State of the Smart Home

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This report assess­es the US mar­ket for smart-home devices and the route to mar­ket. It includes mar­ket esti­mates for 2017 through 2020, mar­ket fore­casts from 2021 through 2025 in terms of rev­enue, and unit ship­ments with splits by route to mar­ket. Omdia defines the smart-home market’s scope to include all devices that have dig­i­tal con­nec­tiv­i­ty and act as part of a smart home. This includes point­ing devices lim­it­ed to Blue­tooth, and devices that are part of a com­plete ecosys­tem of devices with machine-to-machine (M2M) con­nec­tiv­i­ty. This report also defines a device as smart if it can be dig­i­tal­ly commanded/​controlled.

Key findings

  • The glob­al smart-home mar­ket was worth an esti­mat­ed $58.5bn in 2020 and is fore­cast to exceed $167bn in 2025, with a CAGR of 23.3% from 2020 to 2025.
  • Although the first half of 2020 was dif­fi­cult for most smart-home man­u­fac­tur­ers and ser­vice providers, the sec­ond half pre­sent­ed oppor­tu­ni­ties on a par with pre­vi­ous years. In fact, Omdia esti­mat­ed that the glob­al smart-home mar­ket grew by about 13% (rev­enue) in 2020 com­pared with 2019.
  • In terms of unit ship­ments, an esti­mat­ed 456 mil­lion smart-home devices were shipped glob­al­ly in 2020, a num­ber that is fore­cast to exceed 1.2 bil­lion in 2025.
  • In 2020, the con­sumer elec­tron­ics device cat­e­go­ry was the largest in the Amer­i­c­as region. It was worth about $11bn and rep­re­sent­ed 59% of smart-home device rev­enue. The sec­ond-largest cat­e­go­ry in 2020 was cli­mate con­trol, worth about $4bn.
  • In terms of route to mar­ket, Omdia includ­ed six cat­e­gories: mul­ti­ple sys­tem oper­a­tors (MSO), secu­ri­ty providers (ADT), retail (online and brick-and-mor­tar), builders (KB Home), util­i­ties (Xcel Ener­gy), and oth­er. Oth­er” includes high-end tech­nol­o­gy spe­cial­ists (Control4), insur­ance com­pa­nies (State Farm), tradespeople/​general con­trac­tors (plumbers/​electricians/​HVAC), and mul­ti-dwelling units (MDU).
  • Omdia found that retail was the most pop­u­lar chan­nel in 2020, rep­re­sent­ing 88% of smart-home device ship­ments in the US. Although retail will remain the pri­ma­ry chan­nel for smart-home devices through 2025, builders and the oth­er” chan­nel will com­bine to make up 15% of device ship­ments in 2025, up from 1.4% in 2017.
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Smart home devices HIRI 2021 customer
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