Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- The issues
- Cost chief obstacle
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- Figure 1: Negative characteristics associated with smart home tech, April 2018
- DIY a hindrance to subscription sales
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- Figure 2: Subscription and interest in subscription to home security and automation services, April 2018
- Limited reasons to monitor
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- Figure 3: Motivations for home monitoring, April 2018
- The opportunities
- Market far from saturated
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- Figure 4: Ownership and interest in purchase – Convenience products, April 2018
- Figure 5: Ownership and interest in purchase – Security products, April 2018
- Convenience products hit their stride
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- Figure 6: Annual sales gains by segment, 2014-18
- Emphasizing disaster prevention
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- Figure 7: Positive characteristics associated with smart home tech, April 2018
- What it means
The Market – What You Need to Know
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- “Works with” promotes growth
- Security falls from lead
- More limited potential for alarms, in-home monitoring
Market Size
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- Familiarity and integration propel sales 2016-18
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- Figure 8: US manufacturer sales of smart home devices, at current pricing, 2013-18
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- Figure 9: Smart home devices, incremental sales gains by segment, 2014-18
Market Breakdown
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- Connected home carries growth
- Installation weighs in on purchases
- Robots gain functions
- Pets are people too
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- Figure 10: Total US manufacturer sales of smart home devices, by segment, at current prices, 2016 and 2018
- Figure 11: Total US manufacturer sales of smart home devices, by segment, at current prices, 2015-18
Market Factors
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- Pets and independent seniors loom large
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- Figure 12: Motivations for home monitoring, April 2018
- Neighborhood networks increase awareness of crime
Key Players – What You Need to Know
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- Familiarity beats expertise
- Specialists less trusted
- Buyouts offer specialists deeper pockets
What’s Working?
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- Largest, oldest brands most trusted
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- Figure 13: Smart home brands with high levels of trust, April 2018
- Smartphones as interface
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- Figure 14: Hardware used for home control/monitoring, April 2018
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- Figure 15: Cox Homelife direct mail marketing, May 2017
- Figure 16: CPI Security systems direct mail marketing, June-July 2017
What’s Struggling?
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- Specialists less well-regarded
- Bumpy rode ahead for Logitech
- Netgear spins off Arlo
- Ecobee hamstrung by marketing spend
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- Figure 17: Smart home brands with low levels of trust, April 2018
What’s Next?
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- Nest and Ring grow brand names
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- Figure 18: Trust in smart home brands (Nest and Ring), April 2018
- Voice control
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- Figure 19: Interfaces used for home control/monitoring, April 2018
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- Figure 20: Use of voice-centered hardware and interfaces to control smart home, by age, April 2018
The Consumer – What You Need to Know
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- Majority of adults interested in both product segments
- Most products carry potential sales to a third of all households
- Young men top target
- Moving away from home security
- Subscriptions appeal to a more limited base
Ownership and Interest in Purchases
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- Market far from saturated
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- Figure 21: Ownership and interest in purchase – Convenience products, April 2018
- Fire top safety concern
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- Figure 22: Ownership and interest in purchase – Safety products, April 2018
- Near universal interest among young men who own homes
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- Figure 23: Ownership and interest in convenience products, CHAID tree output, April 2018
- Figure 24: Ownership and interest in safety products, CHAID tree output, April 2018
Security and Automation Services
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- DIY solutions put pressure on subscriptions
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- Figure 25: Subscription and interest in subscription, April 2018
- Young men more likely to be interested in adding service
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- Figure 26: Subscription and interest in subscription, by gender and age, April 2018
- Gains to be made in middle-income groups
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- Figure 27: Subscription and interest in subscription, by household income, April 2018
- Treating the concerns of parents lightly
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- Figure 28: Subscription and interest in subscription, by parental status, April 2018
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- Figure 29: Xfinity home email marketing, March 2017
- Focusing on larger markets
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- Figure 30: Subscription and interest in subscription, by area of residence, April 2018
- Seeking security switchers among homeowners
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- Figure 31: Subscription and interest in subscription, home security, and automation, by homeownership, April 2018
Positive and Negative Associations
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- Home safety and cool tech top positives
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- Figure 32: Positive characteristics associated with smart home tech, April 2018
- Young men see cool tech
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- Figure 33: Positive characteristics associated with smart home tech, by gender, April 2018
- Cost tops list of negative associations
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- Figure 34: Negative characteristics associated with smart home tech, April 2018
- Figure 35: Negative characteristics associated with smart home tech, by homeownership, April 2018
- Young men less likely to view expense as problematic
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- Figure 36: Negative characteristics associated with smart home tech, by gender and age, April 2018
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- CHAID analysis methodology
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 37: US manufacturer sales of smart home devices, at inflation-adjusted prices, 2013-18
- Figure 38: US manufacturer sales of selected products, at current prices, 2016 and 2018
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Appendix – The Consumer
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- Figure 39: Positive characteristics associated with smart home tech, by household income, April 2018
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- Figure 40: Positive characteristics associated with smart home tech, by race/Hispanic origin, April 2018
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