Smart home devices are gradually entering people's lives, and the CAGR will reach 14.4% in the next five years

The global smart home device market is set to explode in the next few years.

According to a forecast report released by IT research company IDC Japan, global shipments of smart home devices (including smart speakers, home security monitoring, etc.) are expected to reach 815 million units in 2019, a year-on-year increase of 23.5%. The market is expected to continue to grow in the next few years. It is estimated that global shipments will expand to 1.396 billion units in 2023, and the average annual compound growth rate (CAGR) in the next five years (2019-2023) will reach 14.4%.

Looking at individual devices, global smart speaker shipments are estimated to reach 134.8 million units in 2019, accounting for 16.5% of total smart home device shipments. It is estimated that shipments will expand to 200 million units in 2023, with a CAGR of 10.4% over the next five years.

In 2019, the shipment volume of home monitoring/security is estimated to be 156.6 million units, accounting for 19.2% of the total smart home devices. It is estimated that it will grow to 307.9 million units in 2023, with a CAGR of 18.4%.

Video Entertainment shipments are estimated to reach 339.8 million units in 2019, accounting for 41.7% of all smart home devices. It is expected to grow to 417.7 million units in 2023, with a CAGR of 5.3%.

The shipment volume of other types of equipment (including thermostat, smart lighting and other products) is estimated to be 183.6 million units in 2019, and is expected to grow to 470.5 million units in 2023, with a CAGR of 26.5%.

IDC points out that the United States will be the world's largest smart home device market in the next five years, with shipments expected to reach more than 560 million units in 2023 and a CAGR of 9.5% from 2019 to 2023. The Chinese market is second only to the United States in size, but will be the fastest growing market, with a CAGR estimated to reach 22.6%. Following China in CAGR are Canada (CAGR estimated to be 19.9%) and Western Europe (14.7%).