In many ways, the proliferation of smart home devices has already forever changed the residential security industry, however; while these connected solutions have already become ubiquitous in the marketplace, demand for them is expected become even greater in the years ahead. According to the recently completed "Smart Home Device Database" from IHS Markit, the global market for smart home devices, which was estimated to be worth $17 billion in 2017, is forecast to reach $116 billion in 2022, growing at a compound annual growth rate of 46.8 percent.
Blake Kozak, Principal Analyst for Smart Home and Security Technology at IHS, also reports that the Americas was estimated to be the largest region for smart home devices in 2017, representing 44 percent of revenues. However, in 2022, the EMEA region is expected to be the largest region for smart home revenues, representing 43 percent of the global market.
Other findings from the report include:
- In terms of unit shipments, the Americas region was the largest in 2017, representing 43 percent of shipments. In 2022, the Asia region will be the largest in terms of annual smart home device shipments, representing 43 percent of shipments.
- For the smart home by major category, consumer electronics was the largest category in 2017 in terms of revenues, worth an estimated $11.8 billion globally. In terms of unit shipments, consumer electronics was the largest in 2017, followed by climate control and lighting. The primary drivers for the consumer electronics category is home audio (smart speakers) and appliances.
- The fastest growing category in terms of unit shipments is energy and water control, which will have a CAGR of 62.5 percent from 2017 through 2022. The primary driver for this category is water leak sensors, which will have a CAGR of about 83 percent from 2017 to 2022 due to projected adoption by insurance providers.
For more information about the report, click here.
