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Smart home device shipments to push wireless connectivity in the next 5 years

15 January 2020

Internet of things (IoT) devices, specifically those designed for the smart home, are forecasted to push device connectivity shipments to new heights in the coming years, according to a new report from ABI Research.

Smart home devices are set to account for more than 13% of Bluetooth device shipments by 2024, or about 815 million Bluetooth-enabled products. This will include all device types such as smart lighting, voice-control front ends, smart appliances and sensors.

ABI said these devices will propel the market to grow from 250 million units in 2019 to become one of Bluetooth’s largest market opportunities in the next five years.

“The smart home market is beginning to ramp up, and strong growth for wireless devices and services is anticipated over the next few years as an increasing number of homes deploy solutions,” said Andrew Zignani, principal analyst for Bluetooth at ABI Research. “Bluetooth’s growing presence in voice control front ends from the likes of Amazon, Alibaba, Google, Baidu and Xiaomi makes up a significant portion of this growth, alongside increased traction within smart lighting, smart appliances, door locks, sensors and many other device types.”

Other wireless connectivity options will take advantage of this increase in smart home devices including Wi-Fi, 802.15.4 and Z-Wave and are all forecast to see device shipments grow between now and 2024.

“The smart home market is made up of numerous different device types, each with their own specific throughput, power, range and topology requirements,” Zignani said. “Smart lighting device shipments will break the 300-million-unit barrier by 2024, with 60% of these based on 802.15.4 technology. Bluetooth and Wi-Fi will account for 30% and 8%, respectively. Likewise, Wi-Fi will be nearly ubiquitous in smart appliances alongside Bluetooth, while 802.15.4 and Z-Wave will gain traction in low power sensor devices.”

These wireless connectivity options will also see growth in other areas of IoT such as beacons and personal trackers, healthcare devices, commercial building automation and lighting as well as wearables.

Learn more about the forecast for wireless connectivity with ABI’s Wireless Connectivity Technology Segmentation and Addressable Markets.

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