In line with recent reports of surging growth of integrated Smart TVs around the world, nearly 13.5 billion smart home devices are forecast to be in active use by 2025, up from an estimated 7.4 billion at the end of 2020, according to new data from Juniper Research .
Out of this, the study–Smart Home Devices: Business Models, Market Trends & Forecasts 2020-2025–indicated the smart entertainment device segment will represent the majority of the revenue garnered, at more than $230 billion by the end of 2025. Smart entertainment devices are expected to see a 12% annual unit growth rate over the forecast period.
One of the bigger factors driving the trend, the study says, has been the proliferation of digital voice assistant capabilities, which are being used more frequently to control digital entertainment devices, including smart TVs, smart speakers and video game consoles.
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Juniper said the growing popularity of digital voice assistant functionality is leading to more and more sales of “discrete” device purchases rather than complete packages of smart home products. These smart home packages of products that are often linked through interoperability software platforms and subscription plans, were more commonly sold at the advent of the smart home ecosystem.
Instead, the report forecasts 94% of smart home device purchases sold at the end of the period to come as single device sales, with less than 50 million households globally having a smart home subscription in 2025.
Despite growing to 3.9 billion active devices in use in 2025, the research predicts smart home automation to be used by only 11% of households globally in 2025. These devices, which the study identifies as primarily smart lightbulbs and locks, are not ones that consumers will need to replace on a regular basis.
“The value in this segment is being able to encourage use throughout the home; leading to a high level of value for each adopter,” stated research co-author James Moar. “Outside of entertainment, adoption will come more from vendors making them the default option, rather than the technology encouraging replacement of utilitarian devices.”
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By Greg Tarr
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