As CDG clients plot their broadband future, the smart home is an important category to understand. Customers are increasingly buying and installing smart devices in their home and research from IDC reveals the trend is accelerating, and video entertainment devices from Fire TV, Roku, and others are key to this trend.
IDC now forecasts a 23.5% growth rate this year for smart home devices amounting to nearly 815 million device shipments.
By 2023, annual shipments will be more than 1.39 billion, representing a a five-year compound annual growth rate (CAGR) of 14.4%, according to the IDC forecast.
The U.S. will have the largest share of smart home device shipments globally through 2023, though CAGR will be higher elsewhere, according to IDC. U.S. shipments will grow at a 9.5 CAGR over the forecast period, putting total U.S. shipments at 560 million units in 2023.
“Content and services are going be at the forefront for the smart home market as video entertainment products such as the Fire TV or Chromecast will serve as an on-ramp for consumers entering the world of connected home products,” said Jitesh Ubrani, research manager for IDC’s Mobile Device Trackers, in a prepared statement.
Driving smart home equipment shipments will be video entertainment devices, which are expected to comprise 29.9% of all shipments in 2023, thanks to falling prices and advanced functionality, including 8K, higher refresh rates, HDR, larger sizes, and integration with smart assistants and streaming platforms.
Right behind video entertainment devices will be home monitoring/security devices like smart cameras and smart locks, which IDC expects will account for 22.1% of the shipments in 2023 with a CAGR of 18.4%.
However, smart speakers and displays are nearing their peaks, and will have 8.7% year-over-year growth in 2022 and 4.7% in 2023.