Smart Light Bulb Revenues in North America
San Diego, California, July 11, 2019— North America unit shipments for smart bulbs, lamps, fixtures and light strips will increase 12X in the next five years, according to a recently published report by smart home research firm ON World. By 2024, smart light bulb revenues in the US and Canada will reach $1.5 billion up from $254 million in 2018.
“Seamless integration with voice assistants such as Amazon Alexa and Google Assistant has driven growth for smart home lighting over the past 2-3 years,” said Mareca Hatler, ON World’s research director. “Hub-less solutions that simplify smart home networks are attracting a growing number of first-time smart lighting buyers.”
ON World’s Q2 2019 survey with smart bulb buyers found that 77% purchased their first smart bulb within the past year. Current smart bulb buyers are planning an average of 5.7 additional smart bulbs over the next two years. However, 1 in 4 have returned at least one smart bulb over the past two years and 30% indicate that it was “moderately difficult” to “nearly impossible” to install their smart bulb.
Overall smart bulb ASPs dropped by 17% last year even though higher cost RGB color smart bulb sales make up 40% of the smart bulb sales. This is largely attributed to growing sales for hub-less, low cost smart bulbs using WiFi or Bluetooth. The largest portion of smart bulb sales is currently from Amazon and Electronics outlets.
Today, approximately half of smart lighting purchases happen online.
However, the fastest growth over the next five years will come from mass-market retailers such as Walmart with its expanding ecommerce sales. ON World’s survey with mass market consumers who have not yet purchased a smart light bulb found that 41% plan to buy smart lighting products from Walmart, followed by Amazon, Home Depot, Lowe’s and Target.
ON World’s research has uncovered significant channel growth and consumer demand in the North American market. Voice assistants such as Amazon Alexa and Google Assistant have simplified the technical complexity of deploying and configuring smart home devices. This is illustrated by C by GE’s seamless integration with Google Home Mini that is hub-less and hides the user from the “pain point” of network integration.
Investigations for this report include the following:
About ON World:
Back to News