Across the US, there has been a rapid fire adoption of smart home tech. In fact, 69% American households own a smart device, with 349 million smart devices shipped in 2021. Projected to hit 1.77 billion devices shipped in 2025, and become a $205.61 billion dollar industry by 2026, this phenomenon is only growing.
There are several general categories of smart devices, including appliances, lighting, usage monitors, security, and entertainment. Within these categories, several products have seen high levels of adoption, with 56% of homes featuring audio video devices and 46% featuring wireless speakers. These products are also often catered towards different areas of the house. For example, the Amazon Alexa serves functions related to the living room, as well as a smart television or hub with a screen. This is the room most likely to be equipped with these smart devices, evidenced by the roughly 25% of homes equipped with each of the aforementioned products.
Although there are more than 175 million smart homes worldwide, millennials and Generation Z buyers are at the forefront of this global boom. In fact, 86% of millennials say they would pay more for a connected home, 63% want to own a home with smart security systems, and 46% of homeowners want their home to have smart devices. Younger generations are more likely to adopt new technologies because they value the convenience of these products. Additionally, smart tech is cost effective and helps offer a more secure home. These products can reduce water, HVAC, and electricity bills, as well as allow consumers to watch their homes while away.
Pioneers like Jim Sutherland, the engineer for Westinghouse Electric who invented the first smart home device, are bringing exciting new changes to the smart homes market. In the future, expect to see mechanical innovations, different pricing models, and an acquisition rate increase. With 4 new devices expected to be purchased by Americans in the next 12 months, be sure to remain updated on what the industry has to offer.