According to a report released today by International Data Corporation (IDC), China's shipments of smart home devices in the first half of 2021, has reached 100 million units. This is a 13.7% increase compared to the same period last year.
For the whole year of 2021, the shipments are expected to outnumber 230 million, a 14.6% increase, the report says.
The report also indicates that the compound annual growth rate over the next 5 years will be 21.4%. By 2025, the expected shipments of smart home devices will be close to 540 million units.
The development of smart home devices in China market is in the preliminary stage, the report says. Besides, sales of lighting, security and automation-related products will increase remarkably, and consumers are now buying their products mainly from offline scenarios.
Smartphone manufacturer Xiaomi is one of the leading brands of smart home devices in China, with affordable and relatively reliable products, from cleaning robots to ceiling lights. In January 2019, Xiaomi’s CEO Lei Jun announced the company was planning to spend about $1.5 billion over the next five years to grow its AI-powered smart home ecosystem.
Xiaomi faces two major competitors, Huawei and home appliances company Haier.
Huawei has branded itself with the combination of “security plus smart home intelligence,” while Haier provides scenario solutions under the brand Sanyiniao, covering balcony, kitchen, air quality control, water supply, etc.
Asia market’s household penetration will be 10.8% in 2021 and is expected to hit 20.1% by 2022, according to Statista.