One of the hottest technologies to have penetrated consumers’ daily lives is smart home devices. These include small gadgets like smart speakers, larger appliances like smart refrigerators, and entire security and entertainment systems. 

According to the latest statistics, the global smart home market has been growing in recent years. In 2023, total revenues are expected to reach $139.3 billion, which marks an 18.5% annual increase. 

The growth of the smart home industry in 2023 is nearly double the rate of the previous year. In 2022, the industry’s revenues grew 9.6% year-over-year.

The sector is set to continue growing in the coming years—albeit at a slower pace compared to 2023. Even then, the industry is forecasted to register annual revenue growths of more than 10% over the next few years. For instance, analysts have projected an increase of 15.1% in 2024, to hit revenues of $160.3 billion, before growing another 13.2% in 2025 to $181.4 billion. In 2026, total revenues are projected to surpass $200 billion for the very first time, hitting $202.5 billion. The estimated revenues of the global smart home market in 2027 are $222.9 billion, a 10.1% annual increase.

Over this period, revenues from the global smart home market are expected to rise at an average of 18.5% per annum. The biggest growth came in 2021, during which the industry grew by 36.3%. In comparison, the slowest increase was just a year later. 

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Smart home market share by type

Taking a deeper look at the smart home market share, we see that across all the different types, smart appliances generate the most revenues. These include refrigerators, ovens, dishwashers, microwaves, and dryers. 

Revenues from smart appliances in 2023 are forecasted at nearly $54 billion—38.7% of the total smart home market share worldwide. In other words, more than one-third of every dollar spent on smart home devices worldwide will be on a smart appliance. In fact, smart appliances are expected to be responsible for most of the market’s revenues from 2017 to 2027. 

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The smart home technology generating the second-largest amount of revenues is smart control and connectivity systems. At $28.2 billion in expected revenues in 2023, they make up 20.2% of the global market share. 

Here are some other technologies and their respective smart home market shares:

  • Security: $20.9 billion (15%)
  • Home entertainment: $13.7 billion (9.8%)
  • Comfort and lighting: $11.7 billion (8.4%)
  • Energy management: $10.9 billion (7.8%)

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