The European smart home market reaches 22 million units in Q2 2019, IDC reports-- a 17.8% Y-o-Y increase with CEE showing the biggest growth (43.5% Y-o-Y) even as W. Europe holds the lion's share of the market (86.47%).
The analyst expects such growth to continue in the near future, with shipments rising from 107.8m in 2019 to 185.5m in 2023 at a CAGR of 14.5%. Video entertainment and smart speakers are to make 65% of the 2023 shipment total.
Smart speaker shipments total 4.1m units on the Quarter, a 33.2% Y-o-Y increase. Amazon takes back the lead in the quarter thanks to the release of the Echo Show 5, following Google taking first place for the first time in Q1 2019. Smart speakers record the biggest annual growth, with Google and Amazon leading in CEE, since consumers consider local language support essential when buying such a device.
In the meantime smart TV shipments suffer in comparison with a "really good" Q2 2018 driven by sports events and related promotions. The analyst expects the category to recover and grow in both volume and value, as new operating systems enter the W. European market and embedded smart assistants become a smart TV standard. The ongoing transition to the DVB-T2 standard, improving content and better picture quality should also boost the market in CEE.
Video entertainment devices (including smart TVs and digital media adapters) account for 56.8% of the Q2 2019 smart home market. The category is forecast to expect the smallest growth over the next 5 years, but should still lead in 2023 with 41.7% market share. Smart speakers hold Q2 2019 market share of 18.7%. Samsung is set to launch a Bixby-powered smart speaker in 2019, bringing another voice assistant in a competitive market.
Lighting, security and thermostat account for 20.5% of the smart home market, and are expected to represent 30.1% of shipments by 2023.
