A new report from Navigant Research analyzes several key product categories expected to foster device interactions in the home, providing global market forecasts, segmented by device type and region, through 2028.
While smart home hubs have provided a solution to the lack of interoperability among different devices to create a better smart home user experience, these hubs often serve little purpose outside of this. As component prices have declined and the market sees increased consolidation around a few communicating technologies, manufacturers are embedding the technology associated with hubs into existing product portfolios. These moves create fewer barriers, provide a better user experience for consumers, and enable vendors to own the customer experience around the smart home. According to the report, global revenue for devices with hub capabilities is expected to increase from $12.6 billion in 2019 to $72.9 billion in 2028 at a compound annual growth rate (CAGR) of 21.6%.
“Smart home hubs are eliminating the need for smart home hubs in their current form, decreasing barriers to entry for consumers, increasing interoperability between products, creating smarter homes, and creating a new meaning for the term smart devices,” says Paige Leuschner, senior research analyst with Navigant Research. “However, broader issues such as consumers’ concerns surrounding cybersecurity and manufacturers’ uncertainty about ROI when building Internet of Things (IoT) products hold back some manufacturers from fully embracing this trend.”
Regionally, market growth is largely driven by North America and Asia Pacific—regions where manufacturers have communicated intentions for transforming products within their portfolio into smart home hubs. According to the report, these regions are also expected to see higher volumes of devices that have the potential to play the role of a hub in the home.
The report, Market Data: Smart Home Hubs, addresses several key product categories that are expected to foster device interactions in the home. These include traditional smart home hubs, smart speakers, smart appliances, routers, and smart TVs. The study provides an analysis of the market drivers, barriers, and overall trends. Global market forecasts, segmented by device type and region, extend through 2028.