BOSTON–(BUSINESS WIRE)–Global consumer spending on smart home solutions is expected to reach $123 billion in 2021 after declining in 2020 due to the economic impact of COVID-19, according to new research published in Strategy Analytics’ “Global smart home forecast 2021”.
Strategy Analytics predicts that global consumer spending in 2021 on smart home products and services will cross the $100 billion mark after faltering in 2020 due to the pandemic. Consumers who have deferred installations fulfill their planned purchases as an additional 30 million households acquire smart systems in 2021. The market will continue to grow to reach $173 billion in 2025 when nearly 20% of all households globally will have at least one smart home product in use, growing by 15% by the end of 2021.
North America is the largest market in 2021, accounting for 40% of all consumer spending, followed by Asia-Pacific with 29% of spending and Western Europe with 18%. Security systems are driving growth in the US and Western Europe, surveillance cameras, smart light bulbs and electrical appliances are driving smart home adoption. There are more smart homes in Asia-Pacific, but spending per home is half of what it is in the United States. As adoption increases among the region’s one billion homes, Asia-Pacific will become the largest smart home market by the end of 2020s.
Bill Ablondi, Director of Strategy Analytics’ Smart Home Strategies Advisory Service, said: “The smart home market is recovering from the economic and social distancing impacts caused by the pandemic and after spending more time at home, consumers are looking for ways to improve their homes and find that smart home solutions deliver improvements they value. »
Jack Narcotta, Senior Industry Analyst at Strategy Analytics’ Smart Home Strategies advisory service, added: “Prices of smart home products have continued to drop dramatically, making it easier for consumers to try various devices without breaking their bank account. This drives adoption and increases spending as people buy two or three security cameras instead of one or add half a dozen smart bulbs to their homes. »
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Source: Strategy Analytics, Inc.
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