IT and Business Insights for SMB Solution Providers

Global Smart Home Market to Top $14B in 2017, IHS Markit Says

The research firm projects 10% of households will have deployed smart home devices by 2025. By SSI Staff

The smart home market in the Americas region has seen significant growth since 2010, when fewer than 1% of homes had connected devices such as thermostats, lighting, security and entertainment, according to IHS Markit. By the end of 2017, nearly 7% of households in the region will have a connected home, averaging six devices per home.

Globally, in 2025, 10% of households are forecast to be considered smart homes. IHS projects the global market will be worth $14.7 billion by the end of the year, with the Americas region representing 48% of revenues.

When excluding large ticket items, such as major appliances, the global market size for smart home devices is forecast to be worth $3.3 billion by the end of 2017, reaching $9.4 billion in 2021.

Although the EMEA and Americas regions are expected to represent more than 70% of revenues for smart devices over the next five years, Asia is expected to dominate in terms of unit shipments. In 2021, the Asia region is expected to represent about 46% of unit shipments. Leading the unit shipments in Asia in 2021 will include light bulbs, air quality sensors and video cameras.

Top 5 Players Account for 36% of Revenue

Nest, Amazon, Honeywell, Xiaomi and Netgear rounded out the top five for smart home revenue, accounting for 36% in 2016 when excluding appliances, according to the device database of the IHS Markit smart home intelligence service. The top five players for unit shipments in 2016 accounted for 34% of global unit shipments and included Xiaomi, Amazon, Honeywell, Nest and Koninklijke Philips N.V.

Globally, 19 manufacturers had more than 500,000 annual smart home device shipments in 2016. Forty-six manufacturers had more than $10 million in revenue in 2016, when excluding appliances.

The top smart home devices to watch in terms of unit shipment growth, include radiator valves, air quality sensors, smart speakers and appliances.

This article was originally published by our content partner Security Sales & Integration.