Smart speakers to drive smart home devices growth - 2 billion units by this year

Amazon Echo Dot
(Image credit: Amazon)

Smart speakers had the most global shipments in 2021, with 195 million followed by lighting, plugs/switches and connected health devices. And the global smart home market is expected to pick up and reach pre-pandemic levels of growth only in 2023. It'll be driven by increased demand for energy management solutions and the impending release of the Matter standard (it's the open source interoperability standard and names like Amazon, Apple, and Google are in it, which means that seamless integration may finally be within reach).

According to the latest smart home device research from Omdia, the devices expected to grow fast over the next five years include water leak sensors/shutoff valves, connected major home appliances, plugs/switches, air quality monitors and smart door locks --- all projected to grow more than 30% CAGR from 2021 to 2026.

Asia is slow in adapting to smart home devices

In terms of household penetration of smart home devices, Asia lags behind, according to Omdia. Its numbers say that about 55% of broadband households in the US had smart home devices installed. For Europe, the Middle East, and the Africa region, the corresponding number was 21%. Asia and Oceania had a dismal penetration rate of about 14% in 2021.

"In terms of market share for unit shipments, 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, specialize mostly in lighting applications," Omdia said. The next few years will also prove difficult for many brands as costs continue to rise.

Omdia forecasts that Mater standard impact would be slow, to begin with. It said that there will be about 424 million devices that could be Matter capable, which would be around 44% of global device shipments in 2023. Omdia, however, believes Matter will have a positive impact on smart home adoption.

Blake Kozak, Senior Principal Analyst, Omdia said: "It is an exciting time for the smart home industry as brands rapidly innovate and produce devices that combine advanced features, like facial recognition and video analytics with door locks and the inclusion of radar technology in smart speakers and thermostats."

Balakumar K
Senior Editor

Over three decades as a journalist covering current affairs, politics, sports and now technology. Former Editor of News Today, writer of humour columns across publications and a hardcore cricket and cinema enthusiast. He writes about technology trends and suggest movies and shows to watch on OTT platforms. 

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