DIGITAL

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TRENDSSmarthomesinAustraliaCHAPTER

01OverviewNumberofinternetusersinAustraliafrom2012to2022(inmillions)NumberofinternetusersinAustralia2012-202225.523.623.522.822.321.721.421.519.517.521.120.42019.518.218.1201220132014201520162017201820192020202120223Description:AsofJanuary2022,thenumberofinternetusersinAustraliahadrisenbyapproximately5.5million,from18.1millionusersin2012toaround23.6millionusersin2022.ThenumberofinternetusersrosesteadilyoverthetimeperiodR.

eadmoreNote(s):Australia;January2012toJanuary2022Source(s):DataReportal;Hootsuite;WeAreSocialActiveinternetusersaspercentageofthetotalpopulationinAustraliafrom2015to2022InternetusersasapercentageofthetotalpopulationAustralia2015-2022100%91%89%89%88%88%88%87%87%90%80%70%60%50%40%30%20%10%0%201520162017201820192020202120224Description:TheshareoftheAustralianpopulationwhowereactiveinternetusershasremainedsteadysince2015andin2022,91percentwereactiveusers.Anincreaseinaccessibilityresultedinthenumberofinternetsubscribersincreasingyearonyearoverthelasteightyears,withmorethan22millionsubscribersin2022.ReadmoreNote(s):Australia;2015to2022Source(s):DataReportal;Hootsuite;WeAreSocialDistributionofinternetdatadownloadedinAustraliafromJunequarter2016to2021,byaccesstypeDistributionofdatadownloadedinAustralia2016-2021,byaccesstypeFixedlinebroadband9%Mobile/wirelessbroadband12%100%90%80%70%60%50%40%30%20%10%0%8%8%10%90%202011%89%202192%92%91%88%20162017201820195Description:IntheJunequarterof2021,mostofthedatadownloadedinAustraliawasthroughfixedlinebroadbandtechnologiesat89percent.Whiletheshareofinternetdatadownloadedwithmobileorwirelessaccesstechnologieshasincreasedoverthepastsixyears,itstillmakesupjust11percentofthedownloadvolumeinthecountry.ReadmoreNote(s):Australia;Junequarter2016to2021Source(s):ACCC;AustralianBureauofStatisticsTotalnumberofinternet-connecteddevicesinhouseholdsinAustraliain2020and2021withaforecastfor2025(inmillions)Numberofinternet-connecteddevicesinhouseholdsinAustralia2020-20254003573503002502041922001501005002020*2021*2025**6Description:In2021,anestimated204millioninternet-connecteddeviceswereinAustralianhouseholds.Thisnumberwasforecasttoreach357millionby2025.Accordingtothesource,thestrongestgrowingsegmentswereinternetofthingshomedevicesR.

eadmoreNote(s):Australia;2020and2021;*Estimate.**Forecast.

ReadmoreSource(s):TelsyteAveragenumberofinternet-connecteddevicesperhouseholdinAustraliain2020and2021withaforecastfor2025Averagenumberofinternet-connecteddevicesinhouseholdsinAustralia2020-20254033.8353025201510520.519.602020*2021**2025**7Description:In2021,therewasanaverageof20.5internet-connecteddevicesperhouseholdinAustralia.Thisnumberwasforecasttoreach33.8by2025.Accordingtothesource,thestrongestgrowingsegmentsweresmartsecurity,smartoutlets,andsmartgardendevices.ReadmoreNote(s):Australia;2020and2021;*Estimate.**Forecast.

ReadmoreSource(s):TelsyteAnnualvalueaddedgrowthofdigitalactivityinAustraliainfinancialyear2020,bysegmentAnnualvalueaddedgrowthofdigitalactivityinAustraliaFY2020,bysegmentGrowthrate5%-10%Hardware-5%0%10%15%20%25%30%SupportservicesE-commerce-RetailE-commerce-WholesaleTelecommunicationsSoftwareDigitalmedia8Description:Infinancialyear2020,thevalueaddedgrowththatcamefromthehardwaredigitalactivitysegmentinAustraliawasaround6.41percent.Acrossthedigitalactivitysector,e-commerceretailande-commercewholesaleexperiencedthelargestgrowthinvalueadded.

ReadmoreNote(s):Australia;financialyear2020Source(s):AustralianBureauofStatisticsTotalinternetaccessmarketvalueinAustraliafrom2015to2024(inbillionAustraliandollars)InternetaccessmarketvalueinAustralia2015-20244035.1434.31353025201510533.0631.7530.129.4829.629.6329.7629.150201520162017201820192020*2021*2022*2023*2024*9Description:In2019,thetotalinternetaccessmarketinAustraliawasvaluedatover29.7billionAustraliandollars.Itwasforecasttoreach35billionAustraliandollarsby2024.AconstantincreaseintheannualtotalinternetaccessmarketrevenueinAustraliawasexpected.ReadmoreNote(s):Australia;2015to2019;*Forecast.

