BOSTON--(BUSINESS WIRE)--The increasing popularity of the smart home is confirmed today by new research from Strategy Analytics showing that global demand for smart home devices will exceed sales of smartphones by 2023. Consumers worldwide bought 663 million smart home devices in 2017, and this will increase to 1.94 billion in 2023, when sales of smartphones will be 1.86 billion. The research, “2018 Global Smart Home Device Forecast”, includes various categories of smart home device, including smart speakers, security cameras, smart light bulbs, smart door locks, digital thermostats, gateways and sensor devices. Demand is being driven by lower device prices, compelling user applications and services, improved user experience and rapid technology development.
The fastest growing category in 2018 will be smart speakers, such as Amazon Alexa and Google Home, with a growth rate of 109%. Other fast growing segments include smart light bulbs (such as the Philips Hue), connected smoke detectors, smart door locks (such as Amazon’s August Smart Lock), gateways and hubs and security cameras (such as Google’s Nest Cam).
Fast Growing Smart Home Device Categories
Global Annual Sales of Smart Home
Smart light bulbs
|Connected smoke detectors||35||45||29%|
|Smart door locks||9||11||27%|
|Smart home gateways and hubs||20||25||25%|
|Home security cameras||43||54||25%|
|Other smart home devices (includes sensors and detectors, smart switches and plugs, thermostats, controllers, digital health and other devices)||504||599||19%|
Source: Strategy Analytics’ Smart Home Strategies service, June 2018
“The emergence of the smart home as a popular concept in recent years has led to a wealth of new device opportunities for vendors and technology developers,” says Bill Ablondi, Director, Smart Home Strategies. “The smart home device landscape is still in its formative stage and multiple players are fighting to establish a presence. The scale of future demand suggests that there are huge opportunities for vendors which are able to take the lead in improving how people manage and organize their homes.”
The report concludes that successful smart home device vendors should identify which barriers to adoption they need to address to unlock growth, which bundles of products and services will resonate with consumers, and toward which segments of the market they should focus their resources.
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for emerging technology, mobile and wireless, digital consumer and automotive electronics companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights for enterprise success.
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