Household interest in 5G gathers pace

Cellular IoT to drive mobile SIOs to 60M by 2023

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SYDNEY, AUSTRALIA – The Australian mobile services market is expected to impact fixed line services as soon as next year with new 5G services becoming available, according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian Mobile Services Market Study FY2018 found there is growing interest amongst consumers for home Internet services based on 5G technologies, with 1 in 3 households interested in subscribing to such services.

This equates to around three million households potentially using 5G either as a primary or additional access technology as early as 2021.

According to Telsyte, around 15 per cent of Australian households (1.4M households) are currently mobile only. Telsyte research shows 41 per cent of Australians aged 16 to 34 are interested in subscribing to 5G services for the home, given higher awareness and higher levels of living in rental accommodation.

Telsyte’s research found interest in 5G broadband services remains the highest amongst those that are currently using mobile broadband (43%), indicating 5G might be an up-sell opportunity to mobile-only consumers.

5G broadband services are expected to be available in metro areas as early as next year from both Telstra and Optus; however, the potential demand of these services is still subject to the cost of 5G Internet plans and contractual obligations carriers have with nbn.

Extending the fixed line Internet

Telsyte research has found that 5G presents opportunities for mobile service providers, but also fixed line service providers including nbn.

Telsyte predicts that the short-term opportunity for carriers will be with dual-mode routers that utilise both fixed line nbn connections and 5G to provide a hybrid experience, building on the approach already used by carriers such as Telstra and Vodafone.

Telsyte believes limited spectrum, massively growing data usage, and potentially high costs for consumers will limit the number of households that might look to go mobile only.

This might give rise to more dual-mode routers which will utilise both fixed and wireless networks, using software to manage traffic across either network, having redundancy as well as the ability for lower latency and high burst speeds.

“Fixed and wireless technologies such as 5G can work hand-in-hand,” Telsyte Senior Analyst Alvin Lee says.

“Most consumers don’t want to think about what technologies are behind their Internet access, they just want it to be fast, good value and work seamlessly” Lee says.

For nbn, Telsyte believes there is an opportunity to update existing non-metro fixed wireless with 5G as well as using it as an option for upgrading the FTTN network in the future.

5G set to add to mobile mix

When it becomes available, 5G is expected to be an important mobile service provider (MSP) selection criteria. Telsyte research shows 37 per cent of Australian mobile users will see 5G as important when choosing their MSP, especially if it is not expected to be available from all MSPs initially.

This rate is higher amongst those planning to switch providers (66%). Telsyte estimates 32 per cent of mobile SIOs will be 5G by the end of June 2023 (FY23).

Nearly one third (31%) of smartphone owners are showing signs of holding off buying a new smartphone until 5G models become available.

5G “mobile” services are expected to be available either late 2019 or early 2020 depending on carrier rollouts.

M2M and cellular IoT to boost SIOs

The Australian mobile services market grew by over 650,000 new SIOs (Services in Operation) in the measured 6 months to June 2018, reaching 34.9 million at the end of June 2018.

The total 6-month net add in June 2018 was the highest during the June period for the past 8 years as more services were connected.

The lion’s share of growth continued to come from handsets (70%); however, Telsyte research shows the total 6-month net adds of M2M and cellular IoT connections have doubled compared to the same period 12 months ago.

Telsyte expects the increasing focus on cellular IoT consumer and business applications and continued NB-IoT network rollouts will underpin future growth, with enterprise applications taking the early lead.

Telsyte forecasts M2M and cellular IoT connections will reach 25 million by 2023, driven by the explosion of cellular IoT as new consumer and business applications becoming more widely adopted.

Cellular IoT applications include location tracking tags for asset tracking and IoT applications for transport, utilities, manufacturing, mining, agriculture and other industries.

A large volume of cellular IoT applications are expected to be based on NB-IoT technology as the low power, low data-rate and low-cost advantages are suitable for many applications that require power longevity rather than high data throughput.

For further information on the report or media enquiries contact:

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

  • Editors please note, Telsyte will not publicly supply individual service provider estimates.

