Table of Contents
Executive Summary
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- The issues
- Difficulty communicating product benefits
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- Figure 1: Interest in remote access to home devices, December 2015
- Custom install a tough sell
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- Figure 2: Professional electronics installation, by household income, December 2015
- Home automation/security subscriptions pull consumers out of market
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- Figure 3: US home security subscriptions, 2012-15
- The opportunities
- Energy efficiency gateway to smart home
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- Figure 4: Attitudes to energy consumption, December 2015
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- Figure 5: Interest in energy consultations for the home, December 2015
- Nowhere for penetration to go except up
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- Figure 6: Current ownership of smart home hardware, December 2015
- Strong demand for heightening security, reducing power
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- Figure 7: Interest in acquisition of smart home hardware, December 2015
- What it means
The Market – What You Need to Know
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- Sales of connected devices for the home triple from 2013-15
- Number of households, spending on homes favors growth
- Installation, subscription services create challenges
Market Sales
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- Sales top $5 billion
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- Figure 8: Manufacturer sales and fan chart forecast of security and connected devices, at current prices, 2011-20
- Figure 9: Manufacturer sales of security and connected devices, at current prices, 2011-20
- Connected devices growing fast but security retains bulk of sales
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- Figure 10: Manufacturer sales of security and connected devices, at current prices, 2011-20
Market Perspective
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- Trouble communicating product benefits
- Remote access not for everyone
- Timing not of the essence
- Value of smart thermostats not self-evident to all
- DIY more attractive than professional installation
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- Figure 11: Professional electronics installation, by household income, December 2015
- Subscriptions may negatively impact hardware sales
- Retail competes with subscriptions for security hardware
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- Figure 12: US home security subscriptions, 2012-15
- Privacy, hacking, problematic for camera sales
Market Factors
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- Growth in US households
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- Figure 13: Number of US households, 2010-15
- Americans spending more on homes, gardens
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- Figure 14: Best- and worst-case forecast value sales of home and garden, at current prices, 2010-20
- Interest in reducing power bills
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- Figure 15: Attitudes to energy consumption, December 2015
- Pets, kids, elderly create interest in monitoring
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- Figure 16: Interest in monitoring the safety of home inhabitants, December 2015
- Households with children
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- Figure 17: Households with children, by age of householder, 2013
- Parents remain top audience for smart home products
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- Figure 18: Interest in entertaining, green products, and new technology, by parental status, December 2015
- Pet ownership
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- Figure 19: Types of pets living in household, February 2015
Key Players – What You Need to Know
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- Vast majority unaware of smart home brands
- Poor familiarity with protocols creates opportunities
- Larger tech firms likely to overtake early movers
What’s Working?
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- Four connectivity brands carry double-digit awareness
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- Figure 20: Awareness of smart home brands, December 2015
What’s Struggling?
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- Networking protocols: The audience is not listening
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- Figure 21: Awareness of communication protocols, December 2015
- Smart lighting brands jeopardized by low awareness
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- Figure 22: Awareness of smart lighting brands, December 2015
- Broad audience for efficient lighting
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- Figure 23: Light bulb purchasing, December 2015
What’s Next?
