The market for smart home devices is due for significant growth in the next five years, growing to 13.5 billion devices in active use compared to an expected 7.4 billion at the end of 2020, according to new data from Juniper Research.
Smart entertainment devices will contribute the bulk of the revenue for the smart home devices during this forecast period, reaching $230 billion by 2025. This includes voice assistant capabilities that have become a way to control digital entertainment devices including TVs, game consoles, smart thermostats, smart lighting and much more, all linked in a smart home ecosystem.
Juniper said that the smart home will become increasingly dependent on discrete purchases rather than on holistic smart home packages that were more common in the early years of the market. Of these devices, 94% of them will be in use from individual purchases with less than 50 million households globally having a smart home subscription in 2025.
Despite this growth, smart home automation will only be used in 11% of households globally in 2025 primarily with lightbulbs and locks, which will not need to be replaced on a regular basis.
“The value in this segment is being able to encourage use throughout the home; leading to a high level of value for each adopter,” said James Moar, analyst for Juniper Research. “Outside of entertainment, adoption will come more from vendors making them the default option, rather than the technology encouraging replacement of utilitarian devices.”
In smart metering, the market will grow at an average rate of 2% per year worldwide compared to 12% for smart home entertainment devices. The reason for this might be due to these meters requiring continued support form regulatory authorities to move much further, especially outside of Europe.
The full research can be found in Juniper’s Smart Home Devices: Business Models, Market Trends & Forecasts 2020-2025 report.