The Telsyte Australian Mobile Services Market Study FY2018 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian mobile services market and sub segments

  • Analysis of market share and carrier performance

  • MNVO market share estimates

  • End-user trends and consumer expectations

  • Market trends and developments

  • Mobile services market KPIs

In preparing this study, Telsyte used:

  • An online survey conducted in July 2018 with a representative sample of 1,047 respondents, 16 years and older.

  • An online survey conducted in November 2017 with a representative sample of 1,162 respondents, 16 years and older.

  • Interviews conducted with executives from carriers, mobile service providers, device manufacturers, and channel partners.

  • Financial reports released by service providers.

  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

 

iPad remains top tablet as Australians take to interactive mobile gaming

Windows 2-in-1s continue to take market share from Android slates

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SYDNEY, AUSTRALIA; Australian tablet computer sales continue to grow with 1.5 million devices sold in the first half of 2018, up 3.6 per cent from the previous year, according to new research from emerging technology analyst firm Telsyte.

 

The Telsyte Australian Tablet Computer Study 2018-2022 found Apple maintained its market leadership (49.6% iOS vs. 26.0% Windows vs. 24.0% Android vs. 0.4% Chrome OS) due the popularity of the iPad 9.7 inch model, which was the leading product sold during the half.

The top three vendors were Apple, Samsung, and Microsoft. However, Telsyte believes there is a growing opportunity for other vendors to build on market awareness and tap into consumers shifting preferences from laptops to 2-in-1s.

Demand for 2-in-1s (Telsyte includes iPad Pro tablets as 2-in-1s) continued to grow, with sales in the first half of 2018 up 25 per cent over the same period last year.

Telsyte Managing Director, Foad Fadaghi, says the versatility of 2-in-1s are increasingly appealing to both businesses and consumers.

“There are now more 2-in-1 tablet options available in the sub-$1,000 range compared to 12 months ago,” Fadaghi says.

Traditional PC manufacturers such as Lenovo, Dell, HP, Acer and Asus are also set to benefit from the transition that is happening from laptops to touchscreen 2-in-1s.

Telsyte estimates around 2 million tablets were connected to Australia’s cellular mobile networks (3G/4G) at the end of June 2018. This figure is set to grow over the coming years as shared mobile data caps grow and newer devices make use of electronic SIMs (eSIMs) and new 5G networks.

Tablets usher in a new era of mobile gaming and augmented reality

Telsyte research shows interactive gaming has been a critical application for tablets, and a big driver for replacements and upgrades. Games remain the largest revenue generators on tablets in both Android and Apple app stores. This follows a similar trend with non-portable computers with Telsyte latest polling showing around 20 per cent of desktops PCs purchased by Australians are mainly for gaming.

In Australia, the interactive games industry generated more than $3 billion in 2017 (https://igea.net/2018/02/australian-consumer-spend-video-games-cracks-3-billion/) and Telsyte research shows around a third of the annual revenue ($1BN) was from mobile gaming, across both tablets and smartphones.

With more than 1 in 4 Australian tablet users playing games on their devices daily, popular titles such as Fortnite have skyrocketed on mobile devices. Telsyte estimates there were more than 1 million Fortnite players (16+ years of age) on mobile (tablets and smartphones) at the end of July 2018.

Augmented Reality (AR) is also gaining momentum on tablets, with more than 3,000 AR apps already on Apple’s App Store. Among tablet users who are interested in AR applications, games received the most interest (33%), followed by virtual tours, travel related apps and education apps. The most sought-after AR tablet game genres were shooters (40%), adventure games (31%) and platformers (30%).

For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

The Telsyte Tablet Computer Market Study 2018-2022 is a comprehensive study which provides subscribers with:

  • Market sizing, platform and vendor market shares and forecasts

  • End user trends across devices, application usage, platforms, channels and accessories

  • Tablet and computer purchase intentions and loyalty

  • Tablet audience estimates

  • Strategic analysis of market trends and issues

In preparing this study, Telsyte used:

  • An online survey conducted in July 2018 with a representative sample of 1,047 respondents, 16 years and older. An additional 338 Australian respondents, 16 years of age and older were surveyed to determine tablet purchases made between January 1 2018. to June 30 2018.