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- Tech titans aim to own the smart home
- Samsung
- Samsung smart fridge headed to stores
- Apple HomeKit
- Google Brillo and Weave
- Amazon Echo
- Microsoft and AllJoyn
- Retailers open smart home demos
- Wearables join forces with If This Then That (IFTTT)
The Consumer – What You Need to Know
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- Market still in early adoption
- Five products sought by more than a third of respondents
- Interest in home monitoring high
Motivations for Adoption
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- Home safety a concern for some consumers
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- Figure 24: Concern over the safety of the home, December 2015
- Younger adults more likely to worry
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- Figure 25: Concern over the safety of the home, December 2015
- Entertaining and going green
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- Figure 26: Interest in entertaining and green products, December 2015
- Young men want to impress others
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- Figure 27: Interest in entertaining and green products, by gender and age, December 2015
- “Wow” factor, green status can increase product premiums
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- Figure 28: Interest in entertaining and green products, by household income, December 2015
Remote Control of the Home
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- Phone as controller of choice
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- Figure 29: Interest in smart home convenience functions, December 2015
- Young women see convenience in remote access
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- Figure 30: Interest in smart home convenience functions, by gender and age, December 2015
- Interest in remote access high for categories with clear usage cases
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- Figure 31: Interest in remote access to home devices, December 2015
- Younger consumers more desirous of remote access
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- Figure 32: Interest in remote access to home devices, by age, December 2015
Interest in Home Safety and Monitoring
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- Security and monitoring hardware a leading smart home category
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- Figure 33: Interest in and ownership of home security/monitoring, December 2015
- Men 18-34 lead in interest in home security
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- Figure 34: Interest in home security/monitoring, by gender and age, December 2015
- Home monitoring appealing to Hispanic audience
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- Figure 35: Interest in home security/monitoring, by Hispanic origin, December 2015
- Urbanites seek security
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- Figure 36: Interest in and ownership of home security/monitoring devices, by area, December 2015
- Homeowners, urbanites seek to secure their home
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- Figure 37: Interest in smart home products – CHAID – Table output, December 2015
Interest in Smart Lighting and Thermostats
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- Smart lighting and thermostats ready for mainstream adoption
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- Figure 38: Interest in and ownership of smart thermostats and lighting, December 2015
- Urbanites ready to adopt products with panache
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- Figure 39: Interest in and ownership of smart thermostats and lighting, by area, December 2015
- Capitalizing on synergy across categories
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- Figure 40: Interest in smart lighting, by attitudes to home technology, December 2015
Consumer Highlight – Parents
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- Home security/monitoring carry elevated interest for parents
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- Figure 41: Interest in home security/monitoring, by parental status, December 2015
- Parents safe choice for creative materials
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- Figure 42: Interest in remote access to the home, by parental status, December 2015
- Parents keen on keyless entry
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- Figure 43: Interest and ownership in smart home products – CHAID – Tree output, December 2015
Interest in Multi-Room Audio
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- Half of adult consumers want multi-room audio
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- Figure 44: Interest in and ownership of multi-room audio systems, December 2015
- Young adults with high household income more receptive
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- Figure 45: Interest in multi-room audio, by age and income, December 2015
- New audio products may help young men impress guests
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- Figure 46: Interest in multi-room audio, by gender and age, December 2015
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Consumer qualitative research
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Additional Demographic Data
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- Presence of children in the home
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- Figure 47: Households, by presence of children, 2003-13
Appendix – CHAID Analysis Methodology
Appendix – Additional Consumer Data
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- Interest in smart thermostats and lighting
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- Figure 48: Interest in smart lighting and thermostats, by gender and age, December 2015
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- Figure 49: Interest in smart lighting and thermostats, by parental status, December 2015
- Interest in remote access
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- Figure 50: Interest in remote access to home devices, by gender and age, December 2015
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- Figure 51: Interest in smart home convenience functions, by parental status, December 2015
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- Figure 52: Interest in remote access to home devices, by home ownership, December 2015
- Interest in home security hardware
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- Figure 53: Interest in home security/monitoring, by homeownership, December 2015
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- Figure 54: Interest in home security/monitoring, by attitudes to home technology, December 2015
- Energy efficiency
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- Figure 55: Perception of current home energy efficiency, by household income, December 2015
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- Figure 56: Perception of current home energy efficiency, by age, December 2015
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- Figure 57: Perception of current home energy efficiency, by Hispanic origin, December 2015
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- Figure 58: Perception of current home energy efficiency, by home ownership, December 2015
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- Figure 59: Interest in room-by-room temperature control, by gender and age, December 2015
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