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Smart Security, Monitoring and Lighting Sales Remain Healthy, as Consumers Re-Evaluate Home Comforts
Smart Home Market Insights and Commentary
20 Oct 2020 - 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.
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Here at Futuresource Consulting we deliver specialist research and consulting services, providing market forecasts and intelligence reports. Since the 1980s we have supported a range of industry sectors, which has grown to include: CE, Broadcast, Entertainment Content, EdTech and many more.