Audio and Video

2023 a bad year for smart home devices

28 June 2023
Source: IDC

Global shipments of smart home devices are expected to suffer a bad 2023 with a decline of 1.8% due to weak customer demand and economic instability, according to new research from International Data Corp (IDC).

The worse news is that IDC forecasts that the market decline will last into 2024 before the market returns to growth and continues through 2027. By this time, smart home device shipments will reach 1.1 billion shipments.

"While there have been pockets of growth, the market has largely stalled due to lack of meaningful upgrades between one generation of devices and the next," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers. "Even the launch of the Matter standard has not been enough to spur demand despite offering some ease of use."

Among smart home devices, smart speakers and networked video entertainment devices are facing the steepest declines, IDC forecasts. Luckily many other smart home categories such as lighting, thermostats and home monitoring and security devices are expected to see high growth over the next five years. This growth will be due to rising consumer awareness as well as the rise of emerging markets, IDC said.

"The worldwide smart home market is witnessing uneven growth as some regions fare better than others," said Adam Wright, research manager, smart home and office devices at IDC. "In more mature markets like the U.S., high installed bases of devices coupled with issues of underutilization, ongoing disruptions form supply chains, logistics issues, high inflation, and record high credit card debt have impacted the market's growth in 2022 and the first part of 2023 and are expected to continue to put downward pressure on the market for the foreseeable future.”

To contact the author of this article, email PBrown@globalspec.com


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