Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Smart home not prioritized in spending
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- Figure 1: Manufacturer sales of smart home hardware, at current prices, 2012-17
- Known brands more trusted than specialists
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- Figure 2: Top brands trusted to make smart hardware, October 2016
- Even most popular products desired by minority
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- Figure 3: Interest in smart home hardware, October 2016
- The opportunities
- Seeing green
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- Figure 4: Saving energy as a moral good and interest in greening home, by location of home, October 2016
- Safety moves indoors
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- Figure 5: Interest in indoor monitoring among caretakers of pets, elderly, and children, October 2016
- Pets, kids propel new interest in security service
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- Figure 6: Subscription service drivers and usage – CHAID – Tree output, October 2016
- Breakout products can shape market
- What it means
The Market – What You Need to Know
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- Security reigns, but connectivity drives growth
- Room for growth inside broader household spending
- Indoor cameras and greening the home
Market Size and Forecast
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- Sales clear $7 billion in 2016
- Individual products shape market
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- Figure 7: Manufacturer sales of smart home hardware, at current prices, 2012-17
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- Figure 8: Manufacturer sales of smart home hardware, at current prices, 2012-17
Market Breakdown
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- Security remains industry bulwark
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- Figure 9: Manufacturer sales of smart home hardware, by segment, 2016
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- Figure 10: Manufacturer sales of smart home hardware, by segment, 2012-17
Market Perspective
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- Total spend on homes dwarfs smart home hardware
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- Figure 11: Best- and worst-case forecast value sales of home and garden, at current prices, 2010-20
Market Factors
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- Pets, kids, elderly create interest in monitoring
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- Figure 12: Interest in indoor monitoring among caretakers of pets, elderly, and children, October 2016
- Pet owners
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- Figure 13: Type of pet owned, June 2016
- Households with children
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- Figure 14: Interest in smart home hardware by parental status and age of children, October 2016
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- Figure 15: Households, by presence and ages of own children, 2016
- Elderly population growing
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- Figure 16: Population by age, 2012-22
- Rising electricity costs restrained
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- Figure 17: Cost per KwH in US, 2010-15
- Saving energy as a moral principle
- In their own words:
- Cultural divide in impression of conservation as a moral issue
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- Figure 18: Energy conservation and interest in greening the home, by location of home, October 2016
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- Figure 19: Energy conservation and interest in greening the home, by level of education, October 2016
Key Players – What You Need to Know
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- Samsung, Apple, LG most trusted brands
- Newer brand names face uphill battle
- Growth ahead for DIY security, indoor monitoring, voice interfaces
What’s Working?
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- Mobile hardware brands most trusted
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- Figure 20: Top brands trusted to make smart hardware, October 2016
- ADT continues dominance in security
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- Figure 21: Home security service provider, October 2016
What’s Struggling?
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- Tough choices in creating new brand names
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- Figure 22: Second-tier of brands trusted to make smart hardware, October 2016
What’s Next?
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- Model smart homes
- DIY installation
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- Figure 23: DIY vs professional installation for home security and automation, October 2016
- Indoor monitoring
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- Figure 24: Lifestyle factors contributing to the need for indoor monitoring, October 2016
- Voice control via digital assistants
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- Figure 25: Interest in voice control for TVs and stereos, October 2016
- Humanizing digital assistants
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- Figure 26: Gatebox holographic digital assistant, December 2016
The Consumer – What You Need to Know
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- Remote monitoring for lights, cameras, thermostats
- Younger adults see more value in remote monitoring
- Smart homes not for everyone
- Parents top target
- Security service a discretionary purchase
- Older, higher-income groups keen on efficiency
Interest in Remote Access
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- Limited demand for remote access
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- Figure 27: Interest in remote access to home appliances, October 2016
- Age clearest determinant of interest in remote monitoring
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- Figure 28: Interest in remote access to home appliances, by age, October 2016
- Figure 29: Interest in remote access to entertainment products and major appliances, by age, October 2016
- Differences by race/ethnicity limited
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- Figure 30: Interest in remote access to home appliances, by race/Hispanic origin, October 2016
- Highest-income households least interested in remote access
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- Figure 31: Interest in remote access to home appliances, by household income, October 2016
- Parents keen on controlling appliances from phones, computers
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- Figure 32: Interest in remote access to home appliances, by parental status, October 2016
Interest in Owning Smart Home Products
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- Security, thermostats have greatest potential
- In their own words:
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- Figure 33: Interest in smart home products, October 2016
- Parents top target
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- Figure 34: Interest in smart home products, by age, October 2016
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- Figure 35: Interest in smart home products, by parental status and age of children, October 2016
- Hispanics, urbanites show elevated interest
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- Figure 36: Interest in smart home products, by Hispanic origin, October 2016
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- Figure 37: Interest in smart home products, by location of home, October 2016
Attitudes to Energy-efficient Products
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- Efficiency worth premiums
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- Figure 38: Attitudes to energy-efficient products, October 2016
- Older ages see more value in energy-efficiency
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- Figure 39: Attitudes to energy-efficient products, by age, October 2016
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- Figure 40: Attitudes to energy-efficient products, by race and Hispanic origin, October 2016
- Experience matters
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- Figure 41: Attitudes to energy-efficient products, by household income, October 2016
Home Security Subscription
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- Service linked more to income than safety
- Potential for growth in middle-income groups
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- Figure 42: Home ownership and subscription to a home security service, by household income, October 2016
- Homes with pets and kids best option for expansion
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- Figure 43: Home security subscription service drivers and usage – CHAID – Table output, October 2016
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- Figure 44: Subscription service drivers and usage – CHAID – Tree output, October 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Qualitative research
- Consumer survey data
- CHAID analysis methodology
- Abbreviations and terms
- Abbreviations
Appendix – The Market
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- Figure 45: Manufacturer sales of smart home hardware, at inflation-adjusted prices, 2012-17
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