Smart Home Industry Expected To See Continued Double-Digit Growth Through 2022

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In short: IDC has put out a new report today, where it is expecting to see double-digit growth across all smart home product segments through 2022. In 2018 alone, it is expecting to see around a 31-percent year-over-year growth, coming to 643.9 million devices being shipped. However, the entire smart home market is expected to be around 1.3 billion devices by 2022. That would be a five-year compound annual growth rate of 20.8-percent, and the fastest growing category with a CAGR of 39.1-percent, which will be smart speakers like those sold by Amazon and Google.

Background: The smart home industry is still a very new industry right now, with a ton of room to grow, so seeing double-digit growth for the next five years is not surprising at all. And the fact that smart speakers are going to lead the charge is also not a surprise. Smart speakers have basically been the catalyst to get users into the smart home space. That is because these have personal assistants inside, so you can ask them questions, they can also play music, in addition to controlling your smart home. Not to mention the fact that these are pretty cheap, and are given away with a lot of products – especially the Amazon Echo Dot and Google Home Mini.

Impact: This means that the smart home market is going to be a pretty big deal for the next five years or so, and that means that you are going to see plenty more smart home products hitting the market. Now while many are not to fond of these and Internet of Things products, they are the future. IDC is also expecting the video entertainment category to be a big part of this growth through 2022, with around 457.5 million devices shipped. Of course leading the way there is Google and Amazon once again with the Chromecast and Fire TV, to no one's surprise.

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