The global market for smart home is estimated to be worth US$14.7 billion in 2017, with the Americas region representing 48 percent of global sales, based on a study by IHS Markit.
When excluding large ticket items, such as major appliances, the global market size for smart home devices is forecast to be worth US$3.3 billion by the end of 2017, reaching US$9.4 billion in 2021. The Europe, Middle East and Africa (EMEA) region will represent the largest portion of device revenue with a 42 percent global share.
Although the EMEA and Americas regions are expected to represent more than 70 percent of revenues for smart devices over the next five years, Asia is expected to dominate in terms of unit shipments. In 2021, the Asia region is expected to represent about 46 percent of unit shipments. Leading the unit shipments in Asia in 2021 will include light bulbs, air quality sensors and video cameras.
7 Percent of Households Are Smart in 2017
The smart home market has seen significant growth since 2010, when fewer than 0.5 percent of homes in the Americas region had connected devices such as thermostats, lighting, security and entertainment, according to the device database of the IHS Markit smart home intelligence service.
By the end of 2017, nearly 7 percent of households in the region will have a connected home, averaging six devices per home. Globally, in 2025, 10 percent of households will be smart homes.
Top Five Smart Home Players Earn 36 percent of Revenues
Nest, Amazon, Honeywell, Xiaomi and Netgear rounded out the top five for smart home revenue accounting for 36 percent in 2016 when excluding appliances.
The top five players for unit shipments in 2016 accounted for 34 percent of global shipments. The players are Xiaomi, Amazon, Honeywell, Nest and Koninklijke Philips N.V.
Globally, 19 manufacturers had more than 500,000 annual smart home device shipments in 2016. Up to 46 manufacturers had more than US$10 million in revenue, excluding appliances.