Indonesia Smart Display Market Outlook to 2030

Indonesia Smart Display Market Overview

• Indonesia Smart Display Market, valued at USD 216 million in 2023, is primarily driven by the rising demand for connected devices and smart home solutions. Increasing awareness among consumers about the convenience and functionality of smart displays has contributed to market growth.
• Key players in the Indonesia Smart Display Market include Google, Amazon, Samsung, and Xiaomi. Local brands like Polytron and Mito are also making significant inroads by offering competitive products tailored to the Indonesian market. These companies are investing heavily in marketing and distribution to enhance their market presence and capture a larger share of the growing smart display demand.
• In 2024, Lenovo gets into a strategic collaboration with Alat, subsidiary of PIF; signs agreement for US$2 billion in zero coupon convertible bonds. The collaboration is aimed towards accelerating Lenovos ongoing transformation, further enhance global presence, and increase geographic diversification of global manufacturing footprint.
• Jakarta, Surabaya, and Bandung dominate the smart display market in Indonesia, in 2023. These cities are hubs of technological advancement, with a high concentration of tech-savvy consumers and businesses that drive demand for smart home devices. Jakarta, being the capital, also benefits from higher disposable incomes and a greater propensity to adopt new technologies.

Indonesia Smart Display Market Segmentation

The Indonesia Smart Display Market can be segmented based on several factors:

By Product Type: Indonesia Smart Display Market is segmented by product type into smart speakers with display, smart mirrors, and smart signage. In 2023, smart speakers with display dominated the market. This dominance is due to their versatile use cases in home automation, entertainment, and information retrieval. Products like the Google Nest Hub and Amazon Echo Show have become popular due to their integration with other smart home devices and user-friendly interfaces.

By End-User: Indonesia Smart Display Market is segmented by end-user into residential, commercial, and public sectors. The residential sector accounted for the largest share in 2023, driven by the increasing adoption of smart home devices by urban households. The convenience offered by smart displays in controlling various smart home devices and providing real-time information has made them a popular choice among homeowners.

By Region: Indonesia Smart Display Market is segmented by region into Java, Sumatra, Kalimantan, and others. Java held the largest market share in 2023 due to its dense population, higher rate of urbanization, and greater availability of smart devices. Major cities like Jakarta and Bandung, located in Java, are key drivers of demand in the region, accounting for a significant proportion of smart display sales.

Indonesia Smart Display Market Competitive Landscape

• Polytron: In 2024, Polytron signed a Memorandum of Understanding (MOU) with Delta Electronics Indonesia. This collaboration aims to leverage Delta's expertise in power management and IoT-based solutions to enhance Polytron's offerings in the Indonesian market. The partnership focuses on developing products related to electric vehicle (EV) charging, smart city devices, and other energy-efficient solutions.
• Samsung: In 2024, Samsung officially released the highly anticipated Galaxy S24 series in Indonesia, which includes the Galaxy S24, S24+, and S24 Ultra. The pre-order period began on February 6, 2024, and offers various features powered by Galaxy AI, such as Chat Assist and Live Translate. The Galaxy S24 Ultra starts at IDR 21,999,000, while the S24+ and S24 are priced at USD 933.27 to 1133.27 respectively.

Indonesia Smart Display Industry Analysis

Indonesia Smart Display Market Growth Drivers:

• Increasing Smart Home Adoption Rates: The integration of smart displays into these systems has been a key driver, with devices like smart mirrors and smart speakers becoming integral to home automation. Smart mirrors equipped with artificial intelligence can perform various functions, such as displaying weather updates, news, and local time, while also allowing user interaction through voice commands. This indicates a growing trend towards multifunctionality in smart displays
• Rising Investments in Digital Infrastructure: Indonesia's digital infrastructure investments have surged significantly. Indonesia's internet penetration rate reached 78.2% in 2023, up from 64.8% in 2018, indicating a marked increase in the number of internet users over the past five years. Indonesian government has loosened investment barriers for data centers, offering tax exemptions of up to 100% for investments, facilitating the seamless operation of smart displays.
• Growing Retail and Commercial Sector Adoption: The commercial sector in Indonesia is increasingly adopting smart displays, particularly in retail environments. In 2023, 40% of all e-commerce payments in Indonesia were made via e-wallets, showcasing a shift towards digital solutions that complement the use of smart displays in retail environments, facilitating seamless transactions.

Indonesia Smart Display Market Challenges:

• Limited Awareness and Technical Knowledge: Many Indonesian consumers still lack awareness and understanding of smart display technologies and their potential benefits. People are unaware of the functionalities offered by smart displays or did not understand how to integrate these devices into their existing home setups. This lack of awareness and technical knowledge hinders the market's growth, as consumers are hesitant to invest in technology they do not fully understand.
• Data Privacy and Security Concerns: Data privacy and security remain significant concerns for Indonesian consumers when adopting smart technology. This has led to increased scrutiny and reluctance among potential buyers stating that data security issues deter them from purchasing smart home devices, including smart displays.

Indonesia Smart Display Market Government Initiatives

• Indonesias Smart City Initiative: Indonesia's Smart City Initiative is a comprehensive program aimed at transforming urban areas through digital technology and sustainable practices. Launched in 2017, the initiative seeks to address the challenges of rapid urbanization, with a goal of establishing 100 smart cities by 2045, in line with the country's vision of becoming a "smart nation" by leveraging technology to enhance governance, economy, living standards, and environmental sustainability.
• Digital Economy Framework: In 2023, the Digital Economy Framework (DEFA) in Indonesia is part of a broader strategy aimed at enhancing the country's digital economy by 2030. This framework focuses on expanding digital infrastructure, fostering innovation, and promoting the adoption of digital technologies, including smart displays. The framework allocates IDR 500 billion annually for developing smart city initiatives across Indonesia, integrating smart displays in public spaces to improve information dissemination and citizen engagement.

Indonesia Smart Display Future Market Outlook

Indonesia Smart Display Market is poised for substantial growth over the next five years, driven by increasing consumer demand for smart home technologies and government initiatives promoting digital transformation. The market is expected to expand significantly as more consumers adopt smart displays for their multifunctional capabilities, including entertainment, home automation, and information retrieval.

Future Trends

• Expansion of Smart City Projects: The Indonesian government will accelerate the development of smart city projects across major urban centers, integrating smart displays into public infrastructure to enhance information dissemination and public services. These initiatives will drive the demand for smart displays in public spaces, creating new opportunities for market players.
• Advancements in Voice Recognition and AI Integration The integration of advanced voice recognition technologies and artificial intelligence (AI) into smart displays is expected to become more sophisticated, providing users with enhanced functionalities and personalized experiences. This trend will attract tech-savvy consumers and increase the adoption of smart displays in both residential and commercial settings.