Smart Home Devices to Exceed 100 Million Shipments in 2018

The Consumer Electronics (CE) Team at Futuresource Consulting recently published the latest findings from its World Wide Smart Home industry report, which forecasts nearly 110 million smart home devices will be shipped worldwide in 2018. This equates to a retail value of almost $17 billion and demonstrates strong growth in both volume and value. Security and monitoring, followed by climate control and smart speakers are the dominating categories.

Artificial intelligence (AI) and fast connectivity – critical ingredients for the next era of category leaders such as smartphones, smart home devices and smart speakers – will drive the U.S. consumer technology industry to a record-breaking $398 billion in retail revenues ($301 billion wholesale) in 2019 and 3.9 percent year-over-year (YOY) growth, which includes streaming services revenue, according to the Consumer Technology Association (CTA). A record growth anticipating the introduction of 5G smartphones and 8K TVs in 2019.

Artificial intelligence (AI), voice-recognition technology and fast connectivity – critical ingredients for smart speakers, smart home technologies and smartphones – will help spur overall U.S. consumer technology industry revenue to $377 billion in retail revenues in 2018, a six percent increase, according to the Consumer Technology Association (CTA). The mid-year update of CTA’s flagship report, U.S. Consumer Technology Sales and Forecasts, also shows whole home Wi-Fi solutions and wireless earbuds will each cross the $1 billion wholesale revenue milestone for the first time this year.

The global smart home market ended on an upbeat note in 2017 reaching $84 billion, up 16% from $72 billion in 2016 according to a report just released by Strategy Analytics. According to the report, “2018 Global Smart Home Market Forecast”, worldwide consumer spending on smart home devices, systems and services will total nearly $96 billion in 2018 and grow at 10% CAGR over the forecast period (2018 to 2023) to $155 billion. Adoption of smart speakers from Amazon and Google is boosting the market.

2.2 billion digital assistant-enabled devices will ship in 2017, growing to 3.6 billion in 2022, says SAR Insight & Consulting in its latest research, "Digital Assistant Platforms; Use Cases, Technologies, Market Sectors & Competitive Analysis." According to the market research firm, home audio speakers will continue to lead the way, as voice recognition improves, with significant growth opportunities in smartphones, headphones, appliances, automotive, and the enterprise.

According to Global Market Insights, the global market for Smart Speakers represented over USD 400 million in 2016 and is predicted to grow at an estimated CAGR of over 50% from 2017 to 2024. The market research company says Internet of things (IoT) is expected to be a major factor driving growth. "The rising penetration of the Internet has extended to everyday applications and has increased the consumer demand for smart devices that offer a wide range of functions," they state.