Global shipments of smart home devices declined for the first time in 2022 as shipments fell 2.6% year over year to 871.8 million units, according research firm IDC.
Smart TVs, which represented the largest category, experienced a 4.3% decline in 2022 due to tough year-over-year comparisons as the market for TVs and other products was extremely strong in 2021 due to Covid-related purchasing.
Looking ahead, IDC forecasts a modest 2.2% growth in smart home device shipments in 2023 as the global economy recovers. This growth is expected to continue through 2027 with device volumes reaching 1.23 billion in 2027.
“Smart TVs will likely face another year of decline in 2023 due to macroeconomic pressures and long replacement cycles,” said Jitesh Ubrani, research manager at IDC.
“With the recent entrance of value-oriented brands such as Amazon and Roku, IDC expects further declines in average selling prices for TVs while also bringing premium features down to more affordable price points.”
Apart from TVs, most other smart home categories such as security cameras, connected doorbells and door locks along with smart displays are expected to grow thanks to a growing installed base, a recovering economy, and the rise of emerging markets.
“The worldwide smart home market is in a period of volatility. Ongoing disruptions from supply chain issues, inflation, and uneven economies across the globe have impacted the market’s growth in 2022 and are expected to continue to put downward pressure on the market for the foreseeable future,” said Adam Wright, research manager for smart home and office devices at IDC.
“But despite these constraints, the notion of the smart home is now ‘mainstream’ in many parts of the world and consumers are increasingly looking to these devices to elevate their digital experiences at home and beyond.”