Control & Connectivity - Indonesia

Revenue in the Control & Connectivity market is projected to reach US$79.8m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 13.76%, resulting in a projected market volume of US$152.1m by 2029.
In the Control & Connectivity market, the number of active households is expected to amount to 30.6m users by 2029.
Household penetration will be 12.4% in 2024 and is expected to hit 50.1% by 2029.
The average revenue per installed Smart Home currently is expected to amount to US$11.00.

Definition:

The Control & Connectivity market includes the essential equipment (connected and remote-control devices) and services that are part of an intelligent home network. The segment includes smart speakers (Amazon Echo, Google Home, etc.), central control and communication units (hub/gateway), programmable control buttons (e.g. wall switches and adjustable dials), and smart plugs for the control of non-smart devices.

Additional Information:

The market comprises revenue, average revenue per smart home, number of smart homes so as the household penetration rate by smart home, and key players. Figures are generated through both online and offline sales channels and include exclusive spending by consumers (B2C). Market leaders include Amazon and Google, renowned for their innovation, brand recognition, and expansive distribution channels within their respective categories. For more information on the data displayed, use the info button right next to the boxes.

Gateways/hubs that are capable of controlling devices of all segments (e.g., Smart Home Zigbee 3.0 Gateway Smik)
Smart speakers with a primary focus on control and digital assistants (e.g., Sonoro STREAM, Bose Smart Speaker 500)
Control buttons and smart plugs/sockets (e.g., TP-Link KE100 KIT, Aoycocr Wi-Fi Smart Socket)

Connected home appliances (see Smart Appliances)
Multiroom speaker systems with a primary focus on entertainment (see Home Entertainment)
Smartphones and tablets
B2B/C2C sales of any kind (e.g., to hotels or office buildings)

The Control & Connectivity market in Indonesia is experiencing significant growth and development due to various factors.

Customer preferences: Customers in Indonesia are increasingly demanding control and connectivity solutions to enhance their daily lives and improve efficiency. With the rise of smart homes and smart cities, there is a growing need for technologies that enable remote control and monitoring of various devices and systems. Additionally, businesses in industries such as manufacturing and logistics are seeking connectivity solutions to optimize their operations and improve productivity.

Trends in the market: One major trend in the Control & Connectivity market in Indonesia is the adoption of Internet of Things (IoT) technologies. IoT enables devices to connect and communicate with each other, allowing for seamless control and automation. This trend is driven by the increasing availability of affordable IoT devices and the growing awareness of their benefits. As a result, there is a surge in demand for IoT-enabled control and connectivity solutions in Indonesia. Another trend is the integration of artificial intelligence (AI) and machine learning (ML) technologies into control and connectivity systems. AI and ML algorithms can analyze large amounts of data collected from connected devices, enabling intelligent decision-making and automation. This trend is particularly relevant in industries such as manufacturing, where predictive maintenance and real-time monitoring are crucial for optimizing production processes.

Local special circumstances: Indonesia is the fourth most populous country in the world, with a large and rapidly growing middle class. This demographic shift is driving the demand for control and connectivity solutions in various sectors, including residential, commercial, and industrial. Additionally, the government of Indonesia has been actively promoting the development of smart cities, which further fuels the demand for control and connectivity technologies.

Underlying macroeconomic factors: The Indonesian economy has been experiencing steady growth, supported by factors such as increasing domestic consumption, infrastructure development, and foreign investment. This economic growth creates a favorable environment for the Control & Connectivity market, as businesses and consumers have more disposable income to invest in control and connectivity solutions. Furthermore, the government's focus on digital transformation and technology adoption further stimulates the market by providing incentives and support for companies operating in the sector. In conclusion, the Control & Connectivity market in Indonesia is witnessing significant growth and development driven by customer preferences for enhanced control and connectivity, the adoption of IoT and AI technologies, the government's promotion of smart cities, and the overall positive macroeconomic environment. These factors create a conducive market landscape for companies operating in the control and connectivity sector in Indonesia.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

Smart homes use connected devices and appliances to perform actions, tasks, and automated routines to save money, time, and energy. They are the ongoing revolution of the humble home appliance mixed with AI, robotics, and improvement in IoT technologies. AI in particular, speeding up response times and working as an automation bridge between homeowner and home is already having an impact.