  • An online survey conducted in November 2017 with a representative sample of 1,162 respondents, 16 years and older.

  • Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.

  • Financial reports released by service providers and manufacturers.

  • On-going monitoring of local and global market and vendor trends.

  • Analyst reviews of leading tablet devices.

Editor’s note:

Tablet definition: A computer device consisting of a 7 inch or larger touch screen that can be used in a slate format (not requiring keyboard or mouse). Telsyte’s definitions includes 2-in-1 devices with detachable or foldable keyboard, and tabletop, or reclinable desktop screens that provide a tablet form factor experience.

2-in-1 definition: Primarily refers to laptops that have a touch screen and detachable keyboards or foldable form factors to provide a pure tablet-like experience. Tablets that are known for their versatility and mimic laptop-like experience with keyboards or type covers are also considered as 2-in-1s. E.g. Microsoft Surface tablets, iPad Pro, Samsung Galaxy Book, HP Spectre x360, Asus Chromebook Flip 2, or Lenovo Yoga 730.

Please note Telsyte measures Apple iPad Pro models as 2-in-1s for comparison reasons, due to having a specifically designed Apple keyboard which is typically sold together.

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Australian smartphone sales slow ahead of 5G

Smartwatch sales boost growing wearables market

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SYDNEY, AUSTRALIA - Australians are increasingly buying wearable devices as smartphone sales have slowed, according to new research from Australian emerging technology firm, Telsyte.

The Telsyte Australian Smartphone & Wearable Devices Market Study 2018-2022 found 4.3M smartphones sold in the first half of 2018, down 3.7 per cent from the same time last year (4.4M).

Despite leading in market share (53% Android vs. 47% Apple), Android sales during the measured period were down 7 per cent, compared to Apple which was up two per cent.

 

“Android smartphone sales had a sobering first half in 2018 after a strong upgrade year in 2017” Telsyte Senior analyst, Alvin Lee says.

“The balance of 2018 could remain in favour of Apple with more iPhone users expected to be coming out of contract this year” Lee says.

Apple remained market leader in the first half, with Samsung, Oppo and Huawei making up the top four according to Telsyte.

Australians are gravitating towards premium models as more high-end phones were purchased during the first half of 2018.

More than half (55%) of iPhones purchased in the first half of 2018 were the higher end models (iPhone 8, 8 Plus and X), compared to 50 per cent a year ago (iPhone 7 & 7 Plus). Furthermore, nearly one-third (32%) of smartphones purchased outright cost more than $800 in the first half of 2018 compared to only 22 per cent in 2016.

Apple maintained the highest repeat purchase intention (90%+), followed by Samsung (85%+). No other smartphone brand has a repeat purchase intention rate of higher than 55 per cent in Australia.

Consumers hold on for 5G handsets

Telsyte research shows around 1 in 3 smartphone owners are showing signs of holding off buying a new smartphone until 5G models become available. Telsyte believes this might impact the market performance in the next 18 months before 5G smartphones become widely available.

“The arrival of 5G will create the next big upgrade event” Telsyte Managing Director, Foad Fadaghi says.

“Carriers will be hoping 5G smartphones are available ahead of their network launches, if not soon thereafter” Fadaghi says.

Telsyte found that of those most willing to wait for 5G handsets includes users of premium model smartphones (e.g. Samsung Galaxy S8 & S9, iPhone X, iPhone 8) at around 50 per cent, and those currently on contract (40%).

Nearly half (47%) of iPhone users that intend to purchase a new iPhone in 2019 indicated they were likely to wait until a 5G iPhone was available.

Smartwatch sales blossom as interest in wearables increases

Smartwatch sales in Australia continue to grow strongly with around 680 thousand units sold during 1H18, up by more than 80 per cent from 1H17.   Telsyte estimates that around 15 per cent of smartphone users are now using a smartwatch.

