According to Strategy Analytics, global consumer spending on smart home related hardware, services and installation fees will reach $103 billion in 2019 and grow at an 11% CAGR to $157 billion by 2023. The research house predicts that spending on smart home devices will account for 54% of the total or $55 billion in 2019 and grow at a 10% CAGR to $81 billion by 2023.
Interactive security is a market driver in the United States, led by ADT, Comcast and Vivint. In Western Europe, Centrica Connected Homes, Deutsche Telekom and Verisure are driving the market with remote self-monitoring, energy management and interactive security offerings. In Asia, Korea Telecom and LG U+ are among the companies that have amassed millions of smart home subscribers in Korea; Xiaomi and China Telecom are the most active in China, and Panasonic and ITSCOM in Japan.
At the end of 2018, there were more than 200 million homes globally with at least one smart home device; by 2023 there are expected to be an additional 100 million smart homes as the market reaches 30% of all broadband households globally. By the end of 2023, there are expected to be more than 6.4 billion smart home devices in use or an average of 21 per smart home.
Jack Narcotta, senior industry analyst, Smart Home Strategies, said: "Unit sales of smart home devices are growing at more than 20% per year between 2018 and 2023. The electrical devices category is the volume leader over the forecast period, followed by smart bulbs. Electrical devices as a whole will also generate the most revenue over the forecast period followed by surveillance cameras."
Bill Ablondi, director, Smart Home Strategies, said: "Adoption of smart home solutions is continuing to grow, driven by increased awareness of the capabilities and benefits of the solutions. Prices for both services, e.g. monitored security, and devices have declined, making smart home products and services more affordable for a wider range of consumers."