Entertainment and security to drive smart home growth – study
SMART HOMES make life easier for people and help them live a comfortable and convenient life. The technology is something top companies like Amazon and Google are working on fine-tuning, and the future, for such devices is bright.
Last year, 433.1 million smart home devices were shipped worldwide. According to IDC, the smart home devices market will grow at a compound annual growth rate (CAGR) of 18.5 percent and will ship 939.7 million devices 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, Mobile Device Trackers, IDC.
The analyst feels that there’s less of a focus on having a central hub, and apps are at the center of the interface as hardware makers race to create interoperability with smart assistants like Alexa, Siri, or Google Assistant.
On the other hand, consumers are expected to remain somewhat hesitant to adopting smart assistants as they expect a more natural user interface to lead 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, Consumer IoT Program, IDC.
According to the research firm, video entertainment, smart speakers, and home monitoring and security will lead the smart home devices market till 2022.
IDC believes that this segment, with devices such as smart TVs, digital media adapters, and other IP-connected video devices, will deliver a CAGR of 8.3 percent for unit shipments over the 2017–2022 forecast period.
These devices are also expected to capture around three-quarters of the dollar value of the entire smart home market as the average sale price (ASP) for TVs will be among the highest.
Leaders in the TV category during 2017 were Samsung and LG while category leaders for digital media adapters during the same period were, in order, Amazon, Google, and Roku.
The increasing adoption of smart television sets brings new opportunity for TV advertisers. By 2021, eMarketer projects 114.3 million smart TVs will be in American homes. Get more in the @TVREV The State of Smart TV Advertising report: https://t.co/0HrqstUZ85 pic.twitter.com/nm8xQORb2I
— Fabric Media (@fabric_media) March 29, 2018
According to IDC’s categorization, this segment comprised of devices such as connected door locks, cameras, moisture sensors, doorbells.
IDC expects that this will remain the second largest category in terms of unit shipments through 2022 as products become easier to deploy in the home and will not require consumers to have a “DIY attitude” to integrate these products with their smart assistants and other devices.
With built-in smart assistants, smart speakers have captured the spotlight recently as major new brands like Apple have entered the market.
In addition, Amazon and Google have been quick to respond by offering additional models and price points through their first-party speakers and by partnering with numerous other brands to bring Alexa- or Google Assistant-enabled speakers.
According to IDC, what remains to be seen is how long the partners can survive since the sale of hardware stands to be the smallest part of the overall revenue associated with this category.
“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,” expressed Wright.