Worldwide Smart Home Devices Market Up 11.7% in 2021 with Double-Digit Growth Forecast Through 2026
April 27, 2022 | IDCEstimated reading time: 2 minutes
The worldwide market for smart home devices grew 11.7% in 2021 compared to 2020 with more than 895 million devices shipped, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Notwithstanding the market volatility due to the coronavirus pandemic and its impact on supply chains as well as demand-side shocks, IDC anticipates that the worldwide smart home device market will see steady growth over the next five years as smart home users expand their smart home ecosystems and seek more sophisticated connected experiences. The market's growth will also be driven by high broadband penetration and increasing numbers of wireless home networks, although consumer concerns around privacy, security, costs, and interoperability will constrain the market's development for the foreseeable future.
"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."
North America held the largest share of unit shipments in 2021 and grew 11.4% year-over-year. The Asia/Pacific region was the second largest segment by shipment volume with 31% of shipments and had a year-over-year growth rate of 10.8%. 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."
Networked video entertainment devices – such as smart TVs, streaming sticks, and internet-connected set-top boxes – held the largest volume of shipments with 34.7% share and grew 4.8% year-over-year in 2021. Smart lighting devices are forecast to be the fastest growing category of devices with a five-year compound annual growth rate (CAGR) of 23.6%. Driving the market's growth at a global level is rising broadband penetration, rising disposable incomes, and rising consumer awareness of smart home devices and the cost savings, convenience, and energy efficiencies that they can deliver.
Suggested Items
IDTechEx Report on Quantum Technology: Nano-scale Physics for Massive Market Impact
04/30/2024 | PRNewswireThe quantum technology market leverages nano-scale physics to create revolutionary new devices for computing, sensing, and communications. Across the industry, quantum technology offers a paradigm shift in performance compared with incumbent solutions.
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.
Amphenol Reports Q1 2024 Results, Announces New Stock Repurchase Program
04/26/2024 | BUSINESS WIREAmphenol Corporation reported first quarter 2024 results. In addition, the Company is announcing a new three-year, $2 billion stock repurchase program.
Chinese Smartphone Market Maintains its Recovery Momentum at 6.5% Growth in 1Q24,
04/26/2024 | IDCAccording to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China smartphone shipments grew 6.5% year over year (YoY) to 69.3 million units in 1Q24.
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).