Smart home hub market grows at 5% over the next five years: Report

Smart home hub market grows at 5% over the next five years: Report
The global smart home hub market is expected to cross 3.9 million units, growing at an annual rate of 5.4% between 2016 and 2022, according to a report released by Research and Markets.

The increase in per capita income and the number of dual-income households constitute the basis of increasing spending on innovative devices such as smart home hub.

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 market.

The global smart home hub market is dominated by vendors that have international presence. Many international players are expected to expand their presence worldwide during the forecast period, especially in the fast-developing countries in APAC and Latin America to gain market share. Major vendors mentioned in the report include Flex (Wink Labs), LG Electronics and Samsung.

Increasing number of connected devices in households, growing popularity of voice-first technology, increasing investment on IoT by vendors and rising push for digital economy in developing economies are the latest trends that the market is going to foresee.

The online channel dominated the smart home hub market in North America compared to retail channels in 2016. However, retail sales would increase significantly during the forecast period due to increasing shelf-presence of these devices in retail stores such as Walmart, Target and Best Buy.

Demand for smart home grows

An increase in annual savings of end-users and their enhanced spending sentiments after the economic recovery has increased the demand for connected home hub in North America.

The market in North America is likely to witness the sale of 1.66 million units in 2022. The US is the key country having a majority of market share in the region. The major reason for the growth in demand in Europe is the introduction of upgraded smart home hubs in the market by vendors. A high penetration of smart devices in the UK and Germany paves a significant market penetration opportunity for smart home hub.

Urbanization of developing countries in APAC is expected to bolster the demand. While China accounted for major market for smart home hubs in 2016, countries such as Japan, South Korea, and India are expected to witness increased demand due to improving the quality of life and increasing per capita disposable income in these countries during the forecast period.

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