IDC is out this week with a look at the smart home market in 2018 and predictions for 2019. According to IDC data, the global smart home device market is expected to grow 26.9 percent year-over-year to 832.7 million shipments.

In terms of categories, the home monitoring and security category is expected to continue to dominate with 140.3 million shipments in 2019. Lighting and smart speakers are expected to grow as well, with the former accounting for 56.9 million shipments in 2019 and the latter 144.3 million.

Jitesh Ubrani, IDC research manager, explains that Google and Amazon excelled at reaching new consumers at 2018, but the goal in 2019 should be to create a “cohesive experience” between different services:

“2018 was all about getting products into consumers’ homes and both Amazon and Google excelled at this through low-cost smart speakers and multiple bundles across device categories. However, 2019 will be more about tying the various devices together to form a more cohesive experience and more importantly, layering in additional services.”

Building on the success of Google and Amazon in 2018, IDC also expects that Apple will gain traction in the smart home space. The firm attributes this to the existing popularity of the Mac and iOS ecosystem, which should continue to attract companies to create HomeKit accessories:

Though the smart home market will essentially be dominated by two companies, Amazon and Google, Apple is also expected to gain traction in the coming years. The existing popularity of iOS and macOS devices combined with the availability of Apple apps/services on non-Apple products will help the company slowly entice more consumers into their ecosystem while also attracting third parties to build compatible devices.

You can read the full IDC report below.

Double-Digit Growth Expected in the Smart Home Market, Says IDC FRAMINGHAM, Mass., March 29, 2019 – The global market for smart home devices is expected to grow 26.9% year over year in 2019 to 832.7 million shipments, according to the International Data Corporation (IDC) Worldwide Quarterly Smart Home Device Tracker. Sustained growth is expected to continue with a compound annual growth rate (CAGR) of 16.9% over the 2019-2023 forecast period and nearly 1.6 billion devices shipped in 2023 as consumers adopt multiple devices within their homes and as global availability of products and services increases. “2018 was all about getting products into consumers’ homes and both Amazon and Google excelled at this through low-cost smart speakers and multiple bundles across device categories,” said Jitesh Ubrani research manager for IDC Mobile Device Trackers. “However, 2019 will be more about tying the various devices together to form a more cohesive experience and more importantly, layering in additional services.” Though the smart home market will essentially be dominated by two companies, Amazon and Google, Apple is also expected to gain traction in the coming years. The existing popularity of iOS and macOS devices combined with the availability of Apple apps/services on non-Apple products will help the company slowly entice more consumers into their ecosystem while also attracting third parties to build compatible devices. Beyond Apple, Samsung is another company that is worth watching as its products extend into every category and the company continues to invest in Bixby and Tizen. “One important trend to watch is how smart assistants become integrated throughout the home,” said Ramon T. Llamas, research director for IDC’s Consumer IoT Program. “Smart assistants will act as the point of contact with multiple smart home devices and essentially become the cornerstone of the smart home experience. Already we’ve been seeing that with smart speakers and this will eventually move on to appliances, thermostats, and all sorts of video entertainment.”

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