Saturday, May 25, 2024

Global smart home devices market grew 10.3% in Q3 of 2021: IDC

The worldwide market for smart home devices grew 10.3% year over year in the third quarter of 2021 (3Q21) with more than 221.8 million device shipments, according to research firm IDC.

Despite persistent supply chain disruptions, unemployment, and an uneven economic recovery, consumer demand remained high for smart home devices like smart TVs, smart speakers, and other devices.

“The smart home market continues to fare better than other consumer goods during the ongoing Covid-19 pandemic, although to varying degrees in different regions,” said Adam Wright, senior research analyst, Smart Home and Office Devices.

“By and large, consumers have shifted their spending priorities from other areas like vacations and going out to eat to focus on adding more comfort, conveniences, and entertainment at home.”

The United States held the largest share of unit shipments in the third quarter and grew 9.5% quarter-over-quarter. China was the second-largest country by shipment volume with 24.7% of shipments but had negative growth of 5.2% compared to 2Q21. Western Europe and Latin America posted solid sequential growth of 17.9% and 15.0%, respectively.

“Not only are consumers buying more devices, but they’re also buying up the stack as average selling prices (ASPs) have increased upwards of 3%,” said Jitesh Ubrani, research manager for IDC’s Mobile Device Trackers.

“The price increases are driven in part by the supply disruptions but new products and improved features across device types have also played a key role. ASPs for notable categories such as TVs increased by almost 7% as OLED displays grew in popularity. Similarly, smart displays, which typically cost more, are also outpacing traditional smart speakers.”

Video entertainment devices like smart TVs and streaming players maintained the largest volume of shipments in the third quarter, accounting for 35.3% of all shipments. Home monitoring/security devices like smart cameras and smart locks accounted for 20.4% of shipments and grew 13.5%.

Notwithstanding the ongoing health crisis, the most salient factors driving the market’s growth at a global level included rising broadband penetration, rising disposable incomes, and a rapidly rising consumer awareness of smart home devices – driven in part by extensive marketing and consumer education campaigns by leading vendors in the market.

However, IDC said the market’s growth continues to be constrained by ongoing concerns about security and privacy, as well as consumers’ price sensitivity to upfront and ongoing costs of devices and services.

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