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29 Mar 2019

Double-Digit Growth Expected in the Smart Home Market, Says IDC

FRAMINGHAM, Mass., March 29, 2019 – The global market for smart home devices is expected to grow 26.9% year over year in 2019 to 832.7 million shipments, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Sustained growth is expected to continue with a compound annual growth rate (CAGR) of 16.9% over the 2019-2023 forecast period and nearly 1.6 billion devices shipped in 2023 as consumers adopt multiple devices within their homes and as global availability of products and services increases.

"2018 was all about getting products into consumers' homes and both Amazon and Google excelled at this through low-cost smart speakers and multiple bundles across device categories," said Jitesh Ubrani research manager for IDC Mobile Device Trackers. "However, 2019 will be more about tying the various devices together to form a more cohesive experience and more importantly, layering in additional services."

Though the smart home market will essentially be dominated by two companies, Amazon and Google, Apple is also expected to gain traction in the coming years. The existing popularity of iOS and macOS devices combined with the availability of Apple apps/services on non-Apple products will help the company slowly entice more consumers into their ecosystem while also attracting third parties to build compatible devices. Beyond Apple, Samsung is another company that is worth watching as its products extend into every category and the company continues to invest in Bixby and Tizen.

"One important trend to watch is how smart assistants become integrated throughout the home," said Ramon T. Llamas, research director for IDC's Consumer IoT Program. "Smart assistants will act as the point of contact with multiple smart home devices and essentially become the cornerstone of the smart home experience. Already we've been seeing that with smart speakers and this will eventually move on to appliances, thermostats, and all sorts of video entertainment."

Smart Home Devices by Category, 2019 and 2023 (shipments in millions)

Product Category

2019 Shipments*

2019 Market Share*

2023 Shipments*

2023 Market Share*

2019 – 2023* CAGR

Home Monitoring/Security

140.3

16.8%

351.7

22.6%

25.8%

Lighting

56.9

6.8%

183.2

11.8%

34.0%

Others

114.3

13.7%

269.4

17.3%

23.9%

Smart Speaker

144.3

17.3%

240.1

15.4%

13.6%

Thermostat

18.8

2.3%

37.5

2.4%

18.8%

Video Entertainment

358.1

43.0%

475.4

30.5%

7.3%

Total

832.7

100.0%

1,557.4

100.0%

16.9%

Source: IDC Worldwide Quarterly Smart Home Device Tracker, March 29, 2019

* Note: All data represents forecast values.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC's Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools.

For more information about IDC's Worldwide Quarterly Mobile Phone Tracker, please contact Kathy Nagamine at 650-350-6423 or knagamine@idc.com.

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading media, data and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn.



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Contacts:



Adam Wright

awright@idc.com

508-935-4316



Jitesh Ubrani

jubrani@idc.com

416-873-0315



Michael Shirer

press@idc.com

508-935-4200

Coverage

Contact
For more information, contact:

Jitesh Ubrani
jubrani@idc.com
416-873-0315

Ramon Llamas
rllamas@idc.com
508-935-4736

Michael Shirer
press@idc.com
508-935-4200