The smart home market is forecast to only grow by 0.3% this year to about $121.4 billion, according to new data from market research firm Omdia.
However, the number of smart home households has surpassed 88.5 million —a year-over-year increase of 25%. Nearly 500 million smart home devices were shipped globally in 2020 with 54% going to existing users.
“What this means for the smart home is that existing users value their connected devices and continue to augment their systems with new and replacement products,” said Blake Kozak, senior principal analyst for the smart home at Omdia. “Despite initial concerns by manufacturers, COVID-19 has not had the sharp impact that was expected, instead consumers have shifted their spending from travel, entertainment and eating in restaurants to improving the home, which has included smart home devices.”