Smart Home Market in Europe to grow at a CAGR rate of 14.9% between 2020-2025
The smart home market in Europe grew 12.2%, in the fourth quarter of 2020, compared to the same period of 2019, according to research by International Data Corporation. The organisation reports that 41.3 million units were shipped to the region between October and December.
Antonio Arantes, Senior Research Analyst for smart home devices in Western Europe at International Data Corporation, said: “After a negative first half of 2020, the smart home market recovered and showed continued growth and interest among consumers. Smart TVs, one of the products that suffered the most between January and June of 2020, recovered the trend during the third quarter and were one of the biggest contributors to growth.”
Jan Prenosil, Senior Research Analyst for smart home devices in Central and Eastern Europe, said the smart home market in CEE grew 6.4% year-on-year, with video entertainment being the main driver.
Smart speakers recorded solid growth, mainly in Russia, where the popularity of local manufacturers is growing steadily.
“We saw good results in categories related to other home products such as home monitoring and security, thermostats, and lighting,” said Mr Prenosil. “The structure of household spending has changed during the pandemic and consumers focused more on improving their homes. This led to increased interest in smart devices as part of these enhancements.”
In 2025, the smart home market is expected to reach almost 210 million units in Europe and grow at a compound annual growth rate (CAGR) of 14.94% in 2020–2025.
Mr Arantes added: “The market is expected to return to double-digit growth in 2021. The installed base of smart home products will increase in the coming years and there is an exponential effect in the number of products in each household.”
- Video entertainment accounted for 48.4% of the market, reaching more than 20 million units, a growth of 11.4% compared to the previous year. Digital Media Adaptor shipments rose 35.4% due to the launch of new products such as Google Chromecast with Google TV and a new Amazon Fire TV Stick.
- Smart speakers continued the good performance of the previous quarters, growing 11.9% and reaching a market share of 28%. Amazon and Google continue as numbers 1 and 2 in Europe.
- Home Monitoring/Security, Lighting, and thermostats accounted for more than eight million units in the European market, which was an increase of 12.2% year-on-year, the biggest growth in 2020.