Recessions and macroeconomic pressures can have a significant impact on device shipments, both in terms of demand from consumers and supply chain challenges for manufacturers. Consumers tend to reduce their spending on non-essential items, including consumer electronics. Global shipments of smart home devices declined for the first time in 2022 as shipments fell 2.6% (year-over-year) to 871.8 million units.
According to the International Data Corporation (IDC), Smart TVs, which represented the largest category, experienced a 4.3% decline in 2022.
Supply chain disruption issues, inflation, and uneven economies can have a significant impact on the market.
Looking ahead, a modest 2.2% growth in smart home device shipments is expected in 2023 as the global economy recovers.
This growth is expected to continue through 2027 with device volumes reaching 1.23 billion in 2027.
“Smart TVs will likely face another year of decline in 2023 due to macroeconomic pressures and long replacement cycles,” said Jitesh Ubrani, research manager for IDC’s Mobility and Consumer Device Trackers.
With the recent entrance of value-oriented brands such as Amazon and Roku, IDC expects further declines in average selling prices for TVs while also bringing premium features down to more affordable price points.
Apart from TVs, most other smart home categories such as security cameras, connected doorbells and door locks along with smart displays are expected to grow thanks to a growing installed base, a recovering economy, and the rise of emerging markets.
“Ongoing disruptions from supply chain issues, inflation, and uneven economies across the globe have impacted the market’s growth in 2022 and are expected to continue to put downward pressure on the market for the foreseeable future,” said Adam Wright, research manager, Smart Home and Office Devices at IDC.
Also Read: TikTok CEO says, will never share US user data with China
