The market for smart devices, including smart speakers, digital media adapters, lighting, thermostats and many others, is expected to cross half a billion units for the first time in 2018. Analyst firm IDC expects demand for such devices to grow 26.8 per cent over the previous year to 549.5 million units (to be shipped) in 2018. Smart speakers such as the Amazon Echo and Google Home, and video entertainment devices such as the Amazon Fire Stick and Google Chromecast will make up 71 per cent of this market, according to the report. Overall, the market for smart devices will remain hot for years to come, growing at a compound annual growth rate (CAGR) of 12 per cent from 2018-2022.
High growth categories
While majority of the smart devices sold in 2018 will either be smart speakers or some sort of smart video entertainment devices, other categories are expected to grow faster at CAGR of 25.3 per cent versus CAGR 12 per cent for the overall market.