Smart speakers are expected to lead the charge as device shipments in the connected home market more than double over the next three years, research company IDC predicted.
IDC forecast smart home device shipments will leap from 433.1 million in 2017 to 939.7 million in 2022. Smart speakers are expected to be out in front of the growth, with a compound annual growth rate (CAGR) of 32 per cent and a segment value which will more than triple from $4.4 billion in 2017 to $17.4 billion in 2022.
IDC senior research analyst Adam Wright noted smart speaker assistant platforms including Amazon’s Alexa and Google Assistant are becoming integral to the fabric of the connected home.
“Whether in the form of a smart speaker or embedded in a thermostat, fridge, TV or any other device, smart assistants are quickly becoming the cornerstone of consumer IoT by enhancing the accessibility, use and functionality of connected devices, which will noticeably boost adoption rates in the near future.”
Smart lighting, home security systems and thermostats are all also expected to experience double-digit growth over the forecast period.
Behind speakers, smart lighting will have the second-highest growth rate, with a CAGR of 26 per cent and a market value which will triple from $1.1 billion to $3.5 billion by 2022. Home security will follow with a CAGR of 23 per cent propelling the category’s value from $4.2 billion in 2017 to $12.1 billion in 2022.
Finally, IDC estimated connected thermostats will grow at a 17 per cent CAGR as the segment’s value increases from $1.8 billion to $1.9 billion.