Smart home market to grow 5x by 2024 to $192B

The global smart home market will quintuple in size by 2023, hitting $192 billion, up from $41 billion in 2018.

That’s according to the Smart Home Device Database from IHS Markit.

Smart lights, speakers and connected home appliances will be the fastest-growing segments. The U.S. made up 35% of the global market in 2018, followed by China with 18%.

“The smart-home market has burgeoned into a consumer technology heavyweight,” said Blake Kozak, principle analyst for IHS Markit, in a statement on Tuesday.

Kozak said the next two years will be a pivotal time, as companies and service providers seek new markets amid concerns over user privacy.

IKEA and Wyze are companies of interest, since they offer very low-cost devices. Larger companies such as Google and its Works with Nest program are expected to respond to the strategy shift in 2020. Amazon Alexa recently reached compliance with the U.S. Health Insurance Portability and Accountability Act. Ring launched a small and medium business segment.

Comcast will focus on Xfinity around content, while Centrica with the Hive smart home, plans to focus on energy and services.

Kozak said there has been a brief hiatus in hardware development by the leaders with a greater focus on software, analytics and acquisitions. However, Google, Apple and Samsung will be shipping new smart speakers.

To help lower privacy worries, Kozak said smart home providers should focus on edge processing to reduce the need for cloud computing systems that send private data over the internet.

If providers can use standards and implement regulations, “innovation in the smart home will be less a source of anxiety for consumers and instead become a cause for optimism,” Kozak added.

RELATED: NXP sees growth in car, home security and smart wallets