According to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker, worldwide shipments of smart home devices are now expected to decline by 2.6% in 2022 to 874 million units. Out of all smart devices, smart speakers and video entertainment devices such as TV and streaming devices will face the brunt of the decline.
“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, Smart Home and Office Devices.
Modest growth in shipments in 2023
IDC says that the global market may return to growth in 2023 but it will remain relatively low at 4.6%. The growth is expected to come from emerging markets as well as China.
As per Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers, even 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 US and China.”
“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,” Ubrani said.
What will sell?
As per IDC, home monitoring/security products such as cameras, doorbells, or door locks along with smart lighting and video entertainment products will account for the largest share. These products are also claimed to experience the highest growth rates within the smart home market.
The forecast comes at a time when companies such as Google and Amazon rolled out Matter support for a bunch of their smart devices. Matter is the new connectivity protocol that will allow users to connect compatible devices and systems with one another irrespective of their brand.
Last month, Tobin Richardson, president and chief executive of the Connectivity Standards Alliance (CSA), which created Matter, reportedly said that if the demand arises, it would set up a Matter lab in India. Matter lab tests the products for Matter compatibility.
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