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2023: The Smart Home Forecast

With the economy slowing down, will the smart-home falter in 2023? One prediction suggests the answer is probably not entirely. Even with wallets being squeezed, homeowners will still readily rely on technology to make their homes secure.

An end-of-the-year prediction from IDC showed that while worsening macroeconomic conditions have led to a reduction in the outlook for global smart-home device shipments—with an expected decline of 2.6% in 2022—there will still be modest growth in 2023.

Though the global market is forecast to return to growth in 2023, the smart-home market will remain relatively low at 4.6% with most of the growth coming from emerging markets, as well as from China.

Home monitoring and security products will account for the largest share and experience the highest growth rates within the smart-home market. This includes technology such as cameras, doorbells, or door locks, just to name a few.

During the pandemic, security solutions saw high demand, as the trend toward DIY (do it yourself) soared and price points came down. Going forward, consumers will dictate the smart-home market in the year ahead, and if the price points are right, we may continue to see small growth in the security area of the smart-home market.

Other areas of the smart home that will see growth through 2026, according to IDC, include video entertainment, lighting, smart speakers, and thermostats, just to name a few.

The bottomline is the smart home will be driven by consumers and homeowners that want more security and convenience in their homes. This is corroborated by a November 2022 report from ABI Research, which suggests consumer demand and expectations for smart-home capabilities are continuing to grow.

What are your thoughts? What technologies will you put in the homes you are building in 2023 and beyond? Does security take center stage? Or is it something else? What other areas would you like to connect the homes you are building?

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