Worldwide Shipments of Smart Home Devices Continue to Decline in 2023, Slump Expected to Last into 2024, According to IDC

NEEDHAM, Mass.–(BUSINESS WIRE)–#Entertainment–Global shipments of smart home devices continued to decline in the first quarter of 2023 as shipments fell 5.6% year over year to 186.0 million units, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Smart speakers and networked video entertainment devices faced the steepest declines in the first quarter, down 15.4% and 7.8% respectively compared to the prior year. Looking ahead, IDC expects the market to decline by 1.8% overall in 2023 as weak consumer demand and economic volatility continue to put significant downward pressure on the market. Although much uncertainty exists, IDC expects the market will return to growth in 2024 and continue through 2027 with device volumes reaching 1.1 billion shipments in 2027.

“While there have been pockets of growth, the market has largely stalled due to lack of meaningful upgrades between one generation of devices and the next,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers. “Even the launch of the Matter standard has not been enough to spur demand despite offering some ease of use.”

Apart from smart speakers and networked video entertainment devices, many other smart home categories such as lighting, thermostats, and home monitoring and security devices are expected to witness high growth over the next five years in part due to rising consumer awareness of smart home devices in many parts of the world and the rise of emerging markets.

“The worldwide smart home market is witnessing uneven growth as some regions fare better than others,” said Adam Wright, research manager, Smart Home and Office Devices at IDC. “In more mature markets like the United States, high installed bases of devices coupled with issues of underutilization, ongoing disruptions form supply chains, logistics issues, high inflation, and record high credit card debt have impacted the market’s growth in 2022 and the first part of 2023 and are expected to continue to put downward pressure on the market for the foreseeable future. But other regions that are earlier in their adoption curve like Latin America and parts of Asia/Pacific have much opportunity for growth.”

Worldwide Smart Home Device Forecast by Shipment Volume, Market Share, and 2023-2027 Growth Rate (shipments in millions)

Device Category

2023 Shipments*

2023 Market Share*

2027 Shipments*

2027 Market Share*

2023-2027 CAGR*

Video Entertainment

278.7

32.5%

306.4

26.5%

2.4%

Home Monitoring/Security

191.8

22.4%

252.2

23.5%

7.1%

Lighting

101.9

11.9%

169.7

20.5%

13.6%

Smart Speaker

106.9

12.5%

122.5

11.0%

3.5%

Thermostat

24.9

2.9%

29.7

2.6%

4.5%

Others

152.9

17.8%

211.0

19.4%

7.7%

Total

857.1

100.0%

1,091.5

100.0%

6.2%

Source: IDC Worldwide Quarterly Smart Home Device Tracker, June 23, 2023

* Table Note: All values are forecast estimates.

IDC’s Worldwide Quarterly Smart Home Device Tracker provides insightful analysis, quarterly market share data, and a five-year forecast for the smart home device market.

About IDC Trackers 

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly Excel deliverables and on-line query tools.

For more information about IDC’s Worldwide Smart Home Device Tracker, please contact Jackie Kliem at 508-988-7984 and jkliem@idc.com.

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About IDC 

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world’s leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.

Contacts

Adam Wright

awright@idc.com
508-935-4316

Jitesh Ubrani

jubrani@idc.com
416-873-0315

Michael Shirer

press@idc.com
508-935-4200