Table of Contents
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on smart homes
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the smart home category, May 2021
- Opportunities and challenges
- Home entertainment products could be the gateway into other connected devices
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- Figure 2: Smart home device ownership, March 2020-April 2021
- Security is an essential component of brand reputation and marketing messaging
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- Figure 3: Important smart home device factors, April 2021
- Remote control is the leading theme for smart home technology
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- Figure 4: Personal smart home characteristics, March 2020-April 2021
- Consumers have positive sentiments toward smart home technology and benefits
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- Figure 5: Attitudes toward smart homes – Benefits/automation, April 2021
The Market – Key Takeaways
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- Home ownership dips following COVID-19 pandemic
- Smart home device ownership trending upwards
- Global computer chip shortage will apply demand and pricing pressure
- Remote work will drive further smart home integration
Market Indicators – State of Home
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- COVID-19 boosts US home ownership rates – but maybe only temporarily
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- Figure 6: US home ownership rates, by quarter, January 2000-January 2021
- Figure 7: National Association of Home Builders single family home starts and housing market index, January 2005-March 2021
- Younger consumers bear brunt of COVID-19 economic impact
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- Figure 8: Unemployment rate, by age, January 2020-March 2021
- Impact of COVID-19 on smart homes
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- Figure 9: Short-, medium- and long-term impact of COVID-19 on the smart home category, May 2021
Smart Home Device Ownership
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- Smart device ownership increases to nearly eight in 10 households
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- Figure 10: Smart home device ownership, March 2020-April 2021
- Connected devices expected to continue growth past 2021
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- Figure 11: Smart home device ownership, March 2019, March 2020 and April 2021
Market Factors
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- Global computer chip shortage will raise prices on smart home devices
- Younger consumers will drive the smart home market
- Remote work means a continuation of more time spent at home
- Wi-fi 6 allows for more connected devices
- Sustainability messaging could attract new consumers
Companies and Brands – Key Takeaways
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- Apple looks to revamp its smart home products
- Amazon’s “Certified for Humans” badge offers confidence on its marketplace
- Google’s partnership with ADT combines tech know-how with leading security service
- LG aims at the uber wealthy with LG Signature line
- SimpliSafe outspends competition on podcast ads
Competitive Strategies
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- Apple
- Apple HomePod discontinued after years of struggling to find buyers
- Apple looks to revamp its approach to the smart home market
- Amazon
- Amazon moves to make the smart home simple for consumers
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- Figure 12: Amazon.com “Certified for Humans” badge, April 2021
- Google partners with ADT for smart home security
- Google service outage leads to negative press on its smart home devices
- LG
- LG abandons smartphone category to focus on the smart home and IoT devices
- LG Signature line goes for the uber wealthy
- Samsung
- “A Better Normal” – Samsung’s presentation at CES 2021 focused on the smart home
- Samsung teases home robot at CES 2021
Market Opportunities
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- TVs are the center of the home
- Home movers and renovators are great opportunity to sell smart appliances
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- Figure 13: Home behaviors, April 2021
- Figure 14: Breakdown of smart home devices owned, by home behaviors, April 2021
- SimpliSafe spends big on podcasting
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- Figure 15: Online ad recall from the past seven days – Podcasts, by gender and age, and age and income, June 2020
- Figure 16: Estimated podcast spend, by home security providers, January 2019-March 2021
The Consumer – Key Takeaways
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- Growing percentage of self-described smart homes
- Ownership rates increase across majority of smart home devices
- Younger consumers will drive growth in smart home category
- Security is the primary concern and feature for smart home devices
- Consumers feel smart home features are becoming more affordable
- COVID-19 shifts priorities to the home for consumers
Smart Home Incidence
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- Increasing number of consumers consider their home a “smart home”
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- Figure 17: Personal home perception, March 2020-April 2021
- Age, wealth and gender drive smart home participation
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- Figure 18: Personal home perception, by gender, age and household income, April 2021
- Remote and voice controls drive participation in smart home category
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- Figure 19: Smart home characteristics – Among those who say they have a smart home, March 2020-April 2021
- Figure 20: Smart home characteristics – Among those who say they do not have a smart home, March 2020-April 2021
Smart Home Device Ownership
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- Increased ownership rates across majority of smart home devices
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- Figure 21: Smart home device ownership, March 2020-April 2021
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- Figure 22: Smart home device ownership, by number of smart home devices owned, April 2021
- Vast majority of men 18-44 with at least $75K household income own a smart home device
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- Figure 23: Smart home device ownership, by gender, age and household income, April 2021
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- Figure 24: Breakdown of number of smart home devices owned, by gender and age, April 2021