ReadmoreSource(s):PwCCHAPTER

02SmarthomemarketSmarthomedeviceownershipinAustraliain2022SmarthomedeviceownershipinAustralia2022Shareofrespondents0%10%20%30%31%40%50%60%70%80%Yes,forelectricityandlighting(e.g.smartplugs,connectedlightbulbs)Yes,forbuildingsafety/security(e.g.connectedsmokedetectors,connectedcameras)29%Yes,forentertainment(e.g.Bluetoothspeakers,SmartTVs,streamingdevices)Yes,smartspeakerswithanintegratedvirtualassistant(e.g.AmazonEcho)Yes,smartappliances(e.g.robotvacuums,smartmicrowaves)Yes,forenergymanagement(e.g.connectedthermostats,temperaturesensors)IdonotownanySmartHomedevices79%23%26%21%16%Other2%11Description:ThedisplayeddataonsmarthomedeviceownershipshowsresultsoftheGlobalConsumerSurveyconductedinAustraliain2022.Some31percentofrespondentsansweredthequestion"DoyouownSmartHomedevices-i.e.devicesthatyoucancontrolviaasmartphone/aninternetconnection?"with"Yes,forelectricityandlighting(e.g.smartplugs,connectedlightbulbs)".ReadmoreNote(s):Australia;fourwavesfrom7Apr2021to17Mar2022;2031respondents;18-64yearsSource(s):GlobalConsumerSurvey(GCS)NumberofactivesmarthomesinAustraliafrom2017to2026(inmillions)Australia:numberofactivesmarthomes2017-202697.818765432106.625.614.754.033.412.892.452.071.76201720182019202020212022202320242025202612Description:TheusercountoftheSmartHomeindustryinAustraliaisforecasttocontinuouslyincreaseby3.8millionusers(+94.41%)withinthenextyears.Accordingtothisforecastin2026,theusercountwillhaveincreasedforninthconsecutiveyearsto7.81millionusers.Notably,theusercountoftheSmartHomeindustrywascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):Australia;2017to2026Source(s):DigitalMarketOutlookPenetrationrateofthesmarthomemarketinAustraliain2026,bysegmentAustralia:penetrationrateofsmarthomesin2026,bysegment60%55.25%47.95%50%40%30%20%10%0%45.27%44.9%44.65%26.61%Comfort&LightingControl&ConnectivityEnergyManagementSecuritySmartAppliancesHomeEntertainment13Description:In2026,thepenetrationrateintheSmartHomemarketinComfort&Lightingisforecastedtoreach55.2percent,makingComfort&Lightingthesegmentwiththelargestpenetrationrateofthedifferentsegments,followedbyControl&Connectivity(48percent),EnergyManagement(45percent),andSecurity(45percent).Incontrast,HomeEntertainmentistrailingtherankingwith26.6percent,recordingadifferenceof28.6percenttoComfort&Lighting.Read

moreNote(s):Australia;2026Source(s):DigitalMarketOutlookSmarthomemanagementdeviceownershipbybrandinAustraliain2022SmarthomemanagementdeviceownershipbybrandinAustralia2022Shareofrespondents0%5%10%15%20%25%30%35%40%SamsungGoogleNestPhilips39%35%25%BrilliantRing12%12%TP-Link11%10%EcobeeADT9%FrontpointXiaomi/MiSensiboSengledSimpliSafe9%9%7%5%5%14Description:ThedisplayeddataonsmarthomemanagementdeviceownershipbybrandshowsresultsoftheGlobalConsumerSurveyconductedinAustraliain2022.Some39percentofrespondentsansweredthequestion"WhichoftheseprovidersdoyouownSmartHomedevicesfrom?"with"Samsung".ReadmoreNote(s):Australia;fourwavesfrom7Apr2021to17Mar2022;736respondents;18-64years;respondentswhoownSmartHomedevicesforcomfortandlighting,buildingsafety/securityorenergymanagementSource(s):

GlobalConsumerSurvey(GCS)ShareofsmarthomeusersinAustraliain2021,byagegroupAustralia:smarthomeusershare2021,byage30%27.8%24.1%25%20%15%10%5%18.5%16.2%13.4%0%18-24years25-34years35-44years45-54years55-64years15Description:Consumersagedbetween25and34yearsoldrepresentedthelargestshareofsmarthomeusersinAustraliain2020at27.8percent.Inthatsameyear,consumersaged55-64yearsoldmadeupthesmallestshareofusersatonly13.4percentR.

