According to Futuresource Consulting, global smart home device shipments reach "nearly" 110 million units, bringing revenues worth around $17 billion and "strong" growth in both volume and value.
“Smart home devices have clearly captured the attention of consumers. There’s no doubt the market is making its presence felt, finishing 2018 on fine form,” the analyst says. “The way smart devices help with daily tasks, improve security and generate savings in energy bills are all reasons that this is the fastest growing area of consumer electronics, on track to finish the year at 39% volume growth and 28% value growth.”
Security and monitoring devices-- smart cameras, video doorbells, smart locks and smart detectors-- account for 60% of total 2018 device shipments, making the largest smart home category. The category also boasts the highest ASPs, leading to 2018 revenues worth $10bn. According to Futuresource, penetration rates will remain strong in the near future, and 7% of homes worldwide will have at least one smart security device by 2022.
Climate control is the 2nd largest segment, accounting for around 15% of shipments. However climate control is the most common first smart home installation, thanks to how easily consumers can realise the benefits of such devices, as well as the recent marketing push from utility providers.
As for the other hot product category, smart speakers, Futuresource classifies such devices as home audio products and as such does not add them to smart home device numbers. That said, the analyst describes smart speakers as "an important driving force in the smart home," with 2018 shipments reaching over 50m units. The figure should double by 2022, as customers in territories beyond N. America, W. Europe and China realise the possibilities.
However, smart speakers might become obsolete in the longer term-- after all, more devices are receiving built-in microphones. Built-in voice has been growing since 2017, and Futuresource predicts shipments of devices with voice built-in will reach 60m by 2022.
The two remaining smart home categories, lighting and power, have a share of around 10% or less in shipment terms, yet hold strong growth potential. Relatively low ASPs and clear use cases make for an attractive proposition customers can use in all rooms of the house. Smart lighting is moving to the bathroom and garden, while smart plugs easily allow the integration of any device into a home automation system.
“The smart home is becoming a global phenomenon, especially for homes in the United States, Europe and parts of Asia Pacific, and the prospects for vendors continue to hold promise," the analyst concludes. "The future is full of smart home opportunities, perhaps not from new use cases, but from extending the smart home into products and rooms that have as yet not been connected.”
Go Smart Home Devices to Exceed 100 Million Shipments in 2018
