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Smart Security, Monitoring and Lighting Sales Remain Healthy

Smart Home Market Insights and Commentary

Smart security, monitoring and lighting devices for the home have witnessed an overall upsurge in growth this year, on track to achieve 120 million shipments worldwide. That is according to Futuresource Consulting’s newly-released report on the segment, which shines a light on the shifting consumer landscape.

“As stay-at-home measures continue to exert their influence on CE categories, the smart home segment has also been handed its fair share of mixed fortunes,” says Julian Issa, Market Analyst at Futuresource Consulting. “Our research shows that detectors and lighting have been the big winners. We expect volume growth rates of 44 percent and 40 percent respectively this year, coaxed to new heights by many consumers seeking added protection against possible fires or smoke while spending more time at home, as well as focusing on devices that aid in automation and comfort.”

“However, demand for security products, such as cameras, locks and doorbells, is falling short of expectations. Many households consider these devices to be less of a necessity, now more time is spent at home. Despite this general mindset and market deceleration, we are still seeing some healthy growth in these areas. There is no doubt that security still remains one of the most compelling use cases for attracting consumers into the smart home ecosystem.”

The Smart Home View across Key Regions

North America continues to lead the way in consumer uptake of smart security and monitoring, followed by China, with most other regions beyond Western Europe still to rise from their infancy. As a result, in untapped markets like the Middle East and Africa, as well as Italy, volume growth rates will exceed 50% in 2020. Eastern Europe, LATAM and APAC also remain untapped.

Smart Subscriptions Knocking on the Door

“The subscription model is also beginning to play out as a market opportunity,” says Issa, “especially for camera and doorbell vendors. The prospect of recurring monthly payments is an enticing proposition for players across the CE landscape, and smart home is no different. What’s more, third-party service providers, including telco, utilities and insurance providers are also growing their market share across the industry, with cameras and other security devices acting as a gateway to growth.”

An Increasingly Smart Future Awaits

Across the entire smart home ecosystem, comprising security and monitoring, lighting, hubs, power and climate devices, Futuresource expects retail value to remain buoyant, with a CAGR of 17% between 2020 and 2024. Futuresource’s companion report to smart security, monitoring and lighting devices will be released later in Q4, focusing on smart hubs, power and climate control.

Join us at the OCF Webinar 
Julian Issa, Lead Analyst of Intelligent Home & Vision at Futuresource Consulting will be discussing “Smart Homes and the New Normal” together with Dr. Milind Gandhe, VP, Systems Business Unit at Tata Elxsi in tomorrow’s free webinar with the OCF. For more information and to register please visit here
For more information on either of Futuresource Consulting’s new smart home reports, please contact Jack Tammaro via jack.tammaro@futuresource-hq.com.

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About the author

Julian Issa

Julian Issa is Futuresource Consultancy’s lead analyst in intelligent home and vision. His work at Futuresource has focused on identifying how global dynamics and new technologies are shaping smart consumer trends, as well as forecasting the trajectory and potential success of smart home devices across different markets.

His latest work in intelligent home has looked to identify opportunities presented by a subscription business model and how the global pandemic has shifted consumer perception of smart devices. Julian was previously an analyst and director at Global Business Reports where he lived and worked across six continents investigating the latest trends and business models impacting the smart tech, biotech, and industrial tech industries.

Julian received an M.Sci from the University of Bristol, UK, where he specialized in geopolitics and environmental policy. An alumni scholar of the Guildhall School of Music & Drama, Julian spent 3 years singing opera semi-professionally.

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