According to The Future of Tech report from global information company, The NPD Group, home automation products are set to add $1.8 billion in new consumer electronics sales through 2018. It is forecasting a 74% growth in this category from 2016 to 2018 which will be driven by sales of monitoring and security projects as well as growth in power and sensors.
The Future of Tech report is a 24-month tech industry forecast, containing analysis and insights covering over 200 technology categories including home automation. It combines point-of-sale data, industry expertise and consumer information to help companies maximize their potential.
Stephen Baker, vice president, industry analyst for The NPD Group is quoted as saying in a press release “Awareness and interest are starting to build significantly for smart home products, with Alexa and Google Home catalyzing growth. Digital assistants will claim a major piece of the consumer market in 2018, and in doing so will drive adoption of compatible devices and solutions.”
Apparently, the report shows that emerging categories such as virtual and augmented reality and drones will be key contributors to new consumer electronics sales. Virtual reality is increasingly being used in making gaming, videos, and photos more immersive and it’s expected sales in 2018 will be nearly four times higher than sales in 2016. It is also expected that drone sales will double over this time and will be bolstered by the hobby category where there is strong demand combined with a relatively high average sale price.
It’s also anticipated that innovations in mainstream categories such as PCs and headphones will contribute to sales growth. Overall, headphones are expected to see year-over-year growth through 2018 with this category being led by in-ear wireless headphones.
Ben Arnold, executive director, industry analyst said “Multiple use cases and form factors are contributing to growth in headphones, as consumers may make multiple category purchases. A midmarket in-ear set may be perfect for trips to the gym, but may fall short of audiophiles at-home ideal.”