Consumer IoT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Consumer IoT Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The consumer IoT market is expected to register a CAGR of 17.52% during the forecast period of 2021-2026. IoT technology has become a keystone for conducting consumer-driven activities, thus, empowering them to upgrade the existing preferences with newer and updated models. The adoption of smart home technology is another area of application witnessing rapid growth.

Key Highlights

• According to the Internet & Television Association's estimates, by 2020, the number of IoT connected devices is expected to reach 50.1 billion from 34.8 billion in 2018. The growth can majorly be attributed to the integration of connectivity competence in a large number of devices and applications, along with the development of various networking protocols that have appreciably advanced the growth of the consumer IoT market across various end-user industries.​
• A wide range of consumer categories, including fitness, healthcare, automobiles, and the home, itself creates the consumer Internet of Things. As smartwatches, earbuds, and televisions are on the rise for the last few years, further component level miniaturizations, increased sensor accuracy, and data analysis are paving the way for connected medical accessories.
• Additionally, as 5G network rollouts for powering IoT consumer electronics gain traction, allied sales are expected to maximize. The new cellular network technology is expected to offer speed and low latency to the consumer's market.
• Accordingly, in the wake of rising demand, most FMCG industry players may experience shelving IoT devices and networks, thus, reducing the supply/availability-level constraints. This is also a result of reducing the cost of IoT hardware and services with the cost of sensors and controllers dropping over the years.
• Whereas on the automotive front, applications, such as connected car systems and in-car infotainment systems, are leveraging IoT capabilities. Major automotive OEMs have been collaborating with component and solution providers to develop mission-critical offerings. This is their take on competing across enhanced customer experience stack.
• Due to the recent shut down of businesses across the globe owing to the influence of COVID-19 is expected to influence the consumer IoT market negatively, as prices of chips, sensors and other components used in IoT devices may increase over time due to no production and exhaustion of stocks maintained by the manufacturers in few months. ​

Key Market TrendsHome Automation is Expected to Account for Maximum Market Share

• With the growing penetration of high-speed internet, the adoption of connected devices and smart home applications is increasing, especially in regions, such as Europe, North America, and Asia-pacific. Some of the majorly incorporated solutions include voice assistants, smart thermostats, smart lighting, security cameras, smart locks, and smart doors, among others.
• As the consumer propensity toward the adoption of smart speakers is increasing. This is, in turn, driving the demand for other connected devices, which may be controlled via such devices. According to Loup Ventures, the smart speaker market's revenue, globally, is expected to reach USD 35.5 billion by 2025.
• Furthermore, products, such as Amazon Echo and Google Home, which have become a central hub for smart home gadgets and their voice-activated assistants, by offering convenience across homes. As of September 2019, Amazon Alexa's skills stood at 100,000, which was at 80,000, back in December 2018. These growing skillsets, among voice assistants, indicate increased functionality in terms of controlling various home operations and lighting and temperature.
• IoT enabled devices may also help in reducing costs and conserve energy across home applications. For instance, as per United Kingdom-based Carbon Trust, a provider of occupancy sensors, tend to identify if a person is in the room. The company further claims that such a product offering serves the capability to reduce energy use by 30% in homes. Whereas its Daylight sensors offer lowered energy usage by up to 40%.
• Automated HVAC control systems and smart thermostats are increasingly becoming part of the homes. For instance, Nest is one of the famous smart home device manufacturers. It is a learning thermostat that automatically adjusts temperature based on the location using a far-field sensor, to determine the time and temperature from a distance; the device works with Alexa as well. Multiple device manufacturers have been witnessed collaborating with solution providers to enter this segment category.

North America Occupies the Largest Market Share

• North America is one of the significant markets for the consumer IoT market in terms of market size. The wide-scale adoption of IoT technologies in many industries like automotive, retail, healthcare, and consumer electronics is one reason for the growth of the IoT market in this region.
• The adoption of smart home technology is another area of application witnessing rapid growth. As per the Consumer Technology Association (CTA), 69% of people in the United States have at least one smart home device, with the expectation of allied devices to reach 35.2 million units in 2020.
• It is one of the leading regions in terms of research into developing IoT applications in new end-user industries. According to Cisco, the US and Canada are expected to be among the countries with the highest average of per capita devices and connections by 2022.​
• Furthermore, the rising number of chronic cases, a growing number of diabetes cases have increased the adoption of IoT enabled devices in the healthcare sector in the region. The rapid increase in the adoption of smart connected devices and rising digitalization is likely to drive this market's growth in North America.
• On the other hand, the growth of companies providing supporting technology for consumer IoT also boosts the market's growth. For instance, in October 2019, Microsoft announced the market availability of its Azure Sphere microcontroller (MCU) by February 2020. Microsoft Azure Sphere is a new microchip technology that enables device manufacturers to create equipment with native, highly secure cloud integration. This latest offering from the company can connect the billions of MCU-based devices that cannot currently be connected securely due to limited computing and storage capabilities.​

Competitive Landscape

The global consumer IoT market is highly fragmented. The major players have used various strategies such as new product launches, expansions, agreements, joint ventures, partnerships, acquisitions, and others to increase their footprints in this market. Some of the key developments in the market are:

• In April 2020 - Sony showcased new true wireless earbuds and over-ear head that includes two new mid-range models. These earphones continually analyze environmental ambient sound components and provide one-touch access to Siri, among other features.
• In January 2020 - Verizon collaborated with Honeywell to simplify and speed up the deployment of new communication-enabled intelligent sensors and controls for the smart electric grid. They are expected to drive energy savings by more quickly deploying smart electric grid technologies by integrating Verizon's Managed Connectivity LTE solutions into Honeywell's next-generation smart meters and other electric, gas, and water solutions.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Asahi Kasei Corporation
BASF SE
Celgard, LLC
ENTEK
ITOCHU Corporation.
Johnson Matthey
Mitsubishi Chemical Corporation.
NICHIA CORPORATION
Sumitomo Chemical Co., Ltd.
Targray Technology International
Umicore

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