European smart home market records the best 4th quarter ever. For 2020, a sharp drop in the sector is expected

In 2019, the smart home products market in Europe recorded its best fourth quarter ever, but COVID-19 is expected to significantly affect the coming months and the first half of 2020. Data are from IDC, which estimates that in the fourth quarter of last year, almost 39.9 million units were placed on the market. However, for the second quarter of this year the forecast is totally different, with the consultant believing that, for the first time, the market will experience a fall.

The data for the last quarter of 2019 means an increase of 20.4% over the same period in 2018. As for last year, counting the 12 months, IDC speaks of a 20% market growth, with almost 107 million units made available.

As for the numbers for this year, the scenario changes completely. Although IDC believes that smart home appliances have the potential for continued growth, the forecast is for a decline in demand, especially in the first half of 2020. "Future developments will depend on the extent of restrictions in each country due to COVID-19", explains Jan Prenosil.

According to Antonio Arantes, in the first half of 2020 the interest in products in this sector will decrease, and, for the first time, the market should register a drop in the second quarter of this year in relation to the same period. As for the most affected products, IDC highlights the category of video entertainment, especially smart TVs.

As the consultant observes, teleworking has changed consumers' priorities, with the factories themselves also facing shortages of components. "Consumers are spending more money on equipment that improves the capabilities of their home offices, such as monitors, laptops and cameras," explains Antonio Arantes. But the cancellation of major sports competitions, such as the European Football Championship or the Olympic Games, also helps to explain the lower demand.

Smart home market in the last quarter of 2019. Amazon who places more products on the market

As has been the case in previous quarters, smart speakers were the best-selling product on Black Friday and during Christmas. Antonio Arantes, senior research analyst at the consultancy, also guarantees that, with the new models launched in the last quarter of the year, Amazon continued to gain importance in the market, supported by the good performance of intelligent speakers and digital media adapters, such as video converters or According to the data, it was precisely Amazon that placed the most products on the market in the fourth quarter of 2019, representing 19.4% of the total. In the top 3 are still Google and Samsung.

Top 5 companies that put the most smart home equipment in the fourth quarter of 2019 Source: IDC

In particular, IDC highlights the market growth in Central and Eastern Europe in 2019. Compared to 2018, there was an increase of 53.5%. Jan Prenosil, senior research analyst for smart home equipment, justifies this growth with the gradual transition to the new digital terrestrial video transmission standard, Digital Video Broadcasting – Terrestrial.

The highlights of IDC for the last quarter of 2019:

Video entertainment equipmentIn the fourth quarter of 2019, almost 21.1 million units of video entertainment equipment, such as Smart TVs, were placed on the market, an increase of 10.9% over the same period last year. IDC believes that this product category will reach 81.4 million units made available in 2024.