eadmoreNote(s):AustraliaSource(s):DigitalMarketOutlookImportantsmarthomerelatedpropertyfeaturesforrelocatingconsumersinAustraliain2020ImportantsmarthomerelatedpropertyfeaturesforconsumersinAustralia2020Shareofrespondents20%

30%0%10%40%50%60%70%67%80%NationalBroadbandNetwork(nbn)connectivityEnoughpowerplugsforallappliancesWi-Fifriendlybuilding64%45%Smartsecuritysystems38%EnergymonitoringandcontrolsystemsBuilt-insmarthomesolutionsPet-friendlydesigns34%33%28%Electricvehiclechargingstations23%16Description:Inasurveyconductedin2020,around67percentofrespondentsinAustraliastatedthatitwasimportantfortheirnewhometobeconnectedtotheNationalBroadbandNetwork(nbn).Inthesamesurvey,33percentofrespondentsstatedthatbuilt-insmarthomesolutionswereimportant.

ReadmoreNote(s):Australia;2020;1070respondentsSource(s):TelsyteCHAPTER

03SmartspeakermarketSmartspeakerownershipbybrandinAustraliain2022SmartspeakerownershipbybrandinAustralia2022Shareofrespondents0%5%10%15%20%25%30%35%40%45%GoogleHome(GoogleAssistant)AmazonEcho(Alexa)AppleHomePod(Siri)GoogleNest(GoogleAssistant)Bose44%30%26%26%16%Denon10%Bowers&WilkinsFormationDuoHarmanKardonJBLLINK-Series8%8%8%Sonos5%Marshall4%4%UltimateEarsNaimMu-so3%18Description:ThedisplayeddataonsmartspeakerownershipbybrandshowsresultsoftheGlobalConsumerSurveyconductedinAustraliain2022.Some44percentofrespondentsansweredthequestion"Whichsmartspeakerwithanintegratedvirtualassistantdoyouown?"with"GoogleHome(GoogleAssistant)".

ReadmoreNote(s):Australia;fourwavesfrom7Apr2021to17Mar2022;457respondents;18-64years;respondentswhoownasmartspeakerSource(s):

GlobalConsumerSurvey(GCS)DistributionofthesmartspeakermarketinAustraliain2021,byoperatorDistributionofthesmartspeakermarketinAustralia2021,byoperatorOther13%Apple5%Google57%Amazon25%19Description:In2021,GoogledominatedthesmartspeakermarketinAustraliawitha57percentshare.SmartspeakerswithGoogleNestallowtheusertoconnecttoGoogleAssistantviavoicecontrolinordertoplaymusic,readoutnews,andcontrolsmarthomedevicesamongotherfunctions.

ReadmoreNote(s):Australia;asofDecember2021Source(s):TelsyteTopsmartspeakerrequestsbysmartspeakerownersinAustraliain2021,byactivitySmartspeakerrequestsAustralia2021,byactivityShareofrespondents30%0%10%20%40%50%60%70%PlaymusicGettheweather65%56%AnswerageneralquestionCheckthetime53%50%Setatimer/alarmGetthenews46%41%20Description:AsurveyconductedinAustraliain2021onsmartaudioreportedthat65percentofrespondentsrequestedtheirsmartspeakerplaymusicinatypicalweek.Thatsamesurveyalsoshowedthatabout41percentoftherespondentsrequestednewsfromtheirsmartspeaker.ReadmoreNote(s):Australia;April19andMay5,2021;5,000respondents;18yearsandolder;requestsinatypicalweekSource(s):MumbrellaWhensmartspeakerswereusedbytheirownersinAustraliain2021,byactivityWhensmartspeakerswereusedAustralia2021,byactivityShareofrespondents30%

40%0%10%20%50%60%70%67%80%DoingchoresCooking63%Entertaining57%56%GettingreadyforthedayBrowsingtheinternetWorkingfromhomeWatchingTV50%47%41%41%WorkingoutGettingreadyforbed40%21Description:AsurveyconductedinAustraliain2021onsmartaudioreportedthat67percentofrespondentsusedtheirsmartspeakersinatypicalweekwhendoingchores.Thatsamesurveyalsoshowedthatabout40percentoftherespondentssaidtheyusedtheirsmartspeakerswhentheyweregettingreadytogotobed.

