A thriving real estate market in the Middle East, Turkey, and Africa is driving up demand for smart home appliances

In the first quarter of 2023, the smart home device market in the Middle East, Türkiye, and Africa (META) region experienced a 1.4% increase in shipments, totalling 8.56 million units, as reported by the International Data Corporation (IDC) in its latest update on the Worldwide Quarterly Smart Home Device Tracker. The market exhibited a varied performance across different product categories. The growth in the market was predominantly driven by an increase in shipments of home monitoring/security and lighting devices, which saw an 8.9% rise compared to the previous quarter. Conversely, the entertainment category, encompassing devices like smart speakers and set-top boxes, witnessed a 9.2% decline during the same period.

The real estate market in the region, particularly in the UAE and other Gulf countries, remained robust, prompting end users to integrate smart devices into their homes, ranging from simple devices like smart bulbs to the widespread adoption of smart TVs. However, challenging economic conditions have led to an overall decline in spending, particularly on low-priority items. The META region's smart home device market is experiencing slow growth at present, in line with the broader trend in technology devices. Despite this, IDC anticipates an acceleration in market growth by the end of the year, driven by the establishment of smart home devices as integral components of smart living. Factors such as embedded AI capabilities, enhanced connectivity, regulatory policies, and developments in smart cities and sustainability are expected to further propel market momentum as the macroeconomic environment improves. Connectivity has played a pivotal role in driving the adoption of smart home devices in the META region, with over 60 of the 70 covered countries now boasting 4G connectivity and approximately 20 in the process of rolling out 5G.

The market ecosystem in the META region is expanding, contributing to increased awareness of smart home devices. These devices are now more widely accessible through various channels, including telecom operators incorporating them into home subscription packages. Noteworthy brands competing in the region include Amazon, Anker, Apple, BenQ, Bose, D-link, Eufy, Google, Honeywell, Huawei, IKEA, iRobot, LG Electronics, Nest, Ring, Samsung, TCL, TP-Link, Xiaomi, Yale, and others. IDC tracks multiple categories of smart home devices, such as smart appliances, home monitoring/security devices, lighting, speakers, thermostats, and video entertainment. Smart home devices are defined as network endpoints primarily designed for home use via network connectivity, utilizing protocols like Internet Protocol (IP), Bluetooth, ZigBee, Z-Wave, and Thread, among others.