Spending on Internet of Things (IoT) home products and services in Australia is forecast to hit $3.2 billion by 2019 according to a new Telsyte report.
The IoT @ Home Market Study found that the market is currently worth $289 million. By 2019, the average household may have 24 Internet connected devices, up from 9 this year.
The market for smart lifestyle products (appliances and gardening devices) will hit $1.2 billion, while smart home services (installation, management, and cloud services) will reach $812 million, the report said.
Smart security products (alarms, cameras, sensors and smart locks) will be worth $416 million; smart energy products such as sensors, outlets and light bulbs will bring in $658 million; and smart hubs around $64 million.
According to Telsyte senior analyst Steven Noble, the market is set to evolve as Internet connectivity is “baked into” many existing products and services.
“While long mooted, the Internet-enabled ‘whitegood’ will finally become the norm, as most manufacturers — aided by the lower cost of micro-processing — build wireless Internet connectivity into most of their products,” he said.
For example, Noble said that Samsung has committed to connecting 90 per cent of its new products to the Internet by 2017. By 2020, all of its products will be IoT ready.
In addition, Telstra is just one of the brands has added a Connected Home section to its e-commerce websites, while Target in the US is experimenting with IoT demonstration homes in its stores.
“Retailers will be critical to the rise of the IoT @ home as they will expose consumers to new product experiences,” he said.
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