ReadmoreNote(s):Australia;April19andMay5,2021;5,000respondents;18yearsandolderSource(s):MumbrellaShareofvoicecommandsusedforsmartspeakersinAustraliain2021SmartspeakervoicecommandsusageAustralia2021Shareofrespondents0%5%10%15%20%25%30%35%Haveinteractedwithabrand,productorserviceHaveaddedanitemtotheircarttoreviewlaterforpurchaseHaveorderedtoanewproduct33%31%28%Havere-orderedanitem27%22Description:AsurveyconductedinAustraliain2021onsmartaudioreportedthat33percentofrespondentshadinteractedwithbrands,products,orservicesthroughasmartspeakervoiceassistant.Thatsamesurveyalsoshowedthatabout27percentoftherespondentsusedtheirsmartspeakervoiceassistanceforre-orderingitems.

ReadmoreNote(s):Australia;April19andMay5,2021;5,000respondents;18yearsandolderSource(s):MumbrellaCHAPTER

04SmarthomerevenueforecastsRevenueofthesmarthomemarketinAustraliafrom2017to2026(inbillionU.S.dollars)Australia:revenueofthesmarthomemarket2017-20265.04.534.54.144.03.53.02.52.01.51.00.50.03.763.383.032.832.021.791.511.19201720182019202020212022202320242025202624Description:TherevenueoftheSmartHomeindustryinAustraliaisforecasttocontinuouslyincreaseby1.5billionU.S.dollars(+49.52%)withinthenextyears.Afterninthconsecutiveincreasingyears,therevenueisestimatedtoreach4.53billionU.S.dollarsandthereforeanewpeakin2026.Notably,therevenueoftheSmartHomeindustrywascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):Australia;2017to2026Source(s):DigitalMarketOutlookRevenueofthesmarthomeappliancesmarketinAustraliafrom2017to2026(inmillionU.S.dollars)Australia:revenueofthesmarthomeappliancesmarket2017-20262,0001,748.651,8001,6001,4001,2001,0008001,584.21,425.461,267.781,130.171,048.16734.69671.56576.67600449.52017400200020182019202020212022202320242025202625Description:TherevenueoftheSmartAppliancesindustryinAustraliaisforecasttocontinuouslyincreaseby618.5millionU.S.dollars(+54.73%)withinthenextyears.Accordingtothisforecastin2026,therevenuewillhaveincreasedforninthconsecutiveyearsto1748.65millionU.S.dollars.Notably,therevenueoftheSmartAppliancesindustrywascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):Australia;2017to2026Source(s):DigitalMarketOutlookRevenueofthesmarthomesecuritymarketinAustraliafrom2017to2026(inmillionU.S.dollars)Australia:revenueofthesmarthomesecuritymarket2017-2026700652.28602.296005004003002001000553.14502.94458.19437.18320.04281.23238.88183.26201720182019202020212022202320242025202626Description:TherevenueoftheSecurityindustryinAustraliaisforecasttocontinuouslyincreaseby194.1millionU.S.dollars(+42.36%)withinthenextyears.Afterninthconsecutiveincreasingyears,therevenueisestimatedtoreach652.28millionU.S.dollarsandthereforeanewpeakin2026.Notably,therevenueoftheSecurityindustrywascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):Australia;2017to2026Source(s):DigitalMarketOutlookRevenueofthesmarthomeentertainmentmarketinAustraliafrom2017to2026(inmillionU.S.dollars)Australia:revenueofthesmarthomeentertainmentmarket2017-2026400360.11354.17348.49341.61335.9235030025020015010050333.01262.31233.73192.99163.980201720182019202020212022202320242025202627Description:TherevenueoftheHomeEntertainmentindustryinAustraliaisforecasttocontinuouslyincreaseby27.1millionU.S.dollars(+8.14%)withinthenextyears.Therefore,therevenueisestimatedtoamountto360.11millionU.S.dollarsin2026.Notably,therevenueoftheHomeEntertainmentindustrywascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):Australia;2017to2026Source(s):DigitalMarketOutlookRevenueofthesmarthomecomfortandlightingmarketinAustraliafrom2017to2026(inmillionU.S.dollars)Australia:revenueofthesmarthomecomfortandlightingmarket2017-2026450413.1840035030025020015010050374.32336.64299.05263.77241.93171.08152.4126.9295.392017020182019202020212022202320242025202628Description:TherevenueoftheComfort&LightingindustryinAustraliaisforecasttocontinuouslyincreaseby149.4millionU.S.dollars(+56.64%)withinthenextyears.Afterninthconsecutiveincreasingyears,therevenueisestimatedtoreach413.18millionU.S.dollarsandthereforeanewpeakin2026.Notably,therevenueoftheComfort&Lightingindustrywascontinuouslyincreasingoverthepastyears.ReadmoreNote(s):Australia;2017to2