09 Dec 2021

Worldwide Smart Home Devices Market Grew 10.3% in Third Quarter 2021, Says IDC

NEEDHAM, Mass., December 9, 2021 – The worldwide market for smart home devices grew 10.3% year over year in the third quarter of 2021 (3Q21) with more than 221.8 million device shipments, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Despite persistent supply chain disruptions, unemployment, and an uneven economic recovery, consumer demand remained high for smart home devices like smart TVs, smart speakers, and other devices.

"The smart home market continues to fare better than other consumer goods during the ongoing Covid-19 pandemic, although to varying degrees in different regions," said Adam Wright, senior research analyst, Smart Home and Office Devices. "By and large, consumers have shifted their spending priorities from other areas like vacations and going out to eat to focus on adding more comfort, conveniences, and entertainment at home."

The United States held the largest share of unit shipments in the third quarter and grew 9.5% quarter-over-quarter. China was the second-largest country by shipment volume with 24.7% of shipments but had negative growth of 5.2% compared to 2Q21. Western Europe and Latin America posted solid sequential growth of 17.9% and 15.0%, respectively.

"Not only are consumers buying more devices, but they're also buying up the stack as average selling prices (ASPs) have increased upwards of 3%," said Jitesh Ubrani, research manager for IDC's Mobile Device Trackers. "The price increases are driven in part by the supply disruptions but new products and improved features across device types have also played a key role. ASPs for notable categories such as TVs increased by almost 7% as OLED displays grew in popularity. Similarly, smart displays, which typically cost more, are also outpacing traditional smart speakers."

Video entertainment devices like smart TVs and streaming players maintained the largest volume of shipments in the third quarter, accounting for 35.3% of all shipments. Home monitoring/security devices like smart cameras and smart locks accounted for 20.4% of shipments and grew 13.5%. Notwithstanding the ongoing health crisis, the most salient factors driving the market's growth at a global level include rising broadband penetration, rising disposable incomes, and a rapidly rising consumer awareness of smart home devices – driven in part by extensive marketing and consumer education campaigns by leading vendors in the market. However, the market's growth continues to be constrained by ongoing concerns about security and privacy, as well as consumers' price sensitivity to upfront and ongoing costs of devices and services.

Smart Home Devices by Shipment Volume, Market Share, and Year-Over-Year Growth, Q3 2021 (shipments in millions)

Company

3Q21 Shipments

3Q21 Market Share

3Q20 Shipments

3Q20 Market Share

Year-Over-Year Growth

Video Entertainment

78.3

35.3%

80.1

39.8%

-2.3%

Home Monitoring/Security

45.2

20.4%

39.8

19.8%

13.5%

Smart Speaker

32.0

14.4%

29.9

14.9%

7.1%

Lighting

21.1

9.5%

14.0

7.0%

50.5%

Thermostat

5.6

2.5%

4.5

2.2%

23.9%

Others

39.7

17.9%

32.8

16.3%

21.0%

Total

221.8

100.0%

201.2

100.0%

10.3%

Source: IDC Worldwide Quarterly Smart Home Device Tracker, December 9, 2021

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 Smart Home Device 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 1,200 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, 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 tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.



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