With more than 40 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 $49.5 billion by 2023.
More than 60m 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 60.5m 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.