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Smart-Home Devices Will Overtake Smartphone Sales

Demand for smart-home devices will eclipse smartphones within five years, according to new data from Strategy Analytics, driven by lower pricing, improved user experiences, rapid technology developments, and compelling user applications and services.



The market research firm said consumers purchased 663 million smart-home devices worldwide last year, with sales reaching $84 billion. This is up 16 percent from $72 billion in 2016. Sales are expected to increase to $155 billion in 2023, with 1.94 billion units sold.


Smartphone sales, meanwhile, are expected to reach 1.86 billion units worldwide in 2023.


North America will account for 41 percent of total spending ($40 billion), followed by the Asia-Pacific region at $26 billion and Western Europe at $17 billion.


The fastest growing category this year will be smart speakers, Strategy Analytics said, which pegged it at an anticipated growth rate of 109 percent to reach 69 million units sold. Other rapidly ascending segments include smart light bulbs, connected smoke detectors, smart door locks, gateways and hubs, and security cameras.


Fast-Growing Smart-Home Categories
Global Annual Sales of Smart Home Devices (Units, in millions)


  2017 2018 Rata de crestere
Smart Speakers   33   69   109%
Smart Light Bulbs     35   45   29%
Smart Door Locks   9   11   27%
Smarthome Gateways & Hubs   20   25   25%


“The emergence of the smart home as a popular concept in recent years has led to a wealth of new device opportunities for vendors and technology developers,” said Bill Ablondi, Strategy Analytics’s director of smart-home strategies. “The smart-home device landscape is still in its formative stage and multiple players are fighting to establish a presence.”


He added “The scale of future demand suggests that there are huge opportunities for vendors that are able to take the lead in improving how people manage and organize their homes.”


The firm advised retailers to identify barriers to consumer adoption, as well as which bundles of products and services they expect will resonate with consumers.