The home technology sector is seeing the introduction of new products everyday, from smart refrigerators to home security cameras. But the market may not be as saturated as it appears. According to a recently survey published this week by Gartner, Inc., only about 10% of households in the U.S., the U.K. and Australia currently have connected home solutions, specifically a set of devices that work together across one platform. While popular with early adopters, connected products are having a hard time permeating the mass consumer market.
The survey, which gathered responses from 10,000 online respondents in the U.S., the U.K. and Australia during the second half of 2016, defined “smart home solutions” as “a set of devices and services that are connected to each other and to the internet and can automatically respond to preset rules, be remotely accessed and managed by mobile apps or a browser, and send alerts or messages to the user(s).”
When asked about their feelings and preferences toward connected products and appliances, three-quarters of respondents indicated they are happy to manually set temperature and lighting controls compared to only one-quarter who showed interest in having devices anticipate needs in the home. For example, the Nest Learning Thermostat can learn a homeowner’s temperature preference, and then creates an auto-schedule of temperatures they like and save energy. In fact, the thermostat recently received the first EPA ENERGY STAR certification for a smart thermostat for the energy and cost-saving benefits associated with the thermostat’s technology.
Fifty-eight percent of respondents showed a preference for separate, independent, stand-alone devices instead of one smart home system, though homeowners also see the value of having one app or platform that integrates all the connected products in the home. More than half of the respondents leaned toward the preference of one app integrating connected home devices and services, while 58% showed interest in hardware and services that are certified by a specific brand.
Increased home security remains a top motivation for purchasing a smart product or system. The survey found that alarm systems have nearly double the adoption rates at 18% of newer connected home solutions such as home monitoring (11%), home automation or energy management (9%), and health and wellness management (11%). Not to mention adoption rates were 5% to 6% greater in the U.S., where they were first marketed.
However, home alarms often come with a monthly subscription fee, which may deter many consumers. Fifty-nine percent of households in the U.S. with a home monitoring solution indicate they do pay a monthly fee. But solution providers may find monetizing connected services challenging, as that does leave close to half of consumers that are getting smart security for free. The challenge is even greater in the U.K., where 58% of households with home automation get their services free of charge.
“Messaging needs to be focused on the real value proposition that the complete connected home ecosystem provides, encompassing devices, service and experience,” said Jessica Ekholm, research director at Gartner. “The emphasis needs to be on how the connected home can helps solve daily tasks rather than just being a novelty collection of devices and apps.”
