Only 19 per cent of households are likely to purchase or use smart connected home technology over the next five years.
According to an EY survey of 2,500 households in the UK, smart heating is the connected home technology that consumers are most likely to purchase or use over the next five years at 26 per cent, with 53 per cent unlikely to purchase or use smart heating over the next five years.
Other technologies are smart lighting (23 per cent likely, 57 per cent unlikely), connected car (18 per cent likely, 61 per cent unlikely), smart watch (18 per cent likely, 66 per cent unlikely), smart fridge (15 per cent likely, 69 per cent unlikely), and smart oven (14 per cent likely, 71 per cent unlikely).
The Smart Home Market is forecast to be worth 121.73 Billion USD by 2022, up from $47 Billion in 2015.
Adrian Baschnonga, EY Lead Telecommunications Analyst said: “While ‘connected’ lifestyles are very much the norm, the majority of consumers have yet to be convinced of the value of smart home products. Awareness levels remain low, and a fragmented market of competing solutions is hindering the development of simple offerings that resonate with households.”
Despite the general lack of consumer enthusiasm for smart home products, 34 per cent of households are said to be ‘very interested’ in the new technology and gadgets, up 4 per cent since the last EY survey in 2013.
In addition, the report said some household demographics already have a pronounced interest in smart home products. For example, over half of the young, affluent and tech-savvy ‘Digital Devotee’ segment from the survey are likely to use or buy smart heating in the next five years.
Baschnonga said it is therefore important for companies investing in smart home technologies to put the consumer at the “heart of everything they” do and provide practical solutions to everyday needs.
Understanding the diverse needs of the modern home and refining smart home products in the light of customer feedback will be vital to accelerate adoption rates.
Baschnonga added: The smart home is at an early stage of growth. Improved dialogue with customers is essential if service providers are to translate interest from early adopters into mass market demand.
“Rethinking approaches to packaging, pricing and product installation can all help create a more convenient experience that will widen the appeal of smart home technology in the long-term.”
Facebook founder and CEO Mark Zuckerberg recently released a video of his own Smart Home and his visions for the future. Please see video below.