05 Jul 2020
Middle East & Africa Smart Home Devices Market Poised for Decline as Consumers Reprioritize Spending in Wake of COVID-19 Pandemic
Dubai – Spending on smart home devices in the Middle East and Africa (MEA) is expected to decline 6.0% year on year in H2 2020, according to the latest insights from International Data Corporation (IDC). The global technology research and consulting firm's Quarterly Smart Home Devices Tracker forecasts that spending across the region for the six-month period will total $3.5 billion, down from $3.76 billion in H2 2019.
"The stay-at-home measures introduced across the region to curb the spread of COVID-19 have caused consumers to reprioritize their investments in smart home devices, while the economic fallout has led to a more frugal approach to spending," says Isaac T. Ngatia, a senior research analyst at IDC. "For example, we expect to see a greater focus on energy-saving devices (e.g., thermostats, smart bulbs, smart outlets, and switches) as end users look to reduce their utilities bills while having to remain at home for prolonged periods. Likewise, set-top boxes and streaming sticks are expected to see a surge in demand as consumers seek out affordable—yet varied—options to keep them entertained while at home."
"Conversely, some previously high-value and fast-growing product categories are poised for sharp declines," continues Ngatia. "Spending on smart TVs, for example, is forecast to drop 6.2% year on year in H2 2020 as consumers opt to tighten their purse strings. A global shortage of panels for smart TVs is compounding this trend by causing supply issues. Smart large appliances, which includes all powered devices designed to be used in a fixed space and not portable within the house, are expected to decline. This is mainly due to the perceived high cost of these devices.
Overall, IDC expects to see a deceleration in demand across all product categories for the remainder of 2020. However, shipments should start to regain momentum next year. As such, IDC expects spending on smart home devices across the region to increase 27.7% year on year in 2021.
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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 subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
IDC in the Middle East, Turkey, and Africa
For the Middle East, Turkey, and Africa region, IDC retains a coordinated network of offices in Riyadh, Nairobi, Lagos, Johannesburg, Cairo, and Istanbul, with a regional center in Dubai. Our coverage couples local insight with an international perspective to provide a comprehensive understanding of markets in these dynamic regions. Our market intelligence services are unparalleled in depth, consistency, scope, and accuracy. IDC Middle East, Africa, and Turkey currently fields over 130 analysts, consultants, and conference associates across the region. To learn more about IDC MEA, please visit www.idc.com/mea. You can follow IDC MEA on Twitter at @IDCMEA.
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