Guidehouse Insights Estimates Global Market for Smart Home Connectivity Devices Will Grow at a Compound Annual Growth Rate of 21% Through 2031 – PR Newswire
Market barriers to smart home adoption include connectivity issues and need for protocol bridges
BOULDER, Colo., July 6, 2022 /PRNewswire/ — A new report from Guidehouse Insights analyzes the connectivity technologies that provide the foundations for smart home deployments and provides an assessment of unit shipments and device revenues in the smart home space, broken down by primary connectivity protocol.
The introduction of wireless protocols has opened the market to a wider range of consumers, including those who are not building homes from the ground up. The ubiquity of protocols like Wi-Fi and Bluetooth, and the popularity of voice interfaces, have helped boost the popularity of smart home devices. According to a new report from Guidehouse Insights, the global market for smart home connectivity devices is expected to increase by a compound annual growth rate (CAGR) of 21.3% in from 2022 to 2031, reaching a total of 984.6 million devices shipped by 2031.
“Only with the introduction of wireless protocols to connect devices has the smart home really become viable,” says Francesco Radicati, senior research analyst with Guidehouse Insights. “Prior to the launch of technologies like Wi-Fi, Zigbee, and Z-Wave, a smart home would have needed to be outfitted with cables to connect every device, making it a more expensive proposition and difficult to customize over time. The cost and work involved meant smart home devices were limited to affluent homeowners who could make such changes to their own homes.”
One of the key barriers to smart home adoption has been the surfeit of wireless protocols that connect certain classes of devices and ecosystems. Some are easily recognizable to consumers, like Bluetooth and Wi-Fi, while others are more familiar to smart home early adopters, like Zigbee and Z-Wave. Very few are directly interoperable with one another, so consumers usually need protocol bridges or dedicated hubs before one set of devices will connect to another, according to the report.
The report, Smart Home Connectivity, discusses how different connectivity protocols are used in smart home settings, and how these protocols are dependent on different use cases. It also provides an outlook for expected shipments and revenues of smart home devices by primary connectivity protocol. An executive summary of the report is available for free download on the Guidehouse Insights website.
About Guidehouse Insights
Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at www.guidehouseinsights.com.
Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 13,000 professionals in over 50 locations globally. Guidehouse is …….