Smart Home to Grow 24% by 2025 on Industry Collaboration: Omdia

The smart home market is poised for “exceptional growth” of 24% to $178.5 billion by 2025, said Omdia Tuesday. It estimates 19% of broadband households globally had a smart home device in 2020, up from 10% in 2017. “Only a couple of years ago, the smart home market seemed to have reached peak adoption due to complexity, cost and ‘walled gardens’ that discouraged broader market penetration,” said analyst Blake Kozak. Brands are embracing a “purpose-driven approach based on innovation, collaboration, and focus, which has led to the development of new channels such as homebuilders and apartments,” said Kozak. The Matter standard, delayed until mid-2022, “remains the cornerstone for the new smart-home paradigm that will facilitate the dissemination of devices and services to a new customer base.” Smart apartments and single-family homebuilders will have the biggest impact on the smart home category over the next few years in the U.S., where Omdia’s forecast calls for 64.7 million annual device shipments by 2025, a nearly 60% compound annual growth rate. Of the 1.1 million new single-family homes built in the U.S. last year, about 49,000 had smart home features installed during construction, it said; that's expected to grow to 13 million by 2025.