Global Smart Home Market Expected to Surpass $100 Billion This Year

[Asia Economy Reporter Joesulgina] The global smart home solutions market is expected to show a full-fledged recovery this year, surpassing $100 billion for the first time in history.

According to the '2021 Global Smart Home Outlook' report by global market research firm Strategy Analytics (SA) on the 7th (local time), consumer spending on smart home solutions this year is estimated to reach $123 billion (approximately 140 trillion KRW), a 44% increase from the previous year.

Consumer spending on smart home solutions steadily increased from $51 billion in 2015 to $74 billion in 2017 and $95 billion in 2019, but fell back to $85 billion last year due to the impact of the COVID-19 pandemic.

SA analyzed that this was due to 30 million households that had postponed smart home installations because of COVID-19 now making expenditures this year. The number of households with smart home system installations is expected to increase by 8.7% from last year to 276 million households, accounting for 15% of the total.

By region, North America accounted for 40% of total consumer spending, making it the largest market. This was followed by Asia-Pacific (29%) and Western Europe (18%). SA stated, "In the United States, security systems are leading the growth of the smart home market, while in Europe, smart lighting and electronic devices are driving growth," adding, "The Asia-Pacific region has many households with smart home installations, but the spending per household is half that of the United States." The Asia-Pacific region is expected to become the largest smart home market in the late 2020s.

The smart home market is expected to grow to $173 billion by 2025. The number of households with smart home device installations is also expected to expand from 15% to around 20% of the total, reaching 420 million households.

Bill Ablondi, head of SA's Smart Home Strategy Advisory Services, said, "The smart home market is recovering from the economic and social distancing impacts caused by the COVID-19 pandemic," adding, "Consumers spending more time at home have come to recognize the value of smart home solutions."

Jack Narkota, senior analyst of SA's Smart Home Strategy Advisory Services, also mentioned, "As the prices of smart home products continue to decline, consumers can easily use various devices without significant burden," noting, "Consumer spending is increasing."