Apple continued to dominate the smartwatch market, with more than half of all units sold being Apple Watch. Others, including Fitbit, Samsung and Garmin are starting to see growth due to greater awareness, lower prices and customers upgrading from basic fitness bands.

Apple Watch has the highest repeat purchase intention at 80 per cent, while Fitbit sits at around 60 per cent.

Smart accessories like Apple AirPods have been a key companion to the iPhone. Telsyte estimates more than 800,000 AirPods have been sold in Australia since launching at the end of 2016.

Other potential wearable categories, such as smart glasses are gaining interest from Australians. Telsyte research found 30 per cent are aware of smart glasses, and one-in-five are showing signs of being interested in buying one, especially if the design is slim and light (like sunglasses) and it is priced similarly to a smartphone or tablet.

For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

The Telsyte Australian Smartphone & Wearable Devices Market Study 2018-2022 is a comprehensive study which provides subscribers with:

  • Smartphone market sizing estimates, platform and vendor market shares and forecasts
  • Smart wrist-based wearables market sizing estimates, platform and vendor market shares and forecasts
  • End user trends across devices, application usage, platforms and operators
  • Purchase intentions and acquisition channels
  • Strategic analysis of market trends and issues
  • Device profiles and Telsyte analyst ratings of tested devices

Telsyte measures smart wearable devices in the Telsyte Australian Smartphone & Wearable Devices Market Study 2018-2022 as computing accessories worn on a user’s wrist typically paired and controlled via a smartphone. Examples includes products from Adidas, Apple, Asus, Fitbit, Garmin, Huawei, Jawbone, LG, Microsoft, Motorola, Nike, Pebble, Samsung, Sony, TomTom and others.

In preparing this study, Telsyte used:

  • An online survey conducted in July 2018 with a representative sample of 1,047 respondents, 16 years and older. An additional 338 Australian respondents, 16 years of age and older were surveyed to determine smartphones and smart wearables purchases made between January 1 2018. to June 30 2018.
  • An online survey conducted in November 2017 with a representative sample of 1,162 respondents, 16 years and older.
  • Interviews conducted with executives from service providers, network operators, manufacturers, retailers, financial analysts and channel partners.
  • Financial reports released by service providers and manufacturers.
  • On-going monitoring of local and global market and vendor trends.
  • Analyst reviews of leading smartphone and wearable devices.

Editor’s note:

Telsyte measures sales of devices (“sell out”), not shipments or sales to retailers or carriers (sometimes called “sell-in”). Telsyte believes this is a more accurate measure of performance of products in a marketplace. Telsyte does not rely on disclosure from vendors or general assumptions made for large multinational companies that do not release local market data. Telsyte uses a comprehensive methodology that includes surveys of consumers, discussions with vendors, carriers and their partners, retailers, and financial analysts. In addition, public financial results from manufacturers and carriers are used.  Telsyte tests a wide range of products in real life usage scenarios and conducts satisfaction and repeat purchase surveys with large and representative samples of Australian smart device users. Telsyte is a pioneer in measuring and reporting smartphone sales in Australia and has been providing insights on mobile technologies since 2006.

About Telsyte
Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

 

SVOD feeds Australians' insatiable appetite for streaming content

Video streaming growing strongly as consumers tap into multiple services

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SYDNEY, AUSTRALIA, The Australian Subscription Video on Demand (SVOD) services market continues to grow strongly reaching 9.1 million subscriptions at the end of June 2018, a year-on-year increase of 54 per cent, according to new research from emerging technology analyst firm Telsyte.

Over the same period, SVOD revenues in Australia grew substantially (up 90 per cent) reaching over $700m at the end of the 2018 financial year.

Telsyte forecasts Australians will hold more than twice as many SVOD subscriptions (22 million) by the end of June 2022.

Streaming entertainment - delivered to Internet connected devices such as smartphones, set top boxes, games consoles and smart TVs - is quickly becoming the mainstream way consumers view video content.

