Analyst Juniper Research forecasts that by the end of the year, 7.4 billion home-connected devices will be operating globally. This figure could almost double in 2025 to hit 13.5 billion.
In 2020, the vast majority of connected devices (smart speakers, connected TVs, video game consoles) are smart entertainment devices, and this category will produce over $230 billion in revenue in 2025.
Smart home automation could also expand to 3.9 billion active devices in 2025, but it will only be used five years from now in around one household out of 10 worldwide. These devices will fall primarily into the categories of smart locks and wired lightbulbs that do not have to be replaced on a regular basis.
Smart devices are more correlated with entertainment than enhancing one’s home environment (audio and video streaming).