The global smart-home market is being hit hard by the coronavirus.
The market now is forecast to fall nearly $20 billion short of previous estimates for 2020, according to new forecast by Omdia.
The market is expected to total $101 billion this year, down from the previous forecast of $120.6 billion for a drop of $19.5 billion.
Smart home shipments include devices such as smart lights, connected thermostats, security systems and connected appliances.
Smart home device shipments are projected to reach 604 million units in 2020, down from the earlier projections of 694 million.
“Due to the vast number of products available, the smart home market tends to be more resilient in the face of economic challenges like coronavirus compared to other, less-diversified industries,” stated Blake Kozak, principal analyst at Omdia. “Nevertheless, the smart home market is expected to undergo a correction during 2020, where growth will slow for most countries.”
As might be expected, Asia is projected to see the biggest slowdown, with 66 million fewer shipments than originally forecast.
In the Americas, the smart home device outlook has been reduced by 11%, with growth stronger than other countries.
Only time will tell if a further market correction is coming.