In total, Telsyte estimates 43 per cent of Australian households subscribed to SVOD services at the end of June 2018, an increase from around 30 per cent a year ago. This compares to around 70 per cent in the USA and 60 per cent in the UK, showing the growth opportunity within the next few years.

The market leader is Netflix with around 3.9 million subscriptions, with Stan in second place with a little over 1 million. However, new services (e.g. Amazon Prime, Foxtel Now), and a growing list of popular sports and special interests are collectively feeding Australian’s hunger for video content.

New SVOD services, including potentially those from Disney, HBO and various sporting codes, are expected to appeal to even more audiences.

Telsyte research shows Australians are increasingly comfortable with subscription-based entertainment services with millions turning to subscriptions for SVOD, music (e.g. Spotify, Apple Music), and game console subscriptions (e.g. PlayStation Plus, Xbox Live Gold).

The uptake of SVOD services is putting pressure on traditional pay TV, which is found in around one-third of Australian households (end of June 2018), a similar level to 2017. The growth of Fetch TV, that allows access to both SVOD and Pay TV content via its set top boxes, offset the decline in Foxtel subscriptions.

Telsyte Managing Director, Foad Fadaghi, says the SVOD market is not showing signs of being “winner takes all”.

“Consumer are becoming comfortable with multiple subscriptions and are subscribing to different providers for exclusive content and live sports” Fadaghi says.

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Sports a big winner for SVOD

Australians’ love for sports has been a big driver for SVOD, with sporting codes like AFL, NRL, and Netball (all exclusive to Telstra) showing strong demand, with usage exceeding the reported 1.5 million subscriptions in February 2018. Other popular niche services include UFC, NBA and MLB.

Despite the technical issues, Telsyte estimates more than 2 million Australians* watched the FIFA World Cup in June 2018 via Optus Sport.

Unlimited broadband and generous mobile caps underpinning SVOD consumption

SVOD services are big drivers for data consumption across fixed broadband and mobile networks.

“Average monthly data usage on mobile and fixed broadband by SVOD users are both over 45 per cent higher when compared to those that do not use SVOD” Telsyte Senior Analyst Alvin Lee says.

SVOD depends on broadband connectivity and as nbn and 5G wireless deployments continue, more Australians will be able to access streaming in 4K HDR quality, which is fast becoming standard on new smart TVs, and is increasingly supported on other digital devices.

Telsyte research found 1 in 6 Australians streamed movies or TV shows in 4K HDR in the last 12 months. Amongst 4K TV owners, 1 in 3 streamed 4K HDR content, demonstrating growing consumer appetite for higher video quality when available.

According to Telsyte, 4K TVs are already in some 15 per cent of Australian households and penetration will grow to around 50 per cent by 2022.

Broadcast VOD growth slowing

According to Telsyte, growth in uptake of catch up and live traditional TV streaming services – sometimes called Broadcast VOD (i.e. 7Plus, 9Now, tenplay, ABC iView, SBS On Demand.) has slowed down, with SVOD penetration on track to overtake it. Telsyte estimates there are currently 4.1 million households with SVOD services versus 5.2 million households with broadcast VOD.

However, BVOD and ad-free services in the case of ABC iView, continue to be an important channel for children’s content with more than 5.5 million children viewing these services, a 6 per cent year-on-year increase.

*editor note: Telsyte will not be releasing Optus Sport subscription estimates, the provided estimate is audience size based on survey data only

For further information on the study or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

The Telsyte Australian SVOD Market Study 2018 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian SVOD services market
  • Insights into consumer attitudes and technology adoption trends
  • Uptake and detailed analysis of SVOD services, pay TV and BVOD TV services
  • Services consumption preference including devices, fixed and mobile service
  • Insights into the future of subscription video services in Australia.

