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20 Dec 2018

Smart Speaker Sales Explode in EMEA With More Than 3.3 Million Devices Shipped in 3Q18, According to IDC

LONDON, December 20, 2018 — The smart home market in Europe, the Middle East, and Africa (EMEA) grew 31.4% in 3Q18, reaching 23.6 million units shipped. All product categories posted double-digit growth, with smart speakers growing 116.7% in the quarter.

"Although Amazon and Google didn't launch their speakers in new markets in the region, their performance was exceptionally good, fueled by continued growth in consumer demand. In 4Q18, the market will continue to expand, as Google Home enters four new markets and Amazon Echo devices launch in Italy and Spain," said António Arantes, research analyst for smart home devices in EMEA. "Strong promotions during Black Friday continued to drive tracking for smart speakers and the discounts during the Christmas season will further drive strong performance for these products and help increase penetration of intelligent assistants in the region."

The smart home market is forecast to reach 193.2 million units shipped in 2022, with a compound annual growth rate (CAGR) of 19.2% for 2018–2022. Video entertainment (including smart TVs and digital media adapters) will remain the largest product category, but it is expected to lose share to the other product categories. Smart speakers are forecast to represent 23.3% of the smart home market in 2022, the second-largest category, while lighting will come third with 11% share, experiencing the strongest growth, with a CAGR of 43.8% for 2018–2022.

"The growing adoption of smart speakers will become the driving force for the entire smart home market and home automation products," said Arantes. "Voice interaction will be the main interface in the years to come and consumers will increasingly want to control their home devices in this way, resulting in a shift from non-smart devices toward smart devices. Even for mature categories, such as smart TVs, we expect that nearly 50% of new products shipped in EMEA will come with an intelligent assistant platform embedded."

Category Highlights

Video entertainment products including smart TVs and digital media adapters, such as Google's Chromecast, Apple TV, and Amazon Fire TV, are suffering from longer replacement cycles than other products. This category is expected to grow at a CAGR of 11.2% for 2018–2022, the lowest in the forecast period. The majority of TVs sold in the region are already smart and consumers are buying products at higher prices but keeping them for longer periods.

Smart speakers will reach 45 million units in 2022, representing 23.3% of the market. In 3Q18, Amazon took the lion's share with more than half of the devices shipped in EMEA, while Google had 38.8% market share. Apple is the third-largest player, but the limited availability of the HomePod is impacting its growth in the region. By 2021, shipments of devices with Google Assistant embedded are expected to surpass Alexa-enabled devices.

Home monitoring and security devices, ranging from smart sensors to door bells and cameras, are expected to grow at a five-year CAGR of 20.7% for 2018–2022. This very fragmented category will see consolidation in the next few years, as there are many vendors selling only one product, which is not sustainable in the future. Many players will evolve from individual solutions to a full range of home products as they consolidate.

Lighting and thermostat devices combined represented only 6.8% of the market in 3Q18, but this is expected to grow to 13.6% by 2022. A wide range of low-priced lighting products offered to the market by many new brands will catch consumers' attention and adoption of smart bulbs will increase. Thermostats and lighting devices are also attracting interest from larger players. In 4Q18, Amazon invested in Tado, a German thermostat start-up and competitor to Nest.

EMEA Smart Home Devices Historical

Top 5 Brand Shipments, Market Share, and Year-Over-Year Growth, 3Q18 (Shipments in Thousands)

Vendor

3Q18 Shipment Volume

3Q18 Market

Share

3Q17 Shipment Volume

3Q17 Market Share

Year-Over-Year Change

1. Samsung

3,752

15.9%

3,301

18.4%

13.6%

2. LG

3,467

14.7%

2,962

16.5%

17.1%

3. Google

3,419

14.5%

2,009

11.2%

70.2%

4. Amazon.com

3,092

13.1%

1,991

11.1%

55.4%

5. Sony

1,682

7.1%

1,467

8.2%

14.6%

Others

8,154

34.7%

6,204

34.6%

31.4%

Total

23,566

100.0%

17,934

100.0%

31.4%



Source: IDC Worldwide Quarterly Smart Home Device Tracker, December 2018



EMEA Smart Home Devices Forecast by Product Category

3Q18 Forecast for 2018–2022 (Shipments in Thousands)

Product Category

2018 Shipments*

2018 Share*

2022 Shipments**

2022 Share**

Home monitoring/ security

10,032

9.5%

21,106

10.9%

Lighting

4,849

4.6%

21,256

11.0%

Smart speaker

17,666

16.8%

44,970

23.3%

Thermostat

2,336

2.2%

5,059

2.6%

Video entertainment

68,816

65.2%

96,697

50.1%

Others

1,777

1.7%

4,132

2.1%

Total

105,476

100.0%

193,220

100.0%



Source: IDC Worldwide Quarterly Smart Home Device Tracker, December 2018

*Historical data to 3Q18 + forecast data for 4Q18

**Forecast data



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International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading media, data, and marketing services company that activates and engages the most influential technology buyers. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC  and LinkedIn.

For more information, contact:



Francisco Jeronimo

+44 (0) 20 8987 7186

fjeronimo@idc.com



Antonio Arantes

+44 (0) 20 8987 7203

aarantes@idc.com



Coverage

Contact
For more information, contact:

Antonio Arantes
aarantes@idc.com
+44 (0) 20 8987 7203

Francisco Jeronimo
fjeronimo@idc.com
+44(0)20 8987 7186