Table of Contents
Overview
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- What you need to know
- Products covered in this report
Executive Summary
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- The market
- Digital assistants battle for a presence in the home
- Creating a more consistent user experience for third-party products
- Voice-controlled smart speakers diversify, at the top end …
- … and at the budget end of the market
- The smart home presents an opportunity for insurers
- Companies and brands
- Amazon Echo leads share of voice-controlled speakers
- HomePod shows initial promise
- Google Home Max aims to compete on sound quality
- Echo Plus aims to provide a complete home hub
- Echo Show arrives in the UK
- Hive and British Gas leads advertising of home automation
- The consumer
- Speakers the primary device for a connected home …
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- Figure 1: Household ownership of smart Wi-Fi connected devices, April 2018
- … and these devices are key for connected home expansion
- Multiple ownership will continue to grow
- Smart thermostats boosted by partnerships with energy firms
- Consumers open to smarter home security
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- Figure 2: Interest in smart Wi-Fi connected devices, April 2018
- Smart security cameras have widespread consumer appeal …
- … but people are still resistant to the idea of connected locks
- Voice-controlled speakers pique interest of families
- Long upgrade cycle of home appliances limits interest …
- Few have actually tried out connected home devices
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- Figure 3: Ways consumers have heard about smart home devices, April 2018
- Playing music is the key draw for voice-controlled speakers
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- Figure 4: Regularity of activities performed with voice-controlled speakers, April 2018
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- Figure 5: Functions that consumers interested in voice-controlled speakers are most likely to use, April 2018
- There are still problems to overcome when it comes to smart speakers
- General digital assistant functions are becoming more familiar
- Retailers push to integrate voice commerce
- Consumers think the technology needs time to mature
- Perceived complexity may limit adoption
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- Figure 6: Consumer attitudes towards connected home products, April 2018
- Trust in listening devices
- Internet connectivity brings vulnerability to the home
- Bundling devices may be the key to increasing adoption
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- Figure 7: Consumer attitudes to connected home devices, April 2018.
- What we think
Issues and Insights
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- Can digital assistants become ubiquitous in daily life?
- The facts
- The implications
- Is the connected home suitable for the whole family?
- The facts
- The implications
- The potential for voice to disrupt the grocery market
- The facts
- The implications
- Encouraging regular purchasing
The Market – What You Need to Know
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- Digital assistants battle for a presence in the home
- Creating a more consistent user experience for third-party products
- Voice-controlled smart speakers diversify, at the top end …
- … and at the budget end of the market
- Facebook’s issue with data privacy has wide-reaching consequences
- The smart home presents an opportunity for insurers
Market Drivers
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- Digital assistants battle for a presence in the home
- Creating a more consistent user experience for third-party products
- Voice-controlled smart speakers diversify, at the top end …
- … and at the budget market
- Amazon uses its position to promote its own products
- Facebook’s issue with data privacy has wide-reaching consequences
- GDPR could help improve trust
- The smart home presents an opportunity for insurers
- Consumers are open to the idea of linking smart devices to insurance
Companies and Brands – What You Need to Know
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- Amazon Echo leads share of voice-controlled speakers
- HomePod shows initial promise
- Bixby faces a difficult fight against the momentum of established digital assistants
- Competing standards may stifle competition
- Google Home Max aims to compete on sound quality
- Smart doorbell makers Ring acquired by Amazon
- Echo Show arrives in the UK
Market Share
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- Amazon Echo leads share of voice-controlled speakers
- HomePod shows initial promise
- Bixby faces a difficult fight against the momentum of established digital assistants
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- Figure 8: Brand of voice-controlled speakers in household, April 2018
- Competing standards may stifle competition
- Home hubs can link some devices …
- … but continued fragmentation will limit mass-market adoption
Launch Activity and Innovation
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- Apple’s HomePod enters the market as a premium speaker
- Google’s connected home focuses on its digital assistant
- Home Max aims to compete on sound quality
- Home Mini promoted in doughnut truck pop-ups
- Google Home partners with Netflix’s Lost in Space
- Amazon looks to expand smart home devices
- Echo Plus aims to provide a complete home hub
- Smart doorbell makers Ring acquired by Amazon
- Echo Show arrives in the UK
- Alexa rewards children who say please
- Hive improves on its connected home products
- LG’s SmartThinQ combines connected devices with AI-powered learning
Advertising and Marketing Activity
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- Amazon leads smart speaker advertising spend
- ASA rules against a complaint about ads waking Alexa
- Digital and search supplements high-profile TV spots
- Hive and British Gas leads advertising of home automation
- Amazon new sponsors of the Great British Bake Off
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- Figure 9: Total above-the line, online display and direct mail advertising expenditure on connected home devices, by advertiser, March 2017- February 2018
- Figure 10: Total above-the line, online display and direct mail advertising expenditure on connected home devices, by device category, March 2017- February 2018
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Speakers the primary device for a connected home …
- … and these devices are key for connected home expansion
- Smart thermostats boosted by partnerships with energy firms
- Consumers open to smarter home security
- Few have actually tried out connected home devices
- Playing music is the key draw for voice-controlled speakers
- Retailers push to integrate voice commerce
- Consumers think the technology needs time to mature
- Perceived complexity may limit adoption
- Trust in listening devices
Ownership of Connected Home Devices
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- Speakers the primary device for a connected home …
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- Figure 11: Household ownership of smart Wi-Fi connected devices, April 2018
- … and these devices are key for connected home expansion
- Multiple ownership will continue to grow
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- Figure 12: Household ownership of smart Wi-Fi connected devices, by number of connected devices owned, April 2018
- Smart thermostats boosted by partnerships with energy firms
Interest in Connected Home Devices
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- Consumers open to smarter home security
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- Figure 13: Interest in smart Wi-Fi connected devices, April 2018
- Smart security cameras have widespread consumer appeal …
- … but people are still resistant to the idea of connected locks
- Voice-controlled speakers pique interest of families
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- Figure 14: Interest in buying a smart voice-controlled speaker, by parental status, April 2018
- Long upgrade cycle of home appliances limits interest …
- …while connected fridge/freezers lack a clear USP
Discovering Connected Home Devices
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- TV ads most effective for spreading connected technologies …
- Few have actually tried out connected home devices
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- Figure 15: Ways consumers have heard about smart home devices, April 2018
Digital Assistant Use
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- Playing music is the key draw for voice-controlled speakers
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- Figure 16: Regularity of activities performed with voice-controlled speakers, April 2018
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- Figure 17: Functions that consumers interested in voice-controlled speakers are most likely to use, April 2018
- There are still problems to overcome when it comes to smart speakers
- General digital assistant functions
- Controlling connected home devices is not a priority
- Retailers push to integrate voice commerce
- Consumers interested in speakerphone use, but functionality varies by device
Attitudes towards Connected Home Technology
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- Consumers think the technology needs time to mature
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- Figure 18: Consumer attitudes towards connected home products, April 2018
- Perceived complexity may limit adoption
- Know your audience: from Receptive Optimists to outright Rejectors
- Receptive Optimists
- Rejectors
- Cautious Optimists
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- Figure 19: Target groups, April 2018
Facilitators of and Barriers to Connected Technology
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- Trust in listening devices
- Internet connectivity brings vulnerability to the home
- Bundling devices may be the key to increasing adoption
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- Figure 20: Consumer attitudes towards connected home devices, April 2018.
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
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