Spending Decreases Now, But Drives Future Change —
Despite the pandemic’s impact around the world, consumer smart home spending will still grow in 2020. However, spending will be well below of pre-COVID-19 expectations. A new study from global tech market advisory firm, ABI Research, finds that smart home revenues will reach US$85 billion in 2020, just a 4% increase over 2019. Pre-pandemic 2020 smart home revenue growth was forecasted to hit 21% over 2019 — a US$14.1 billion loss.
Economic uncertainty, consumer spend constraint, restricted physical retail opportunities, installation restrictions, disrupted manufacturing, and distribution, all have curbed smart home spending, but the study finds that the spending shortfall is temporary.
The pandemic is a double-edged sword for the smart home industry. While the immediate impact may be negative, many of the long-term and structural changes to consumer lives initiated in 2020 will have a lasting positive impact that will help to drive adoption in many areas of the smart home space.
As restrictions and drags on smart home shipments recede, a greater momentum behind smart home support across a range of devices and systems will push annual smart home revenue higher.
Originally published on isemag.com November 1, 2020