Market set to near $5Bn by 2021 as the smart home devices go mainstream
SYDNEY, AUSTRALIA – Tuesday May 9, 2017 Australian households are in the middle of an Internet of Things (IoT) at home revolution with more than 40 per cent of Australian households now having at least one IoT@Home device, up from 29 per cent in the previous year, according to emerging technology research firm Telsyte.
IoT devices are smart Internet connected devices and appliances that allow consumers to control, monitor and enhance their lifestyles, typically via mobile apps.
Telsyte estimates that the average Australian household in 2017 has 13.7 Internet connected devices with this number set to balloon to 30.7 by 2021, with 14.0 of these being IoT@Home device.
By 2021, in total, Australian households are expected to have 311 million connected devices, of which nearly half of these are expected to be new IoT@Home devices.
Telsyte’s extensive IoT@Home taxonomy includes detailed analysis of smart energy, smart security and smart lifestyle products, and the installation and services that underpin them.
Telsyte estimates that the collective value of the IoT@Home market in Australia will be $4.7bn by 2021, a sharp rise from the $377M in 2016
Telsyte believes intelligent features that use cloud-based machine learning to provide lifestyle benefits which go beyond self-monitoring and user initiated outcomes will be the key to attracting and maintaining customers. For example this might be a voice activated hub that understands a regular behavior and automatically prompts the user without being pre-programmed to give an alert.
According to Telsyte research, despite the expected rapid adoption, barriers such as concerns around cyber security and privacy will still need to be overcome. Half of Australians indicate they are concerned about security when “everything will be connected to the Internet in the future”, according to Telsyte’s survey.
IoT@Home is also expected to be a new battleground for telecommunications companies, retailers, energy suppliers, insurance companies and category specialists all seeking to differentiate themselves in price competitive industries, against the backdrop of widespread rollout of nbn services, fierce online retail competition and rapid digitisation of consumer lifestyles.
“The Internet of things at home will touch many industries as businesses use smart automation to create new products and services for their customers” Telsyte managing director Foad Fadaghi says.
"The challenge will be to take households on the automation journey while handling privacy, security and upfront costs concerns" Fadaghi says.
For further information on the report or media enquiries contact:
Tel: +61 2 9235 5851
Telsyte’s Australian Internet of Things @ Home Market Study 2017 is a comprehensive 98 page 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 ecosystem competitors including SWOT analysis
- 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 1,060 respondents in November 2016.
- An online survey of a representative sample of Australians 16+ years of age conducted with 1,032 respondents in April 2017.
- Financial reports released by service providers and manufacturers.
- On-going monitoring of local and global market and vendor trends.
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.