Market intelligence firm International Data Corporation (IDC), forecasts the global shipments for smart home devices to increase by 14.4% between 2019 and 2023.
Annual shipments are expected to reach more than 1.39 billion from 815 million during the forecasts period, a 23.5% year over year growth.
Adam Wight, a senior research analyst at IDCC's IoT Consumer division, said: "Driving the market's growth over the next few years is a combination of downward pressure on prices from intensifying competition; rising adoption of smart assistants, and rising consumer awareness of the conveniences, costs savings, and energy reductions that smart home devices provide."
The US is expected to represent a lion's share of the market, with a 9.5% annual growth in shipments. The number of shipments in the US market is expected to reach more than 560 million units in 2023.
China is expected to represent the highest growth rate at a CAGR of 22.6% between 2019 and 2023, followed by Canada with a CAGR of 19.9% and Western Europe with a CAGR of 14.7%.
Ongoing concerns about security and privacy, consumers' price sensitivity to upfront and ongoing costs of devices and services, and the rising economic uncertainty stemming from the volatility of financial markets across the world are expected to hinder the market growth.