By Charles Abuede
- Industry’s revenues climbed to $77bn amid Covid-19 crisis
The rising importance of home monitoring and security systems around the world have significantly driven the global smart home market into witnessing impressive growth in recent years owing to the adoption of global devices and the increasing need for energy-saving solutions. This has led to a surge in market revenueby 16 per cent year on year to $77 billion in 2020 as the increasing trend is set to continue in 2021 with revenue growth of 28 per cent to $99.5 billion.
Smart home households will rise to 258m in 2021
A survey by Statista revealed that the global smart home market reached $39.2 billion in 2017 and jumped within two years to $66.4 billion by almost 70 per cent. The official data further showed that despite the Covid-19 crisis, there was an impressive growth within the sector in 2020 with the 16 per cent revenue surge year on year. Nevertheless, the noticeable upward trend is set to persist in the next five years with a 127 per cent jump in the global smart homes revenues to almost $176 billion in 2025.
Consequently, the smart appliances which represent the largest segment of the market is projected to generate $37.1 billion in 2021 revenue, a 30 per cent jump in a 12 months’ period.
While the control and connectivity devices are forecast to hit $19.4 billion in revenue this year, 30 per cent more than in 2020, the security systems, home entertainment, comfort and lightening, and energy management solutions follow with $15.1 billion, $11.3 billion, $8.4 billion, and $7.9 billion, respectively.
Further breakdown of the Statista survey also revealed that the number of households in the smart home segment significantly enlarged over the years, rising from 141 million in 2017 to 221.7 million in 2020. However, the figure is expected to hit over 258 million in 2021 and continue rising to 483 million by 2025.
Five largest smart home markets to hit $65.1bn in 2021
A cursory analysis based on geography also revealed that the United States, which is the largest smart home market globally, is expected to generate almost 30 per cent of combined revenues this year, while the market is forecast to grow by 23 per cent year on year to reach $28.8 billion in 2021.
Also, the Chinese market, ranked as the second-largest globally, is valued at $18 billion in smart home revenues, 29 per cent more than a year ago. The UK market, regarded as the third-largest market globally, is expected to grow by 28 per cent year on year and generate $6.8 billion in revenue in 2021, while Germany and Japan followed with $6.1 billion and $5.4 billion, respectively.
Meanwhile, statistics show the combined revenues of the world’s five largest smart home markets are expected to hit $65.1 billion in 2021, indicating a $13.5 billion increase in a year.