- Smart thermostats can also draw consumers into smart home category
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- Figure 25: Smart home devices owned, by number of smart home devices owned, April 2021
- Hybrid commuters show highest smart home device ownership rates
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- Figure 26: Number of smart home devices owned, by work commute, April 2021
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- Figure 27: Smart home devices owned, by work commute, April 2021
Smart Home Device Purchase Interest
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- Smart lights lead purchase intent among non-owners
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- Figure 28: Smart home device purchase intent, April 2021
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- Figure 29: Breakdown of number of smart home devices interested in owning, April 2021
- Figure 30: Number of smart home devices interested in owning, by smart light owners, April 2021
- Consumers with no interest in smart home devices significantly older
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- Figure 31: Age breakdown, by consumers who own or are interested in owning a smart home device, April 2021
Important Smart Home Device Factors
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- Security is the top concern for consumers shopping for smart home products
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- Figure 32: Important smart home device factors, April 2021
- Younger consumers value the aesthetics while older consumers value support
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- Figure 33: Important smart home device factors, by age, April 2021
- Positive online reviews can increase participation among Asians
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- Figure 34: Important smart home device factors, by race and Hispanic origin, April 2021
- Security is paramount when it comes to smart home devices
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- Figure 35: TURF Analysis – Desired smart features, April 2021
- Methodology
Home Behaviors
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- Only half of consumers have reliable internet throughout their entire home
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- Figure 36: Home behaviors, April 2021
- Home changes draw interest in high-end smart home devices
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- Figure 37: Smart home device ownership and interest in owning, by home behaviors, April 2021
Smart Home Characteristics
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- Association with high cost drops year over year
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- Figure 38: Smart home characteristics, March 2020-April 2021
- Participation in smart home category changes perceptions
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- Figure 39: Smart home characteristics, by personal home perception, April 2021
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- Figure 40: Smart home characteristics, by ownership or interest in a smart home device, April 2021
- Black consumers more likely to associate smart homes with surveillance
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- Figure 41: Smart home characteristics, by race and Hispanic origin, April 2021
Attitudes toward Smart Home Technology
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- COVID-19 has elevated the importance of the home for consumers
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- Figure 42: Attitudes toward smart homes – Sanitation/COVID-19, April 2021
- Smart home tech widely considered beneficial
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- Figure 43: Attitudes toward smart homes – Benefits/automation, April 2021
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- Figure 44: Attitudes toward smart home technology – Benefits/automation, by number of smart home devices owned, April 2021
- Smart home category slightly improves perception of affordability and cost benefits
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- Figure 45: Attitudes toward smart homes – Cost, March 2020-April 2021
- Concerns about hacking are far greater than installation/setup
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- Figure 46: Attitudes toward smart homes – Hacking/use/installation, April 2021
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- Figure 47: Attitudes toward smart homes – Use/installation, March 2020-April 2021
- Figure 48: Attitudes toward smart homes – Use/installation, by number of smart home products owned, April 2021
Consumer Segmentation – Attitudes toward Smart Home Technology
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- Figure 49: Smart home technology consumer segments, April 2021
- Smart Home Power Users (24%)
- Characteristics
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- Figure 50: Profile of Smart Home Power Users, April 2021
- Opportunities
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- Figure 51: Breakdown of number of smart home devices owned, by consumer segments of attitudes toward smart home technology, April 2021
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- Figure 52: Breakdown of consumer segments, by work commutes, April 2021
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- Figure 53: Home behaviors, by consumer segments of attitudes toward smart home technology, April 2021
- Trusting Users (27%)
- Characteristics
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- Figure 54: Profile of Trusting Users, April 2021
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- Figure 55: Smart home devices owned, by consumer segments of attitudes toward smart home technology, April 2021
- Opportunities
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- Figure 56: Smart home device purchase intent, by consumer segments of attitudes toward smart home technology, April 2021
- Non-users (22%)
- Characteristics
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- Figure 57: Profile of Non-users, April 2021
- Opportunities
- Smart Home Beginners (27%)
- Characteristics
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- Figure 58: Profile of Smart Home Beginners, April 2021
- Opportunities
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Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Marketing creative
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – TURF Analysis
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- Figure 59: Table – TURF Analysis – Desired smart features, April 2021
- TURF methodology
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