MEA smart home devices market poised for decline


July 5, 2020 | By RetailME Bureau

Spending on smart home devices in the Middle East and Africa (MEA) is expected to decline 6% year-on-year in the second half (H2) of 2020, indicates International Data Corporation (IDC). Across the region, spending on smart home devices for the six-month period will total $3.5 billion, down from $3.76 billion in H2 2019, IDC’s ‘Quarterly Smart Home Devices Tracker’ forecasts.

“The stay-at-home measures introduced across the region to curb the spread of COVID-19 have caused consumers to reprioritise their investments in smart home devices, while the economic fallout has led to a more frugal approach to spending,” observed Isaac T. Ngatia, senior research analyst, 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 utility 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,” added 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 include 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.

 

For all the latest retail news from the Middle East, follow us on Twitter and LinkedIn, like us on Facebook and subscribe to our YouTube page.

Comments

comments

Previous Article Next Article

SHARE

YOU MAY ALSO LIKE /


Lulu Group partners with Amazon expanding grocery offerings to online customers in the UAE

Abu Dhabi based grocery retail chain Lulu Group has partnered with Amazon 

Continue Reading

November 24, 2022 | By RetailME Bureau
Food Tech Valley partners with Tradeling to boost UAE’s food ecosystem

UAE-government-led initiative Food Tech Valley – announced in 2021 by His Highness 

Continue Reading

November 17, 2022 | By RetailME Bureau
Lulu Hypermarket to open in The Dubai Mall in 2023

Abu Dhabi-based supermarket chain Lulu Hypermarket is all set to open in 

Continue Reading

November 10, 2022 | By Rupkatha B
Beyond Meat’s Q3 2022 results “disappointing”

Plant-based meat brand Beyond Meat’s financial results for the third quarter of 

Continue Reading

November 10, 2022 | By RetailME Bureau
Barakat unveils new biodegradable packaging

UAE’s fresh produce brand Barakat has launched bio-degradable packaging across its entire 

Continue Reading

October 27, 2022 | By RetailME Bureau
Pure Harvest CEO Sky Kurtz

UAE-based agritech start-up Pure Harvest Smart Farms has signed a Memorandum of 

Continue Reading

October 27, 2022 | By RetailME Bureau
Carrefour signed up as anchor tenant for Midtown Project

Carrefour, owned and operated by Majid Al Futtaim – Retail in the 

Continue Reading

October 27, 2022 | By RetailME Bureau
Grandiose Supermarket announces country-wide expansion plans

Grandiose Supermarket, part of Ghassan Aboud Group, has announced expansion plan in 

Continue Reading

October 26, 2022 | By Rupkatha B
100 years of Valrhona

The Valrhona journey began 100 years ago with a cocoa bean. Since 

Continue Reading

October 24, 2022 | By Justina Eitzinger
On-demand grocery delivery in 15 mins

Deliveroo UAE has announced the expansion of its rapid grocery delivery service 

Continue Reading

October 24, 2022 | By RetailME Bureau
Mariam bint Mohammed Almheiri, Minister of Climate Change and Environment

The Ministry of Climate Change and Environment (MOCCAE) revealed that the UAE 

Continue Reading

October 17, 2022 | By RetailME Bureau

Abu Dhabi-based leading supermarket chain Lulu Group has appointed investment bankers Moelis 

Continue Reading

October 13, 2022 | By RetailME Bureau




f
Download Images RetailME Magazine