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Internet-connected devices surging on the back of strong smart speaker sales


Australia is in the middle of an internet-connected device explosion with the market growing 55 per cent last year and the uptake set to accelerate beyond 2020, according to technology analysts Telsyte.

The Telsyte Australian IoT (Internet of Things) @Home Market Study 2018 reveals a fast adoption in smart speakers and security cameras has led to this trend.

There are 17.1 connected devices in an average Australian household in 2018, according to the Telsyte research, up from 13.7 in 2017.

But by 2022 that number is set to soar to 37 with more than 381 million internet-connected devices in the country.

Apart from smart speakers, the most popular connected products are smart sensors, lights, smart doorbells and smart appliances like fridges, washing machines and robot vacuum cleaners.

“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.

More than half a million Australian households now own a smart speaker – a huge jump when you consider there were less than 10,000 in 2016.

But by 2022 more than 3 million smart speakers will be found in Australian homes so it’s no wonder the product was the fastest growing IoT device in 2017.

Google Home and Google Home Mini were the market leaders thanks to strong sales through the Christmas shopping period.

But Telsyte expects Apple and Amazon will figure more prominently now their products are available in 2018.


This rapid adoption of smart speakers is expected to lay the foundation for even higher demand for other connected products.

Telsyte says smart speaker users are twice as likely to purchase other IoT products compared to non-users.

And 87 per cent of these savvy smart speaker customers are also looking to more advanced IoT functionality compared to just 68 per cent of those without smart speakers.

While Google has the early lead, Telsyte says Apple and its loyal user base will consolidate the sales figures and offer strong opportunities for third-party manufacturers.

At the end of 2017, there was an estimated 2.2 million Australians that use five or more Apple products and services compared to 1.2 million using Google products.

“The lock-in and ripple effects of Apple’s ecosystem amongst Australian families are too big for manufacturers to ignore,” Telsyte’s Alvin Lee says.