How Quickly Will the Smart-Home Market Grow? - eMarketer

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How Quickly Will the Smart-Home Market Grow?

Smart-home service revenues to double between 2014 and 2019

December 12, 2014

2015 is set to be the year of the internet of things, with connected homes one of the hottest topics. According to data released in October 2014 by the Consumer Electronics Association (CEA) and Parks Associates, shipments of both smart-home devices and controllers will rise by 20% or more annually in the coming years.

US Smart-Home Device* and Controller** Shipments, 2014-2017 (millions)

Coming in at 20.7 million this year, US smart-home device shipments were expected to rise 20.3% next year to reach 24.9 million. And by 2017, CEA and Parks estimated that total shipments of devices such as smart thermostats and smart door locks would near 36 million.

Meanwhile, smart-home controller shipments were forecast to increase almost 36% between 2014 and 2015 to near 2 million. Following growth of 31.6% in 2016 and 24.0% in 2017, CEA and Parks projected that total shipments of smart-home controllers would top 3 million in the next three years.

US Smart-Home Service Revenues, 2014 & 2019 (billions)

Smart-home service revenues—which include professionally installed control and entertainment systems, interactive security, self-monitoring and control, and other services—should double between 2014 and 2019, according to August 2014 projections from Strategy Analytics. The research firm estimated that US smart-home revenues of $18 billion this year would double by 2019 to hit $39 billion.

Q2 2014 research by Nielsen found that 40% of US internet users were interested in owning a connected home. Home security (71%) and home automation (70%) were the connected-home technologies of most interest.

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