Smart Home Market Expected to Take $20B Hit, Despite Category's Diversity
Coronavirus disruptions are expected to cause a $20 billion revenue hit for the global smart home category, reported Omdia Friday. The market is pegged at $101.1 billion for 2020 compared with a previous projection of $120.6 billion, said the research…
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firm. Smart home device shipments are estimated at 603.5 million units vs. 693.5 million previously forecast. The smart home market “tends to be more resilient” during economic challenges vs. less diversified categories, said analyst Blake Kozak, but it, too, will undergo a correction this year. Asia will have the biggest slowdown, equating to $7.8 billion and 66.2 million fewer shipments than originally forecast, it said. Production should ramp up as the Asia region recovers from the pandemic, but depleted inventories could add strain to potentially lower demand. In the U.S., Omdia cut the smart home revenue outlook 10.6%, though device growth is forecast to remain stronger than in other countries. But it cautioned U.S. growth projections could be reduced further if stock markets don’t rebound or if the virus spreads, affecting U.S. supply chains. In areas of the U.S. with high rates of contagion, the number of professional smart home installations could be reduced, it said, and the capability to either ship and deliver products or to install devices could be "drastically diminished."