• January 17, 2018

• News

•  Industry News

• Share

One of the big stories of the last few years has been soaring consumer adoption of smart home devices. From 2013 to 2016, revenue in this category jumped from approximately $400 million to $1.2 billion. Even more noteworthy, revenue is accelerating a breakneck pace, growing 56.7% between 2015 and 2016. These figures don’t even include Amazon.

Branded and Google Home products, two big players in the space.

Security & Monitoring is by far the largest smart home segment, accounting for over $250 million in sales in Q4 2016. To put this in perspective, the number two segment is Power & Sensors with approximately $60 million in sales during the same quarter. Smart Lighting and Smart Controls tie for the third spot at $50 million. Again, it’s also important to note that Amazon Branded and Google Home products are not included in these figures.

When it comes to awareness and interest, the numbers have been stagnant and even showing a slight decrease when comparing October 2015 with October 2016. However, ownership, when studying these two points in time, has increased from 9% to 12%. The one demographic that registered growing awareness and interest is Millennials ages 18-34. Evidence of Millennials adoption in smart home devices is seen in the Amazon Echo, which saw ownership grow from 8% to 10% from April 16 to October 16, more than any other demographic. The age group is expected to continue to drive growth in the smart home category.

“While we have seen substantial growth over the last 5 years, the real opportunity for growth will occur in the next 5,” Steve Tomey, Solutions Development Leader for Tessco, explained. “Products such as Amazon Echo and Google Home, which have become extremely popular and will continue to grow in adoption, will drive consumer awareness and interest in connected home products. As consumers explore the many different ways these AI platforms can interact with their home, they will be compelled to purchase compatible connected home products to add this functionality.”