This archive report was first published on 6 July 2020.
International Data Corporation (IDC) forecasts a decline in smart home device spending in the Middle East and Africa (MEA) region for the second half of 2020. The global technology research firm's Quarterly Smart Home Devices Tracker predicts a 6.0% year-on-year decline in spending, totaling $3.5 billion for the six-month period, down from $3.76 billion in H2 2019.
According to IDC, the COVID-19 pandemic has led to a shift in consumer spending priorities, with a greater focus on energy-saving devices and affordable entertainment options. "The stay-at-home measures introduced across the region have caused consumers to reprioritize their investments in smart home devices," says Isaac T. Ngatia, a senior research analyst at IDC. "We expect to see a greater focus on energy-saving devices, such as thermostats and smart bulbs, as end-users look to reduce their utility bills while remaining at home for prolonged periods. Set-top boxes and streaming sticks are also expected to see a surge in demand as consumers seek out affordable options to keep them entertained at home."
However, some previously high-value product categories are poised for sharp declines, including smart TVs and smart large appliances. Spending on smart TVs is forecast to drop 6.2% year on year in H2 2020, while smart large appliances are expected to decline due to their perceived high cost. A global shortage of panels for smart TVs is also contributing to supply issues.
Despite the decline in spending, IDC expects shipments to regain momentum next year, with spending on smart home devices across the region expected to increase 27.7% year on year in 2021.
