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 Led by smart speakers, the global installed base of smart home devices is set to exceed 2 billion devices this year, a new report has shown.

Smart speakers had the most global shipments in 2021, with 195 million, followed by lighting, plugs/switches and connected health devices, according to global research firm Omdia.

The devices forecast to grow the fastest over the next five years include water leak sensors/shutoff valves, connected major home appliances, plugs/switches, air quality monitors and smart door locks, projected to have a compound annual growth rate (CAGR) greater than 30 per cent from 2021 to 2026.

"It is an exciting time for the smart home industry as brands rapidly innovate and produce devices that combine advanced features, like facial recognition and video analytics with door locks and the inclusion of radar technology in smart speakers and thermostats," said Blake Kozak, senior principal analyst, Omdia.

Omdia estimated that about 55 per cent of broadband households in the US had smart home devices installed last year.

For the Europe, Middle East, and Africa region, about 21 per cent of broadband households had a smart home device in 2021.

By comparison, the Americas region had a penetration rate of 44 per cent while Asia and Oceania had a penetration rate of about 14 per cent in 2021.

In terms of market share for unit shipments, Xiaomi was estimated to be the market leader in 2021, followed by Alibaba, Amazon, Google, and Baidu.

The next few years will also prove difficult for many brands as costs continue to rise.

However, strong growth for smart home devices, on par with pre-pandemic levels, is expected to return starting in 2023, driven by increased demand in energy management solutions and the impending release of the Matter, an open-source reliable IoT compatibility industry standard globally, the report noted.