Table of Contents
Executive Summary
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- The market
- Growth in interest in voice control
- Privacy breaches could impact sales of smart home devices
- Zigbee Alliance starts connected home partnership with Google, Apple and Amazon
- Impact of COVID-19 on the connected home
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- Figure 1: Expected impact of COVID-19 on the connected home, short, medium and long term, 19 May 2020
- Companies and Brands
- Google releases Nest Hub and Nest Hub Max
- Facebook launches redesigned Portal, Portal TV and Portal Mini
- Amazon announces third-generation Echo range
- Amazon Echo maintains dominance of voice-controlled speaker market
- The consumer
- Growth in voice-controlled speakers
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- Figure 2: Ownership of connected home devices, March 2020
- Smart security ownership stays level despite consumer intent
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- Figure 3: Interest in purchasing smart home devices, March 2020
- Over four in 10 smart speaker owners keep their devices muted
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- Figure 4: Privacy and shopping with a voice-controlled speaker and ownership of speakers with a display, March 2020
- Over eight in 10 smart security owners feel more secure
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- Figure 5: Feeling more secure due to smart security devices, March 2020
- Consumers also show interest in monitoring deliveries into their home
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- Figure 6: Buying smart security bundles and monitoring deliveries into the home, March 2020
- Privacy and cost are barriers to adoption of smart home products
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- Figure 7: Factors restricting smart home purchases, March 2020
- What we think
Impact of COVID-19 on the Connected Home Sector
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- Short, medium and long-term impact
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- Figure 8: Expected impact of COVID-19 on connected home, short, medium and long-term, 30 June 2020
- Opportunities and Threats
- Developing use cases for mindfulness apps and smart speakers
- Facebook Portal ideally placed to capitalise on the video chat boom
- Smart speaker growth could provide opportunities to boost voice commerce
- Using tracking features to monitor device usage
- Deeper integration between voice assistants and other smart home systems
- Impact on the market
- COVID-19 to drive bigger gap between voice-controlled speakers and other smart home items
- Shifts in consumer behaviour
- Move to ecommerce should not have a significant effect on smart home purchases
- Impact on consumer segments
- Younger generations could hold off on purchases
- Older generations could choose now to buy smart displays
- How a COVID-19 recession will reshape the market
- Consumers’ concerns over their finances continue
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- Figure 9: Changes in financial situation since the start of the COVID-19 outbreak, 21-28 May 2020
- Impact on the marketing mix
- Manufacturers offer discounts to increase smart home adoption
- Facebook could offer an entry level smart speaker to compete with Amazon and Google
- Highlighting the use cases for voice-controlled speakers during lockdown
- COVID-19: Market context
Issues and Insights
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- Developing mindfulness programs for voice-controlled speakers during the COVID-19 pandemic
- The facts
- The implications
- Potential growth in smart delivery boxes for the home
- The facts
- The implications
The Market – What You Need to Know
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- Growth in interest in voice control
- Privacy breaches likely to reduce sales of smart home devices
- Zigbee Alliance starts connected home partnership with Google, Apple and Amazon
Market Drivers
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- Growth in interest in voice control
- Privacy breaches could impact sales of smart home devices
- Xiaomi and Google devices under scrutiny
- KeyWe smart lock
- Zigbee Alliance starts connected home partnership with Google, Apple and Amazon
Companies and Brands – What You Need to Know
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- Google releases Nest Hub and Nest Hub Max
- Facebook launches redesigned Portal, Portal TV and Portal Mini
- Amazon announces third-generation Echo range
- Ring unveils Ring Alarm, Indoor Cam and Stick Up Cam
- IKEA and Sonos partnership continues with bookshelf and lamp speakers
- Amazon Echo maintains dominance of voice-controlled speaker market
Launch Activity and Innovation
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- Google releases Nest Hub and Nest Hub Max
- Facebook launches redesigned Portal with new Portal TV and Portal Mini
- Amazon announces third-generation Echo range
- Ring unveils Ring Alarm, Indoor Cam and Stick Up Cam
- IKEA and Sonos partnership continues with bookshelf and lamp speakers
- Google unveils Google Wi-Fi successor in Nest Wi-Fi
- Master Lock releases biometric padlock for garages and sheds
- Hive releases Radiator Valve to manage heating in different rooms
Advertising and Marketing Activity
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- Facebook invests heavily in advertising Portal line-up in 2019
- Apple’s advertising spend drops
- Ring leads spend for smart security
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- Figure 10: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by category, 2017-19
- Figure 11: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, Top 10, 2019
- Figure 12: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by share, 2019
- Nielsen Ad Intel coverage
Brand Ownership – Voice-controlled Speakers
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- Amazon Echo maintains dominance of voice-controlled speaker market
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- Figure 13: Type of voice-controlled speaker owned, March 2020
The Consumer – What You Need to Know
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- Growth in voice-controlled speakers
- Smart security ownership stays level despite consumer intent
- Half of consumers with voice-controlled speakers open to using it for shopping
- Over four in 10 smart speaker owners keep their devices muted
- Over eight in 10 smart security owners feel more secure
- Consumers also show interest in monitoring deliveries into their home
- Privacy and cost are key barriers to adoption of smart home products
- Almost half of smart home owners save money on utility bills
Ownership of Smart Home Devices
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- Growth continues for voice-controlled speakers
- Smart security ownership stays level despite consumer intent
- Smart fridges, vacuum cleaners and washing machines remain niche
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- Figure 14: Ownership of connected home devices, March 2020
- Over a third of consumers with a voice-controlled speaker received it from someone else
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- Figure 15: Buying or receiving a voice-controlled speaker, March 2020
Interest in Buying Smart Home Products
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- Consumers still most interested in smart security
- Interest in other smart home items stays level but potential for smart plugs
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- Figure 16: Interest in purchasing smart home devices, March 2020
Voice-controlled Speaker Behaviours
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- Half of consumers with voice-controlled speakers open to using them for shopping
- Voice assistants proactively asking to re-order an item could be appealing
- Over four in 10 voice-controlled speaker owners keep their devices muted
- A quarter of voice-controlled speakers have a touchscreen display
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- Figure 17: Privacy and shopping with a voice-controlled speaker and ownership of speakers with a display, March 2020
Purchase Motivators for Voice-controlled Speakers
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- Consumers value ease of use in voice-controlled speakers
- Portal’s cross-platform support likely to be appealing to switchers
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- Figure 18: Most important factors when purchasing a voice-controlled speaker, March 2020
Attitudes towards Smart Security
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- Over eight in 10 smart security owners feel more secure
- The majority of people interested in smart security prefer bundles to individual products
- Consumers also show interest in monitoring deliveries into their home
- Security cameras and delivery boxes
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- Figure 19: Feeling more secure due to smart security devices, March 2020
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- Figure 20: Buying smart security bundles and monitoring deliveries into the home, March 2020
Concerns over Smart Home Devices
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- Privacy and cost are key barriers to adoption of smart home products
- Some also concerned about having too many devices
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- Figure 21: Factors restricting smart home purchases, March 2020
- Smart home owners share concern over data privacy
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- Figure 22: Attitudes towards privacy and data for smart home, March 2020
Attitudes towards Smart Home Products
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- Around half of people see smart home devices as a gimmick
- Making life easier is most likely to be the appeal of smart home products
- Extending the personalised recommendations for voice-controlled speakers
- Offering discounts to older consumers
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- Figure 23: Appeal of smart home devices, March 2020
- Almost half of smart home owners have saved money on utility bills
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- Figure 24: Saving money on utility bills with smart home devices, March 2020
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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