Smart entertainment devices will account for the bulk of revenues attributable to smart home devices, estimated to value over US$230 billion in 2025, according to a new report by Juniper Research. It also expects smart home entertainment devices to almost double, with overall sector growth of 80%.
With voice assistant capabilities becoming a common way to control digital entertainment devices – which range from smart speakers to TVs and games consoles, Juniper Research predicts that the smart home will become increasingly dependent on discrete purchases, rather than holistic smart home packages that were common in the early days of the market. By 2025, 94% of devices in use will be from individual purchases, with less than 50 million households globally having a smart home subscription.
Indeed, in the report entitled “The Smart Home Floorplan: 3 Key Device Strategies”, the market research firm estimates that there will be almost 13.5 billion smart home devices in active use in five years’ time, compared to an expected 7.4 billion at year end 2020.
“The value in this segment is being able to encourage use throughout the home; leading to a high level of value for each adopter,” said 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.”
Meanwhile, despite growing to 3.9 billion active devices in use in 2025, the report notes that smart home automation will only be used by 11% of households globally in 2025. These devices, primarily lightbulbs and locks, are not ones that consumers will need to replace on a regular basis.