By now everyone is fully aware of the impact smart home technology has had on the residential security industry but, according to a new report from IHS Markit, the adoption of connected devices is only expected grow exponentially in the years ahead.
In 2010, for example, less than half a percent of homes in the Americas region had connected devices, such as thermostats, lighting, security and entertainment. However, by the end of 2017, nearly seven percent of households in the region will have a connected home and globally, in 2025, the market research firm predicts that 10 percent of all households will be smart homes.
Some of the other findings from the report compiled by Blake Kozak, principal analyst for IHS Technology, include:
1). Smart Home Device Revenue Will Exceed $14 billion in 2017
- The global market for smart home was worth $14.7 billion in 2017, with the Americas region representing 48 percent of global revenues.
- In 2021, the Europe, Middle East and Africa (EMEA) region will represent the largest portion of device revenue with a 42 percent global share.
- When excluding large ticket items, such as major appliances, the global market size for smart home devices is forecast to be worth $3.3 billion by the end of 2017, reaching $9.4 billion in 2021.
- Although the EMEA and Americas regions are expected to represent more than 70 percent of revenues for smart devices over the next five years, Asia is expected to dominate in terms of unit shipments. In 2021, the Asia region is expected to represent about 46 percent of unit shipments. Leading the unit shipments in Asia in 2021 will include light bulbs, air quality sensors and video cameras.
2). Top Five Players Account for 36 Percent of Revenue
- Nest, Amazon, Honeywell, Xiaomi and Netgear rounded out the top five for smart home revenue accounting for 36 percent in 2016 when excluding appliances.
- The top five players for unit shipments in 2016 accounted for 34 percent of global unit shipments and included Xiaomi, Amazon, Honeywell, Nest and Koninklijke Philips N.V.
- Globally, 19 manufacturers had more than 500 thousand annual smart home device shipments in 2016. 46 manufacturers had more than $10 million in revenue in 2016, when excluding appliances.
Some of the top smart products to watch, according to Kozak, include radiator valves, air quality sensors, smart speakers and appliances. For more information about the report or IHS Markit’s Smart Home Intelligence Service, click here.
