The market, currently worth $583 million, is expected to explode in the next five years, according to market researchers Telsyte
Australian consumers have embraced the smart speakers launched late last year by the likes of Google and Amazon, laying the foundation for an explosion on IoT devices in the home in a market that expected to grow to 381 million internet–connected devices nationally in 2022 according to new research from market analysts Telsyte.
The Australian Internet of Things at home (IoT@Home) market grew 55 per cent in 2017, reaching a value of $583 million, with the smart speaker category the fastest growing IoT Home product.
Telsyte estimates around half a million Australian households currently own a smart speaker, up from less than 10,000 in 2016. Telsyte forecasts around 3 million Australian households will have a smart speaker by 2022.
Google and Google home mini are currently the market leaders in the category with Apple and Amazon set to catch up as their products become more widely available.
Despite Google’s early lead in the smart speaker market, Telsyte believes Apple’s loyal users base presents strong opportunities for third party manufactures. At the end of 2017, Telsyte estimated there was 2.2 million Australians that use five or more Apple products and services compared to 1.2 million using Google products (using a similar methodology).
“The lock-in and ripple effects of Apple’s ecosystem amongst Australian families are too big for IoT@Home manufacturers to ignore,” Telsyte Senior Analyst Alvin Lee says.
But the smart speaker segment is the tip of the iceberg.
The average Australian household has 17.1 connected devices in 2018, up from 13.7 in 2017, according ot the research. Telsyte forecasts this number to grow to 37 by 2022. Most of this growth is expected to come from IoT@Home devices and associated services, which Telsyte categorises into smart energy, smart security, smart lifestyle and smart hubs.
The smart lifestyle sector, which consists of whitegoods, appliances and house & garden products, will be the largest sector by 2022, as manufacturers bring to market products that have Internet connectivity as a standard feature. This contrasts with today’s market where smart appliances can command aSmart speakers fuel growth of IoT@ Home market significant premium.
“Building connectivity into consumer products will allow manufacturers to develop new business models and provide intelligent services that not only change consumers’ lifestyles, but disrupt a number of traditional industries”, Telsyte Managing Director Foad Fadaghi says.
Telsyte research shows a clear shift in where consumers start their IoT@Home journey. More consumers are now interested in enhancing their kitchen with smart speakers and smart appliances.
However, despite the potential growth of the IoT@Home market, challenges such as privacy and cyber security concerns are impacting consumer appetite. Some 41 per cent of Australians are “more concerned about cybersecurity than last year” and 61 per cent are concerned about their private information being exposed online, up 5 per cent from the previous year.