According to the latest research report of strategy analytics, due to the impact of the new coronavirus pandemic, many governments in many countries have implemented blockade policies, so that many consumers have to work at home or reduce going out, so that they can better understand the environment around their houses. This will improve the possibility of using smart home devices for every family in the future.
Strategy analytics predicts that the global consumer spending on smart home related devices will decline due to the impact of the coronavirus epidemic in 2020, which is expected to drop from $52 billion in 2019 to $44 billion in 2020. However, starter analytics believes that the market will rebound in 2021 and reach $62 billion in consumer spending by 2021.
Strategy analytics further predicts that the global smart home device market will continue to grow at a compound annual growth rate of 15%, reaching US $88 billion by 2025.
Cole market research, another research institution, believes that the market size of smart home appliances will undergo a great leap forward in the compound annual growth rate of 32% from 2019 to 2025. The main reason lies in the increase of digital demand, the improvement of consumers’ awareness of smart home center, the improvement of living standards, the enhancement of consumers’ purchasing power and the continuous emergence of integrated products, which stimulate the demand of consumers for smart home appliances.
Research and markets also revised down the scale of global smart home market (including software and services) to $78.3 billion in 2020, but it is still expected to reach $135.3 billion by 2025, with an annual compound growth rate of 11.6%.
In order to understand the adoption of smart home in the context of coronavirus epidemic, strategy analytics targeted ring, nest and Philips Through the observation of smart home device companies such as hue and ADT, Comcast and vivint, which are specialized in family safety protection, it is found that consumers’ adoption rate of smart home solutions with high complexity and requiring professional installation will gradually decrease with the outbreak of coronavirus. But with more and more families shopping online and delivering goods through contactless means, the purchase of thermostats, cameras, video doorbells and smart light bulbs is increasing.
In short, manufacturers must develop smart home devices or smart appliances that can be easily set up and installed. As for the installation of high-quality smart home system, it is bound to be delayed until 2023 or 2024 to reach the growth level of previous years.
Overall, nearly 250 million households worldwide already own at least one smart home device, and with the average retail price of most devices falling, many are likely to continue to buy more devices in the coming years. Even though today’s physical retail stores are limited by coronavirus, online shopping will make up for this deficiency. Therefore, both smart home devices and smart home appliances will present a bright future in the future.
Editor in charge: Tzh