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Worldwide market for smart home devices holds steady amid disruption

Tue 14 Dec 2021

The worldwide market for smart home devices such as smart TVs and speakers has risen 10.3% year over year in the third quarter of 2021, according to new figures from IDC.

There were 221.8 million device shipments during the quarter, despite supply chain disruptions and slow economic recovery due to the pandemic.

According to IDC’s smart home and office devices senior research analyst, Adam Wright, the consumer smart home market has fared better than many other segments within the consumer goods space.

"By and large, consumers have shifted their spending priorities from other areas like vacations and going out to eat to focus on adding more comfort, conveniences, and entertainment at home."

Smart TVs and streaming players accounted for 35.3% of all global shipments, while home monitoring and security devices such as smart locks and cameras also grew 13.5% to account for 20.4% of all shipments. IDC also analysed shipping statistics for the smart speaker, lighting, thermostat and ‘others’ categories.

IDC mobile device trackers research manager Jitesh Ubrani comments, "Not only are consumers buying more devices, but they're also buying up the stack as average selling prices (ASPs) have increased upwards of 3%.”

"The price increases are driven in part by the supply disruptions but new products and improved features across device types have also played a key role. ASPs for notable categories such as TVs increased by almost 7% as OLED displays grew in popularity. Similarly, smart displays, which typically cost more, are also outpacing traditional smart speakers."

IDC says that globally, rising disposable incomes and increased access to broadband are driving growth, helped along by the fact that people are becoming more aware of smart home devices and what they can do.

However, privacy and security issues mean that shoppers are wary of smart home devices, as well as additional and ongoing associated costs, such as subscriptions.

While the United States and China lead the largest countries by shipment volume, Western Europe and Latin America also experienced solid growth.

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