The macroeconomic environment will have a negative impact on shipments of smart home devices this year. However, although they will experience a slight drop in 2022, forecasts point to a slight growth for next year.
Worsening macroeconomic conditions have led to a reduction in the outlook for global shipments of smart home devices (smart home). As can be seen from the data handled by the IDC consultancy, shipments of these devices will experience a slight decrease in the global from 2022 to go back in 2023.
Specifically, estimates suggest that shipments of smart home devices will fall by 2.6% for the year overall to 874 million units. Smart speakers and video entertainment devices such as Smart TVs and streaming devices are bearing the brunt of the downturn.
According to Adam Wright, IDC’s senior director of smart home and office research, shipments of smart home devices have been significantly affected by ongoing supply chain disruptions.
“We are witnessing downward pressure on demand in 2022 as inflation continues to squeeze consumer budgets. Looking ahead, we expect volatility to continue to inhibit market growth in 2023, and beyond.”
The upward path of the smart home market
Although IDC forecasts that the global market for smart home devices will grow again in 2023, it will remain relatively flat, with point growth expectations of 4.6%, with most of the growth coming from emerging markets and China.
From the consultant point out that the smart speakers have been the biggest contributors to driving the smart home market, though the success of these products has largely frayed for consumers in developed markets like the US and China, with shipments expected to decline in the long term .
The smart device market will resume the upward path in 2023 and have a slight rise of 4.6%
Smart speakers will now be reliant on emerging markets and places like Europe, where language and a lack of services have been a barrier to adoption in the past.
Among the other form factors, surveillance/home security products such as cameras, doorbells or door locks, as well as smart lighting and video entertainment products will account for the largest share and experience the highest growth rates within the smart home market.
With all this, this 2022 video devices They will capture most of the market with 296.1 million units sold and a market share of 33.9%. Forecasts suggest that this segment of the market will continue to be the dominant one until 2026, although the rate will drop to 27.4%.
In second position arehome security devices, with 188.6 million units sold and a market share of 121.6% worldwide. It is followed by smart lighting devices that account for 10.8% of the market with 94.7 million units sold this year. However, its expected growth in the coming years will lead it to reach a market share of 18%.
smart thermostats they will lose some prominence this 2022 since they will go from having a market share of 2.8% to a share of 2.6%,
However, IDC is confident that, despite the slowdown that the smart home device market will experience this year, by 2023 it will resume the upward path and have a slight rise of 4.6%.