IDC says worsening macroeconomic conditions have led to a reduction in the outlook for global smart home device shipments.
IDC estimates that worldwide shipments of smart home devices are now expected to decline 2.6% in 2022 to 874 million units with smart speakers and video entertainment devices such as TV and streaming devices facing the brunt of the decline.
"Moreover, we're witnessing downward pressure on demand in 2022 as inflation continues to squeeze consumers' wallets. Looking ahead, we expect volatility will continue to inhibit the market's growth in 2023 and beyond."Adam Wright
Though the global market is forecast to return to growth in 2023, it will remain relatively low at 4.6% with most of the growth coming from emerging markets as well as China.
"Though smart speakers arguably helped launch the smart home category, the shine of these products has largely worn off for consumers in developed markets such as the United States and China with shipments expected to decline in the long run," said Jitesh Ubrani, research manager for IDC's Mobility and Consumer Device Trackers.
"Smart speakers will now rely on emerging markets and places like Europe where language and lack of services have been a barrier to adoption in the past."Jitesh Obrani
Among the other form factors, home monitoring/security products such as cameras, doorbells, or door locks, as well as smart lighting and video entertainment products will account for the largest share and experience the highest growth rates within the smart home market.