The ongoing impact of the COVID-19 pandemic will be felt in the smart home device market, with a significant downturn in global consumer spending, according to market research from Strategy Analytics.
That downturn won’t last too long though. It will be followed by growth in 2021 and beyond. The market research firm says that the market will retrench from $52 billion last year to $44 billion in 2020.
Next year, however, the market will jump to $62 billion and subsequently grow at a 15% compound annual growth rate (CAGR) for five years, reaching $88 billion in 2025.
Buying dynamics as well as the bottom line will change during the balance of the pandemic. In the short-term, online shopping and contact-free delivery will drive purchases of do-it-yourself (DIY) items such as thermostats, cameras, video doorbells and light bulbs.
However, revenue from complex, professionally-installed platforms will be lower due to prohibitions on such in-home work by authorities and reluctance of consumers to have people come into their homes. Return to pre-pandemic levels of this type of installation will not occur until 2023 or 2024, according to Strategy Analytics.
Bill Ablondi, the director of Strategy Analytics’ Smart Home Strategies advisory service, said in a press release that sales of some devices – such as surveillance cameras and video doorbells – are being driven by the pandemic.
The sector likely will do well in the long run, according to Jack Narcotta, the advisory services’ senior industry analyst. “Even with the onset of the pandemic the global smart home device market is very active,” he said in a press release. “Since late 2019, every smart home device category has seen new entrants, and established brands are refreshing their portfolios on a regular basis. Globally, nearly 250 million households already have at least one smart home device, and as average selling prices for most devices decline, many of those are highly likely to buy additional devices.”
ETI has long recognized the role devices now play in the overall communications service provider (CSP) business. This explosion of devices in the home gives CSPs a unique opportunity to meet customer expectations and build a better customer experience. ETI’s Beamfly platform gives CSPs real-time visibility and remote management of CPE, helping to ensure smart home connectivity and the customer experience it enables, remains stable.
Contact us to learn more on how ETI can help you meet the changing demands of the smart home.