Video Entertainment Segment to Account for 38% of Global Smart Home Devices Market Share in 2019
In 2019, video entertainment segment is estimated to dominate the global smart home devices unit sales. Growth in the video entertainment devices is attributed to increasing demand for smart TV as well as digital media adapters such as Apple TV, Amazon Fire TV, Roku’s devices etc. In 2018, over 300 million units of video entertainment were shipped worldwide. Roku dominated the North America streaming player market, however, Amazon Fire TV has gained significant market share worldwide. Industry leaders are focusing on upgrading their product portfolio with smart SKU as well as are highly priced focused.
By 2028, home security will become the largest segment followed by video entertainment and smart speakers. It is highly probable that devices will have common integrated platform by 2028, which will further boost the sales of smart home devices worldwide.
Companies are Focusing on Inorganic Growth Strategy in Order to Enhance Business Presence and Leverage the Existing Technologies
Competition in the market has heightened since 2018. Various companies are coming up with smart devices in order to gain maximum clients. Major companies are focusing on acquiring high potential startups/companies to leverage the developed technologies or strengthen the business presence in the said segment. For instance, in February 2019, Amazon acquired Eero, a US-based mesh Wi-Fi system provider, in order to complement its product offerings in the smart home devices market. Several such developments were seen in the market. The trend is likely to be seen in another ten years.
Product Development Will Continue to be the Key Focus of the Industry Players
Industry players will continue to focus on developing cost effective smart home devices with value added features and better integration with rest of the connected devices. Recently, in August 2019, In August 2019, Sony Corporation announced the launch of its ‘SRS-XB402M’, a new wireless speaker with Alexa support, in order to tap into the smart home devices market.
Internet of Things (IOT) Policy Frameworks to Boost the Adoption of Smart Home Devices Worldwide
Government of various countries has played a decisive role in boosting IoT infrastructure. IoT has become a core aspect to the urbanization and improving the quality of lifestyle. Strategic IoT policy support from the government has accelerated the adoption rate of connected device. For instance, Government of South Korea announced to invest US$ 5 billion in internet of things till 2020. In 2015, United States announced a grant of US$ 160 million for the creation of software and IoT applications towards smart cities project. Another country, United Arab Emirates started smart cities initiatives beginning 2013. Large number of such initiatives will propel the overall ecosystem of connected device industry including smart home devices market.