Smart home shipments will return in 2023

After two years of slow growth, the global smart home market is expected to resume its upward trajectory in 2023.

According to a new report from Omdia, the global installed base of smart home devices is expected to exceed 2 billion devices in 2022, after slowing growth in 2021-22.

The market has struggled over the past two years due to stagnant wages, rising unemployment and a sharp drop in expected retail sales, especially in 2022.

However, strong growth, comparable to pre-pandemic levels, is expected to return from 2023, driven by increased demand for energy management solutions and the impending publication of the Matter standard.

The report goes on to note that smart speakers had the most global shipments in 2021, with 195 million followed by lighting, plugs/switches and connected health devices. Devices expected to experience the fastest growth over the next five years include water leak sensors/shutoff valves, connected major appliances, outlets/switches, air quality monitors and smart door locks, all are expected to have a CAGR above 30% from 2021 to 2026.

The research house estimated in 2021 that around 55% of broadband homes in the US had smart home devices installed, falling to 21% for EMEA. The Americas had a penetration rate of 44% while Asia and Oceania had a penetration rate of around 14% in 2021.

Xiaomi was estimated to be the market leader in 2021, followed by Alibaba, Amazon, Google and Baidu. All of the top five brands specialize in smart speakers, while the next four brands, IKEA, Sengled, Ledvance and Signify, mainly specialize in lighting applications.

Omdia’s report also predicts that Matter’s impact should be more gradual than originally anticipated. Omdia predicts that there will be approximately 424 million devices that could be compatible with Matter, assuming that 100% of those devices shipped in 2023 are Matter compatible. This equates to approximately 44% of global device shipments in 2023.

Blake Kozak, Senior Principal Analyst at Omdia, said: “These are exciting times for the smart home industry as brands innovate rapidly and produce devices that combine advanced features, such as facial recognition and video analysis with door locks and the inclusion of radar technology in intelligent systems. speakers and thermostats. Brands are also making strides in terms of partnerships and acquisitions, such as ADT acquiring Sunpro Solar and IOTAS. Advances in connectivity standards such as ultra-wideband, Thread, and NB-IoT will also bring new use cases to the smart home market, improving both accuracy and distance.

Mary I. Bruner