More than half of all Australian households ‘have started their smart home journey’, according to latest research from Telsyte, who recently released findings indicating five million Australian homes had at least one IoT@home device installed by the end of 2018.

Meanwhile, that’s just a drop in the ocean of what’s expected to occur over the coming years, with a third of Australians ‘interested in modernising their current residence to make it smarter’.

So, who’s investing in smart home technology and where is the Australian market headed in the next few years.

The Australian IoT@Home Market Study

Each year research firm Telsyte takes a deep dive into the tech realm of the average Australian home, looking specifically at IoT@Home adoption.

Now in its seventh year, their latest report was released in May and its findings indicate the nation is at a tipping point, driven largely by the uptake in smart speakers and the pending introduction of the 5G mobile network.

They note the Australian IoT (Internet of Things) at home (IoT@Home) market grew an astounding 57 per cent during the past 12 months to $1.1 billion in 2018.

Over the coming years that market is expected to steadily increase, and is forecast to reach $5.3 Billion by 2023.

The report found “more than five million Australian households (more than 50 per cent of total households) have started the smart home journey with at least one IoT@Home product installed by the end of 2018”.

 “The increase of more than 30 per cent – from around four million households in 2017 – was primarily due to surging adoption of smart speakers,” they reflect.

Increasingly invested

Not only has Telsyte found more people have smart devices within their homes, there’s also an increasing trend where households have more than one internet-connected item.

“Amongst the five million IoT@Home adopters, Telsyte research finds around a quarter are considered ‘invested’ in smart home technology, with at least five different IoT@Home products already installed in the home (e.g. cameras, smart plugs, smart lighting and smart appliances),” they note.

 “This figure is set to grow even further with Telsyte predicting the average household in 2023 will have 37 devices, around half being IoT@Home devices.  At the end of 2018, the average Australian household had 17 connected devices, primarily made up of smartphones, computers, tablets and other gadgets.”

Who’s into smart homes

When it comes to those “invested” in smart technology, with five devices or more, Telsyte explains the starting point is often simple internet connected devices.

“IoT@Home adopters are more likely to be younger families and tech enthusiasts who have a range of consumer devices, such as drones, VR headsets, and location tracking tags.

Meanwhile, the trend towards full smart homes featuring energy efficiency, climate control, and automated security is also gaining traction.

“Nearly a third of Australians are interested in modernising their current residence to make it smarter,” Telsyte reflects.

What’s driving adoption

When it comes to the smart home, it’s the ‘usual suspects’ driving an uptake like energy efficiency, smart appliances, smart speakers, and smart security.

Telsyte notes energy efficiency currently counts as the number one driver, courtesy of recent government initiatives.

“The smart energy segment is now worth over one-third of the total IoT@Home market by revenue,” they note.

Meanwhile smart appliances aren’t far behind.

“Smart connected appliances (e.g. whitegoods) are expected to be the longer term IoT@Home market revenue driver beyond 2020, making up around 40 per cent of the industry’s annual revenue by 2023.”

And of course, the burgeoning smart speaker market is also a major instigator.

“Australia’s IoT@Home market continued to benefit from surging smart speaker adoption and Telsyte forecasts the smart speaker category will continue to be the most successful IoT@Home product throughout 2019 with 2.5 million (26 per cent) Australian households using smart speakers by end of the year, up from 1.6 million (16 per cent) in 2018.

“There is also a growing number of people interested in smart speaker applications. Some one in four IoT@Home adopters and potential adopters are interested in controlling IoT@Home and other connected devices, such as controlling lights and unlocking doors using smart speakers.”

Which smart speaker?

Unlike America where Amazon reigns supreme, Australia’s smart speaker market is dominated by Google.

Telsyte found Google commanded a 72 per cent market share in 2018, while Amazon had 15 per cent, Apple held five per cent, and eight per cent went to “the others”.

“Telsyte forecasts Google and Amazon smart “assistant” speakers will continue to be the top two sellers during 2019,” the report notes.

What does it mean?

Telsyte’s research provides a fascinating insight into Australia’s connected device landscape.

Their findings indicate we are a nation becoming increasingly used to internet-connected devices and that trend is translating into our homes through the rollout of smart appliances, climate control and automated security.

Meanwhile, better internet connectivity through the 5G and nbn are paving the way for an even more connected future, with home buyers and tenants now actively seeking a fast, stable internet supported by enough power points to charge devices.

“Smart homes need speedy connectivity and Australia is entering a new era of nbn™ and 5G wireless broadband services,” Telsyte reflects.

“Telsyte’s latest consumer research shows nbn is the most important IoT@Home related feature when Australians move into a new home, when either renting or buying.

“Ample built-in power plugs around the house to charge more connected devices as well as fixed network connections in rooms are seen as important.”

About Lera Smart Home Solutions

Lera Smart Home Solutions is a leading installer of smart home technology in the greater Sydney region. Our team boasts over 20 years’ experience in IT networking, programming and the electrical industry.

We have sourced the most reliable and cost efficient solutions from around the world to provide the very best in smart home solutions, and work with our clients to understand their needs.

You can learn more about transforming your house into a smart home here, access our smart home calculators or contact us directly for further advice.