One of the hottest technologies to have penetrated consumers’ daily lives is smart home devices. These include small gadgets like smart speakers, larger appliances like smart refrigerators, and entire security and entertainment systems. 

According to the latest statistics, the global smart home market has been growing in recent years. In 2022, total revenues are expected to reach $126.1 billion, which marks a 20.79% annual increase. 

The growth of the smart home industry in 2022, though substantial, is actually a deceleration from the previous year. In 2021, the industry’s revenues grew 32.54% year-over-year.

The sector is set to continue growing in the coming years—albeit at a slower pace. For instance, analysts have projected an increase of 16.29% in 2023, accounting for revenues of $146.7 billion. 

Despite the expected slowdown in growth rates, the industry is still forecasted to register annual revenue growth of more than 10% over the next few years. By 2026, total revenues are projected to surpass $200 billion.

From 2017 to 2026, revenues from the global smart home market are expected to rise at an average of 20.42% per annum. The biggest growth came in 2018, during which the industry grew by 34.16%, to register revenues of $53.4 billion. In comparison, the slowest increase is expected in 2026, when the market is set to grow by a relatively slower 10.87%.

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Smart home market share by type

Taking a deeper look at the smart home market share, we see that across all the different types, smart appliances generate the most revenues. These include refrigerators, ovens, dishwashers, microwaves, and dryers. 

Revenues from smart appliances in 2022 are forecasted at $48.1 billion—42.76% of the total smart home market share worldwide. In other words, nearly half of every dollar spent on smart home devices worldwide will be on a smart appliance. In fact, smart appliances are expected to be responsible for most of the market’s revenues from 2017 to 2026. 

The smart home technology generating the second-largest amount of revenues is smart control and connectivity systems. At $25.3 billion in expected revenues in 2022, they make up 20.07% of the global market share. 

Here are some other technologies and their respective smart home market shares:

  • Security: $18.9 billion (14.99%)
  • Home entertainment: $13.2 billion (10.48%)
  • Comfort and lighting: $10.6 billion (8.39%)
  • Energy management: $10 billion (7.89%)

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