 2019) were shipped, globally, last year. But is this just to begin with? The International Data Corporation (IDC), a global market intelligence agency, projects that shipments may surpass 1.4 billion in 2025, at a five-year compounded annual growth rate (CAGR) of 12.2 percent.
“Sales of smart home devices have remained fairly resilient during the global Covid-19 pandemic,” states Adam Wright, senior research analyst, Internet of Things (Consumer), IDC. Despite unemployment, inapt economic recovery and lockdown measure, the year 2020, witnessed positive growth across device categories. Streaming sticks, smart speakers, security devices, smart lights, besides other smart devices, did well, adds Wright.
There’s an interesting observation made by IDC’s Worldwide Quarterly Smart Home Device Tracker, further. While the USA will continue to dominate shipments, growing at 3.8 percent with over 451.3 million units shipment in 2025, China is expected to lead the race by the end of 2024 with its five-year CAGR of 21.9 percent.
A second interesting observation made is about the Indian market: “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 battlegrounds 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.”
The factors that can curb growth include concerns over security and privacy, price sensitivity towards costs of devices and services and economic uncertainty resulting from volatile labour and financial markets, globally.
|Smart Home Devices, Shipments, Market Share, and Growth by Category, 2020 and 2025 (shipments in millions)|
|Category||2020 Shipments||2020 Market Share||2025 Shipments*||2025 Market Share*||2020–2025 CAGR|
|Source: IDC Worldwide Quarterly Smart Home Device Tracker, March 25, 2021|
* Note: Data represents forecast values.