In preparing this study, Telsyte used:

  • An online survey conducted in November 2017 with a representative sample of 1,162 respondents, 16 years and older.
  • An online survey conducted in July 2018 with a representative sample of 1,047 respondents, 16 years and older.
  • Interviews conducted with executives from service providers, network operators, content providers, retailers, SVOD companies, and various hardware platform manufacturers.
  • Financial reports released by service providers and network operators.
  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.

Smart speakers help send Australian IoT@Home market skyward

Concerns around privacy and security of connected devices persist

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SYDNEY, AUSTRALIA – The Australian Internet of Things at home (IoT@Home) market grew 55 per cent in 2017, reaching $583 million according to new research from emerging technology analyst firm Telsyte.

The Telsyte Australian IoT@Home Market Study 2018 found rapid uptake in smart speakers, as well as increasing internet connectivity of appliances such as air conditioners and security cameras, is creating the foundation for an Internet-connected device explosion expected to accelerate beyond 2020.

According to Telsyte research, the average Australian household has 17.1 connected devices in 2018, up from 13.7 in 2017. Telsyte forecasts this number to grow to 37 by 2022 or 381 million Internet-connected devices nationally. 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. (see coverage figure below)

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Telsyte believes 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 a 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.

Smart speaker sales boom, laying the foundation for an IoT@Home explosion

Telsyte estimated around half a million Australian households owned a smart speaker at the end of 2017, up from less than 10,000 in 2016. Telsyte forecasts around 3 million Australian households will have a smart speaker by 2022.

[Updated: 10/10/2018] At the end of June 2018 Telsyte estimates that 1.15 million Australian household owned a smart speaker.

The smart speaker category was the fastest growing IoT@Home product in 2017, with Google Home and Google Home mini being the market leaders driven by holiday season sales, free giveaways with Pixel 2 smartphones, and multipack offers. Telsyte expects Apple and Amazon to catch up as their products became more widely available in 2018.

This surge in smart speaker adoption is expected to lay the foundation for demand for other IoT@Home products. Telsyte research shows smart speaker users are twice as likely to purchase other IoT@Home products compared to non-users.

The study also found that around 87 per cent of smart speaker users are seeking advanced IoT@Home functions based on AI and machine learning, compared to 68 per cent for those without smart speakers. Some examples include alerting if strangers are repeatedly appearing around the home, or air conditioners that adjust based on knowing a change in schedule through access to an online calendar.

The most important factor for consumers purchasing IoT@Home products are that they are easy to use or “just work”. This includes being easy to setup, and not requiring active human monitoring. 

Google sets the pace, but Apple users present an untapped opportunity

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.

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For further information on the report or media enquiries contact:

Foad Fadaghi
Managing Director
Tel: +61 2 9235 5851
Email: ffadaghi@telsyte.com.au

Alvin Lee
Senior Analyst
Tel: +61 2 9235 5890
Email: alee@telsyte.com.au

Telsyte’s Australian IoT@Home Market Study 2018 is a comprehensive study which provides subscribers with:

  • Market sizing and forecasts of the Australian IoT@Home market by detailed segments including services and installation revenues

  • Insights into consumer attitudes and technology adoption trends

  • Analysis of vendor strategies and key growth segments

  • IoT@Home user profiles, including early adopters, those on the verge of adopting and those not yet to be interested.

  • Analysis of the IoT@Home ecosystems

  • Analysis of retail and online channels and their importance to IoT@Home products

  • Insights into where consumers begin with IoT@Home journey and key market drivers expected to drive rapid adoption in different segments.

In preparing this study, Telsyte used:

  • Interviews conducted with executives from service providers, network operators, manufacturers and channel partners of IoT@Home products and services.

  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,162 respondents in November 2017.

  • An online survey of a representative sample of Australians 16+ years of age conducted with 1,178 respondents in January 2018.

  • Financial reports released by service providers and manufacturers.

  • On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte is Australia’s leading emerging technology analyst firm. Telsyte analysts deliver market research, insights and advisory into enterprise and consumer technologies. Telsyte is an independent business unit of DXC.technology. For more information visit www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial or non-commercial purpose, except for news reporting, comment, criticism, teaching and scholarship.