Australians have embraced smart home technology with nearly two thirds (6.3 million) of households having at least one smart home product, according to the latest research from analyst firm Telsyte.
The Telsyte Australia IoT@Home Market Study 2021 revealed more than 1,000,000 households purchased IoT (Internet of Things) home products including smart speakers, smart lighting and smart security cameras since 2020.
A big factor in this growth was the increased time spent at home during the pandemic and greater awareness of products and services.
Sales of smart home products reached $1.7 billion in 2021, that’s an increase of 15 per cent year on year with the forecast for the market to be worth $4.4 billion by 2025.
Telsyte’s study is now in its ninth year and the results show the fastest growing categories in 2021 were smart security lighting (up 50 per cent), installation services (up 40 per cent) and smart speakers (up 28 per cent).
It was also found that smart security products also remain popular, and not just for traditional security monitoring but for new uses including keeping an eye on children, pets and packages.
Telsyte found mart speakers offered customers a gateway into the IoT@Home market.
Last year, 2.9 million Australian homes (29 per cent) had at least one with Google and Amazon the market leaders with 80 per cent combined installed base share.
Apple’s HomePod mini sold more than 125,000 devices in Australia in 2021 and is gaining ground on the competition after slow sales of the more expensive model.
The study also revealed why customers adopted their smart home products with close to two thirds of their smart home budget focused on creating convenience and better connectivity.
One in 10 households have invested, for example, in a robot vacuum with half (51 per cent) of consumers saying they’re interested in a home that will automatically clean itself.
The Telsyte research predicts the average number of connected devices in Australian homes is set to increase from 20.5 in 2021 to 33.8 by 2025 and much of this is driven by IoT@Home devices.
The growth is being driven by demand for volume products like smart light bulbs and increasingly smarter appliances.
But despite the growth there is some still some key hurdles for the industry with the prospect of price rises for smart home products and services because of inflation, chip shortages and demand outstripping supply in some categories.
The move to apartment living could also stifle the uptake of some products such as smart gardening devices and smart doorbells.
Another boost is the arrival of the new industry standard Matter which will unify devices across multiple platforms and brands so they can still communicate with one another.
There are more than 120 companies in the Matter alliance including Amazon, Apple, Arlo, Google, Samsung, Oppo and Schneider Electric.
The final specifications for Matter will be released around mid 2022 for products like light bulbs, power plugs, door locks, security sensors, bridges/hubs, smart TVs and set top boxes.
Telsyte says at least 30 to 40 per cent of IoT at home devices sold maybe compatible with matter before the end of 2023.
The smart energy category will also grow rapidly thanks to the increasing price of power and the rise of the electric vehicle market.