Pandemic Fueled Smart Home Growth, but Security Concerns Persist: IDC
Consumer desire for more sophisticated experiences is expected to drive growth in the smart home segment, but advances will be tempered by concerns over privacy, security, costs and interoperability, reported IDC Monday. Lack of interoperability and the longevity of smaller…
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OEMs are challenges to the market, said analyst Jitesh Ubrani. The upcoming Matter standard should help negate some of the concerns, but “to stay relevant,” OEMs will need to offer “robust services” in addition to products, he said. The smart home concept is “truly mainstream in many parts of the world now," said analyst Adam Smith, citing the connected home’s role in easing social isolation and delivering convenience and entertainment during the COVID-19 pandemic, among other benefits. The market is poised for “solid growth” despite ongoing supply chain and logistics disruptions and “uneven economies across the globe.” The global smart home device market grew 11.7% year on year in 2021, led by video entertainment devices with 310.7 million shipments and 35% market share. Home monitoring and security followed with 184.8 million shipments for 21% share; lighting was third at 85.7 million shipments and 10% share, it said. Smart lighting is forecast to be the fastest growing category of smart devices with a five-year annual compound growth rate of 24%, it said. Overall smart home device growth owes to rising broadband penetration, disposable incomes and consumer awareness, plus cost savings, convenience and energy efficiencies, IDC said.