Driven by increasing number of connected devices in a household, global sales of smart home hub will grow at an annual rate 4% to reach US$327 million in 2022, according to a report by Beige Market Intelligence.
The increasing clutter of connected devices in a household creates the need for a central device that can help end-users control all the devices in one go, the report says. Smart home hub comes handy in these situations, thereby finding their application increasing among end-users worldwide.
The rapidly growing voice-first technology will spur the demand for smart hubs too. A voice-first world would create the window of opportunities for full-home integration – an integration of home, infrastructure, and household appliances, and also unify them into a cohesive unit such as smart home hub.
North America will remain the largest market for smart home hubs. In 2016, North America was the largest segment of the global smart home hub market, accounting for market share of 44.9% and 46.1% in terms of unit shipment and value, respectively.
The demand for smart home hub is directly proportional to the growth of smart home market in the region. Globally, North America is the largest market for smart home automation, and the market is growing rapidly. This will fuel the demand for smart home hubs in the region. By 2022, the region is forecast to account for more than 42% in market shares, in terms of both unit shipment and revenue.
The global smart home hub market is dominated by vendors that have international presence. Many of them are expected to expand their presence worldwide during the forecast period, especially in the fast-developing countries in Asia Pacific and Latin America.
The increase in per capita income and the number of dual-income households also constitute the basis of increasing spending on innovative devices such as smart home hubs.
Apart from an increasing demand from developed markets, factors such as the integration of voice assistance technology in household appliances and enhanced marketing, and visibility of these products online have contributed to the growth of the global smart home hub market, the report says.