HIRI Smart Home Market HERO

State of the Smart Home Market

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.

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