Amid the continued fallout of the coronavirus (COVID-19) crisis, the global smart homes market is expected to fall nearly USD 20 billion short of revenue expectations in 2020, according to Omdia. The global smart homes market will total USD 101.1 billion in 2020, down from the previous forecast of USD 120.6 billion. Smart home device shipments are now projected to reach 603.5 million units in 2020, down from the earlier forecast of 693.8 million.
Due to the vast number of products available, the smart homes market tends to be more resilient in the face of economic challenges like COVID-19 compared to other, less-diversified industries. Nevertheless, the smart homes market is expected to undergo a correction during 2020, where growth will slow for most countries.
Asia is forecast to see the biggest slowdown in 2020, with a downward revenue revision equating to USD 7.8 billion, and 66.2 million fewer shipments than originally forecast. As the Asia region begins to recover from the COVID-19 pandemic, production should ramp back up. However, depleted inventories could put added strain on potentially lower demand to start the second quarter of 2020. In the Americas, the smart home devices revenue outlook has been reduced by 10.6 percent. Device growth in the United States is forecast to remain stronger than in other countries. Growth projections could be further reduced if stock markets do not rebound, or if the virus spreads to influence the US supply chains. In some regions of the United States, and in other countries with widespread COVID-19 cases, the number of professional smart home installations could be reduced. Although demand may not slow for some channels, the capability to either ship and deliver products or to install devices could be drastically diminished. This has already occurred in China, where sites like Alibaba are taking orders for smart speakers, but delivery has been delayed.
Overall, despite the diversity of smart home ecosystems, supply chain challenges, combined with a restrained consumer market and installation and service delays, could further slow adoption of smart home technology in 2020.