North American smart home market to reach $49.5bn by 2023
With more than 40 million installed smart home systems at the end of this year, North America is the most advanced smart home market in the world. According to PreciseSecurity.com research, a strong upward trend is expected to continue in the following years, with market revenue reaching $49.5bn by 2023.
More than 60 million homes in North America will be smart by 2023
In 2012 the North American smart home market reached $1.63bn value and continued to grow in year-on-year time. In the next five years, the market enlarged more than six times and hit $9.9bn worth, which was only the beginning of an even more significant expansion period.
Smart home market revenues reached $17.9bn in 2017, an increase of an incredible 45% year-on-year. 2018 brought a 24.8% year-on-year increase with a $22.3bn market value. The statistics show that the North American smart home market is expected to grow at a CAGR of 17.3% by 2023, reaching $49.5bn in yearly income.
At the same time, the number of households that adopt smart home systems is forecasted to grow at a compound annual growth rate of 12.3%, resulting in 60.5 million smart homes by 2023 or 41% of all households in the region.
Point solutions generate the most significant part of market revenue
Smart home systems can be divided into two major categories, whole-home systems and point solutions designed for specific in-home functionality. The 2019 data show that point solutions are, in most cases, the consumer’s first smart home purchase.
Divided by categories, global consumers spent $17.1bn on control and connectivity products, making it the most significant type of smart home purchase. Security solutions generated nearly $16bn in revenue.
During 2019, the consumers all over the world spent almost $17bn on smart appliances and another $16.3bn on home entertainment and energy management devices.