Global smart home device market to drop 2.6% in 2022

Worldwide shipment of smart home devices are expected to decrease by 2.6 percent in 2022 to 874 million units, according to IDC.

Facing the brunt due to worsening worldwide macroeconomic situation are smart speakers and video entertainment devices such as TV and streaming devices.

“Shipments of smart home devices have been impacted significantly by ongoing supply chain disruptions. Moreover, we’re witnessing downward pressure on demand in 2022 as inflation continues to squeeze consumers’ wallets. Looking ahead, we expect volatility will continue to inhibit the market’s growth in 2023 and beyond,” said Adam Wright, Senior Research Manager of Smart Home and Office Devices at IDC.

The outlook for 2023 is slightly better with projected 4.6 percent growth, most of which will come from emerging markets and China.

“Though smart speakers arguably helped launch the smart home category, the shine of these products has largely worn off for consumers in developed markets such as the United States and China with shipments expected to decline in the long run. Smart speakers will now rely on emerging markets and places like Europe where language and lack of services have been a barrier to adoption in the past,” said Jitesh Ubrani, Research Manager for IDC’s Mobility and Consumer Device Trackers.

Among the other form factors, home monitoring/security products such as cameras, doorbells, or door locks, as well as smart lighting and video entertainment products will account for the largest share and experience the highest growth rates within the smart home market.

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