Q1’23 Sees 5.6% Drop in Smart Home Devices Shipments Worldwide, Slump Expected to Last into 2024

Global smart home device shipments fell 5.6% year-on-year in Q1’23 to 186 million units, according to IDC. Notably, smart speakers and networked video entertainment devices suffered the greatest drops, decreasing by 15.4% and 7.8% respectively.

Device Category2023 Shipments2023 Market Share2027 Shipments2027 Market Share2023-2027 CAGR
Video Entertainment278.732.5%306.426.5%2.4%
Home Monitoring/Security191.822.4%252.223.5%7.1%
Smart Speaker106.912.5%122.511.0%3.5%
Worldwide smart home device forecast by shipment volume, market share, and 2023-2027 growth rate (shipments in millions). (Source: IDC)

There is likely to be an overall market decline of 1.8% in 2023 due to weak consumer demand and economic volatility. Despite this, a market revival starting in 2024 is expected, with device volumes reaching 1.1 billion shipments by 2027. Some categories, including lighting, thermostats, and home monitoring devices, are expected to see significant growth over the next five years. The rise of emerging markets and growing consumer awareness globally are contributing to this trend.

Mature markets like the United States have seen slowed growth due to factors such as high device installation bases, supply chain disruptions, and financial issues. However, regions early in their adoption curve, such as Latin America and parts of Asia/Pacific, show promising growth potential.