State of the Smart Home Market
Oct 22, 2019
A Smart Look at the State of the Smart Home
Whether you’re on a first-name basis with Siri, Alexa or Google, you’ve likely spoken to at least one smart home assistant device in your home or office. According to the 2019 State of the Smart Home report, the United States smart home devices market was worth $10.4 billion in 2018 and is forecasted to exceed $33 billion in 2022.
As the market continues to grow at breakneck speed, companies race to innovate new product capabilities and uses, imagining what’s next in smart controls for lighting, energy efficiency and more.
IHS Markit has defined the scope of the smart home market to include all devices that have digital connectivity and act as part of a smart home, including point devices limited to Bluetooth, as well as devices that are part of a complete ecosystem of devices with machine-to-machine (M2M) connectivity. Research indicates that companies will seek to lower costs and increase accessibility to products while increasing functionality of existing devices, such as new application features.
Here are a few highlights from the smart home study:
- Consumer electronics and lighting lead the market in sales, and energy efficiency products are anticipated to greatly expand through 2022.
- The number of smart home product manufacturers will likely shrink as companies look for smaller, lower-cost products with more services to offer retail consumers.
- Consumer electronics was the largest category in 2018 and is forecasted to remain the largest through 2022, with more than 75% of revenues each year.
- Not just single-family homes: Multifamily property management teams are motivated to install smart home technology for energy efficiency benefits.
- Wi-Fi in the smart home could see big enhancements in 2020 and 2021. This will affect product capabilities across the market.
For full access to the smart home report and other proprietary research, join HIRI.
