Smart Home Device Growth Slows Along with Global Economy, Says IDC

BY Business Wire | ECONOMIC | 10/03/22 08:30 AM EDT

NEEDHAM, Mass.--(BUSINESS WIRE)-- Consumer buying continues to cool across the globe as macroeconomic issues persist. The slowdown in buying is expected to result in flat growth for smart home device shipments in 2022, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Global shipments are expected to remain at 897.4 million with major categories such as smart speakers and TVs facing single digit declines.

"The extreme levels of buying that have taken place since the onset of the pandemic are coming to a close for smart speakers, TVs, and streaming devices as demand for these categories will remain muted until the economy sees some improvement towards 2024," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers. "However, this does present an opportunity for cost saving devices such as smart thermostats and smart lighting as these products can help consumers reduce costs during an otherwise inflationary period."

"North America will lead the rest of the world in both shipments and value for most of the forecast period, due in part to the region being further along its adoption curve compared to other parts of the world," said Adam Wright, senior research manager, Smart Home and Office Devices. "By 2025, we expect the Asia/Pacific region will overtake North America in shipment volumes. Rising broadband penetration rates and an influx of vendors entering the market in the Asia/Pacific, Latin America, and EMEA regions will significantly contribute to the pace of adoption of smart home devices in these parts of the world."

Smart Home Device Shipments by Product Category, 2022 and 2026 (shipments in millions)

Category

2022
Shipments*

2022 Market
Share*

2026
Shipments*

2026 Market
Share*

2022-2026
CAGR*

Video Entertainment

302.9

33.7%

331.8

35.8%

2.3%

Home Monitoring/Security

190.5

21.2%

190.5

20.6%

9.7%

Smart Speaker

124.2

13.8%

124.2

13.4%

3.8%

Lighting

98.8

11.0%

98.8

10.7%

23.9%

Thermostat

24.9

2.8%

24.9

2.7%

5.4%

Others

156.1

17.4%

156.1

16.9%

10.3%

Total

897.4

100.0%

926.4

100.0%

8.6%

Source: IDC Worldwide Quarterly Smart Home Device Tracker, September 30, 2022

* Note: All values are forecast data.

IDC's Worldwide Quarterly Smart Home Device Tracker provides insightful analysis, quarterly market share data, and a five-year forecast for the smart home device market.

About IDC Trackers
IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC's Worldwide Smart Home Device Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.

About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

Source: International Data Corporation (IDC)

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