Australian smart speaker sales are booming and Google is leading the market.

Analyst firm Telsyte estimates around half a million Australian households currently own a smart speaker, up from less than 10,000 in 2016.

By 2022, 3 million Australian households will have a smart speaker, Telsyte predicts.

The figures are contained in the Telsyte Australian [email protected] Market Study 2018, which found the smart speakers were the fastest growing category in terms f internet-connected devices for the home 2017. 

Despite Google’s early lead — thanks to holiday season sales, free giveaways with Pixel 2 smartphones, and multipack offers — Telsyte believes Apple and Amazon will catch up as their products become more widely available this year.

For one, there are more Australians locked into the Apple’s ecosystem. Telsyte estimated there was 2.2 million Australians that use five or more Apple products and services compared to 1.2 million using Google products (using a similar methodology) at the end of 2017.

“The lock-in and ripple effects of Apple’s ecosystem amongst Australian families are too big for [email protected] manufacturers to ignore,” said Telsyte Senior Analyst Alvin Lee. 

Telsyte expects the adoption to smart speakers will lead to greater adoption of other connected devices for the home.

Challenges around security and privacy are putting a damper on growth for the entire [email protected] market. According to the research, some 41 per cent of Australians are “more concerned about cybersecurity than last year” and 61 per cent are concerned about their private information being exposed online, up 5 per cent from the previous year.

According to a comScore survey conducted in Q1 2018, only three in 10 smart speaker owners have ever placed an order using the device, with security concerns over data and payment details topping the list.  

Infographic: Alexa, I Don't Trust You To Be My Shopping Assistant | Statista

The most important factor for consumers purchasing [email protected] products are that they are easy to use or “just work”. This includes being easy to setup, and not requiring active human monitoring.

According to the Telsyte, the average Australian household has 17.1 connected devices in 2018, up from 13.7 in 2017. This number is tipped to grow to 37 by 2022. That’s 381 million Internet-connected devices in homes across Australia.

In 2017 the Australian Internet of Things at home ([email protected]) market grew 55 per cent to reach $583 million.

 

Telsyte IoT@Home Study 2018

Telsyte believes the smart lifestyle sector, which consists of whitegoods, appliances and house & garden products, will be the largest sector by 2022, as manufacturers bring to market products that have Internet connectivity as a standard feature. This contrasts with today’s market where smart appliances can command a significant premium.

“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,” said Foad Fadaghi, Telsyte Managing Director.

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