Smart Speaker Growth to Slow to ‘Single Digits’ as Market Saturates, Says IDC 

The global market for smart home devices is expected to grow 23.5 percent in 2019, reaching nearly 815 million unit shipments, said IDC Monday. It forecasts shipments exceeding 1.39 billion in 2023, based on a 14.4 percent five-year compound annual growth rate, it said. Competitive price reductions, rising consumer awareness of smart home and the rapid adoption of smart assistants will drive the increases, said IDC. The U.S. will have the “lion's share” of unit shipments each year, rising at a 9.5 percent CAGR to reach more than 560 million devices in 2023, it said. China will be second to the U.S. in global volume but have the world’s highest CAGR at 22.6 percent, it said. "Content and services are going be at the forefront for the smart home market as video entertainment products such as the Fire TV or Chromecast will serve as an on-ramp for consumers entering the world of connected home products," said IDC. Smart TVs will have a nearly 30 percent share of all smart home device shipments in 2023, it said. Falling prices and advanced functionality, such as 8K, higher refresh rates, HDR and integration with smart assistants and streaming platforms, will spur many consumers to upgrade their sets, it said. IDC expects growth in smart speakers and displays to slow to “single digits in the next few years,” it said. The installed base of smart speakers will approach “saturation,” and consumers “will look to other form factors to access smart assistants in the home,” such as thermostats, appliances and TVs, it said.