China’s smart home device market rebounds with 9.2% growth in 2021: IDC

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BEIJING, April 19, 2022 – According to IDC’s Q4 2021 China Smart Home Devices Quarterly Tracking Report, China’s smart home devices market shipment volume in Q4 2021 reached 63.37 million units, an increase of 4.1% year over year. Over 12 months, China’s smart home device market shipped over 220 million units, a year-on-year increase of 9.2%. Although the market did not reach double-digit growth in 2021, the volume of shipments shows that smart home upgrades were the main driver of growth in 2021. IDC expects shipments of the Chinese smart home device market increased by 17.1% year-on-year and exceeded 260 million units moved. as smart home optimization and upgrades continue.

“China’s smart home market in 2021 has undergone upgrades and adjustments and we expect smart home technologies to accelerate in 2022 due to the rise of the fully managed services market. as well as changing user-device interactions, upgrading connectivity, and expanding sales channels,” said Quorra Liu, Principal Market Analyst for Device Research at IDC China.

smart speaker shipments contracted year-over-year, but product upgrades drove market sales up 15% year-over-year. Among them, smart displays maintained their shipment growth under the joint impetus of market demand and manufacturers’ strategic transformation, increasing the market share of smart displays to account for 39% of the overall speaker market. smart. At the same time, the smart speaker market has also accelerated the pace of upgrading and actively expanded the layout of the high-end market through improved sound quality, connection and appearance. of the product.

Video entertainment shipments fell further, with the smart TV market shipping just 38.86 million units in 2021, down 9.4% year-on-year. Due to a lack of inventory due to supply chain issues, manufacturers are actively targeting the high-end market, and smart TVs have greatly improved screen size, display technology and human-device interaction capabilities. Voice interaction is gradually being used for smart TVs, with smart TV shipments with built-in voice assistants now accounting for 72.1% of China’s smart TV shipments in 2021. This is an increase of nearly 9 percentage points year over year.

the lighting market maintained rapid growth as user demand for smart lighting gradually increased. The types of lighting equipment are diversified, downlights, track lights have joined smart lighting systems, and the market for smart switches has also seen a strong increase.

Home monitoring/security the growth went hand in hand with other upgrades. Among them, the significant improvement in the resolution of CCTV led to the growth of the smart camera and doorbell market in 2021. The use of camera, display and AI technology in the lock market smart door systems has improved product functions, which has led to more units shipped overall. The proportion of video locks to smart locks increased to 22.3% in 2021 while the penetration rate of visual recognition functions reached 13.6%.

In 2021, the smart home device market in all categories has seen different degrees of product structure adjustments and functional upgrading. This laid the foundation for the further development of the market. IDC expects these tweaks and upgrades to drive growth in 2022 due to three important factors:

1. Refined products that combine intelligence and functionality to achieve efficient upgrades

The starting point for consumers purchasing smart home devices has gradually shifted from early adopters to higher expectations for functionality and quality. Manufacturers need to pay more attention to the attributes of the products themselves in addition to the novelty brought about by artificial intelligence (AI) capabilities built into product functions.

2. Refinement of sales operations and expansion in the middle and high price segments

Last year, driven by product upgrades and rising costs, the average price of China’s smart home equipment market increased significantly as demand and units shipped for price segments high in categories such as smart TVs, smart speakers and robot vacuum cleaners have also increased. With the maturity of technology and the lowering of the cost of some components, the price of products in the middle to high-end market will open up a greater adjustment margin in 2022. Under the general trend of upgrading of the market, the refined sales the operation of products in the middle and high price segments is expected to further increase the market demand in the middle and high price segments.

3. Improved channels to reduce user learning costs through high quality scope

Although the smart home market in China has been growing for several years, it is still far from commonplace. There are buyers who don’t fully understand a smart home and a significant number of potential buyers who try to find out more about them. Manufacturers need to streamline the process of setting up new smart home devices. They also need to upgrade their channel services – from professionalism of frontline staff, improved reach and accessibility through active cooperation with offline channels such as home furnishing malls where product demonstrations can be carried out.

To learn more about the China Smart Home Devices Quarterly Tracker – Product Segmentation, contact Quorra Liu [email protected] For media inquiries, please contact Maggie Xie [email protected]

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About IDC Tracker

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About IDC

International Data Corporation (IDC) is the world’s leading provider of business information, consulting services and events for the information technology, telecommunications and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the global leader in technology media, data and marketing services. To learn more about IDC, visit www.idc.com. Follow IDC on Twitter at @IDCAP and LinkedIn. Subscribe to the IDC-Blog for industry news and insights.

For any request, please contact:

Frank Wang

Associate Vice President, IDC China

Telephone: (+86-10) 5889 1588

Email: [email protected]

Maggie Xie

Marketing, IDC China

Telephone: (+86-10) 5889 1558

Email: [email protected]

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