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Over 10% growth for smart home devices market
18th January, 2022 |
Growing numbers of people are buying smart gadgets for the home, according to the latest quarterly figures.
IDC’s Smart Home Device Tracker for the third quarter of 2021 shows that the worldwide market for smart home devices grew by 10.3% compared to the same period a year earlier, with more than 221.8 million devices shipped.
Despite persistent supply chain disruptions, unemployment and an uneven economic recovery, consumer demand remained high for devices such as smart TVs, smart speakers and smart home security systems.
“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, IDC’s senior research analyst for 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.”
It’s not just about the volume of devices being sold. The data also suggests that buyers are spending more on smart home gadgets, opting for the advanced features available at higher price points.
“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%,” explained 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 represented the biggest volume of shipments in the third quarter, at 35.3%. Home monitoring/security devices like smart cameras and smart locks accounted for 20.4% of shipments, followed by smart speakers (14.4%), smart lighting (9.5%) and smart thermostats (2.5%).
Factors driving sales of smart home devices include rising broadband penetration, growing disposable incomes and increasing consumer awareness of the devices. However, the market’s growth is constrained by ongoing concerns about security and privacy, as well as consumers’ price sensitivity to upfront and ongoing costs of smart devices and services, IDC said.
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