According to the International Data Corporation (IDC), the global smart home devices market grew by 11.7% in 2021 compared to the year before. In the year, IDC reports that 895 million smart home devices we shipped as customers seek more connected experiences in their homes. One of the main reasons for the growth of this market was that more people have a good broadband connection than before and more people are using wireless networks instead of wired connections.
Over the next five years, IDC expects the market to continue growing steadily, though, factors such as privacy, security, costs, and interoperability could hamper the market. These issues will require an education drive on the part of businesses to build trust, governments will have to pass legislation to ensure companies release secure products, costs will need to be kept low, and manufacturers will need to make sure their products can talk to other smart home equipment.
Providing comment for IDC, Adam Wright, senior research analyst, Internet of Things: Consumer, said:
“The notion of the 'smart home' is well and truly mainstream in many parts of the world now. 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.”
IDC has split the smart home category into video entertainment, home monitoring/security, lighting, and others. In 2021, video entertainment smart home devices made up 35% of the smart home market, home monitoring/security made up 21%, lighting made up 10%, and others accounted for the final 35%. According to IDC’s 2026 forecast, video entertainment is set to fall to 26% of the market while lighting could jump to 17% with others climbing to 36%. Overall, smart home shipments could rise from 895 million in 2021 to 1.44 billion in 2026 as the market matures.