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Smart Home Devices Market Growing, Despite Mass Shortages

Despite a confluence of bad factors working against it, the worldwide market for smart home devices managed to grow by 10.3 per cent year-on-year in the September quarter of 2021.

During the three-month period, there were more than 221.8 million device shipments, according to the International Data Corporation (Worldwide Quarterly Smart Home Device Tracker.

“The smart home market continues to fare better than other consumer goods during the ongoing Covid-19 pandemic, although to varying degrees in different regions,” said Adam Wright, senior research analyst, Smart Home and Office Devices.

“By and large, consumers have shifted their spending priorities from other areas like vacations and going out to eat to focus on adding more comfort, conveniences, and entertainment at home.”

China was the only leading market that suffered a decline, dropping 5.2 per cent year-on-year. Despite this, they managed to be the second-largest country by shipment volume with just under a quarter of all shipments.

“Not only are consumers buying more devices, but they’re also buying up the stack as average selling prices (ASPs) have increased upwards of 3%,” said Jitesh Ubrani, research manager for IDC’s Mobile Device Trackers.

“The price increases are driven in part by the supply disruptions but new products and improved features across device types have also played a key role. ASPs for notable categories such as TVs increased by almost 7% as OLED displays grew in popularity. Similarly, smart displays, which typically cost more, are also outpacing traditional smart speakers.”

The rise of broadband in under-developed regions, coupled with a spike in disposal income after the pandemic and a growing awareness of smart home devices were the three key factors in the market’s growth.

However, ongoing privacy concerns and “consumers’ price sensitivity to upfront and ongoing costs of devices and services”, on top of the ongoing shipping and components issues may stifle the growth of the market in future months.



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