Table of Contents
Executive Summary
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- Overview
- The issues
- Fewer than half of consumers have adopted smart home devices
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- Figure 1: Number of smart home devices owned, March 2019
- A better case needs to be made for smart speakers
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- Figure 2: Reasons for not considering a smart speaker, March 2019
- Amazon dominates smart speaker market
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- Figure 3: Smart speaker brands owned, March 2019
- The opportunities
- Smart home brands must target younger homeowners
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- Figure 4: Smart home device ownership, by generation and homeownership, March 2019
- Protecting the home and saving money are top motivators for smart home devices
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- Figure 5: Smart home areas of interest, by total and smart home device owners, March 2019
- Opportunities for more smart speaker interactions among younger consumers
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- Figure 6: Smart speaker usage, by generation, March 2019
- What it means
The Market – What You Need to Know
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- Homeownership rate may be starting to reverse after years of decline
- More consumers are buying home security systems
- Smart home environment is extremely fragmented and overlapping
Market Breakdown
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- Where’s home?
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- Figure 7: US homeownership rates, Q1 2004-Q4 2018
- Millennials playing catch up on homeownership
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- Figure 8: Primary residence, by generation, March 2019
- Figure 9: Generations, by plans to buy and move homes within the next year, March 2019
- Smart device ownership remains minimal
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- Figure 10: Smart home products owned, March 2019
- Home security system ownership on the rise
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- Figure 11: Home security ownership, 2012-18
- Figure 12: Home security purchasing, 2012-18
Market Factors
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- 5G connectivity on its way
- Zigbee vs Z-Wave vs Wi-Fi
- Porch pirates spur home security interest
The Smart Home – What You Need to Know
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- The smart home foundation is set by the big tech companies
- Smart speakers are the hub of the smart home
- Plug and play home security
- Alarm.com home security software takes on bespoke home security
- Samsung’s Bixby late to the party
Smart Home Key Players
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- Digital assistants and smart home platforms
- Amazon – Alexa
- Apple – HomeKit
- Bosch & Siemens – Home Connect
- Google – Google Assistant
- LG – SmartThinQ
- Samsung – Bixby & SmartThings
- Smart speakers
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- Figure 13: Smart speaker ownership and interest, March 2019
- Amazon
- Apple
- JBL
- Samsung
- Sonos
- Smart home monitoring & security
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- Figure 14: Smart home security and climate control device ownership and interest, March 2019
- Nest
- Ring
- ecobee
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- Figure 15: Amazon acquisition email, December 2018
- SimpliSafe
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- Figure 16: SimpliSafe acquisition email, April 2019
- SmartThings – ADT
- Honeywell
- Smart home appliances
- Microwaves and microwave ovens
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- Figure 17: Smart microwave ownership and interest, March 2019
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- Figure 18: AmazonBasics Microwave promotional email, December 2018
- Figure 19: Williams and Sonoma Easter acquisition email, April 2019
- Refrigerators
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- Figure 20: Smart refrigerator ownership and interest, March 2019
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- Figure 21: Samsung Family Hub acquisition email, June 2017
- Oven ranges
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- Figure 22: Smart oven ownership and interest, March 2019
What’s Working?
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- Amazon Echo leading smart speaker in the market
- Smarthome.com a neutral third-party site to help consumers
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- Figure 23: Smarthome.com acquisition email, March 2019
- Figure 24: Smarthome.com acquisition email volume, by month, Oct 2017-Mar 2019
- Figure 25: Monthly online ad spend for Smarthome.com, January 2018-April 2019
- Alarm.com product suite producing consistent revenue
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- Figure 26: Alarm.com total revenue, in millions, 2015-18
- Figure 27: Coastal Protection direct mail, January 2016
What’s Struggling?
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- Non-tech company smart speakers
- Samsung’s Bixby a little late to the scene
- Apple HomeKit’s connectivity limits compatible devices
- Amazon discontinues Dash button
What’s Next?
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- Home health monitoring for seniors
- J&S automated smart windows
- Self-disinfecting kitchens and bathrooms
- eCommerce security solutions
The Consumer – What You Need to Know
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- Young Millennial homeowners are prime target for smart home devices
- Brands need to counter Amazon’s suite of Echo products
- Address interest in home improvement, maintenance, and property management
- Target Home Futurists for style- and luxury-oriented smart home products
Smart Device Ownership and Interest
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- Smart home category still relatively new for consumers
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- Figure 28: Smart home device ownership and interest, March 2019
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- Figure 29: Number of smart home devices owned, March 2019
- Homeownership key to usage (outside of smart speakers)
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- Figure 30: Smart home device ownership, by homeownership, March 2019
- Younger Millennials are engaged participants in smart home products
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- Figure 31: Smart home device ownership, by generation, March 2019
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- Figure 32: Smart home device ownership, by Millennials and homeownership, March 2019
- Figure 33: Primary residence, by generation, March 2019
- Smart home usage is primarily among the young and wealthy
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- Figure 34: Smart home device ownership, by age and household income, March 2019
- Smart speakers are the entry point of the smart home journey
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- Figure 35: Smart home devices owned, by number of smart home devices owned, March 2019
Smart Speaker Brand Ownership and Consideration
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- Amazon dominates
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- Figure 36: Smart speaker brands owned, March 2019
- Google’s higher consideration rate gives it momentum
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- Figure 37: Smart speaker brands considered, March 2019
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- Figure 38: Smart speaker brands considered, by smart speaker brands owned, March 2019
- Non-Amazon smart speakers more prevalent with higher device ownership
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- Figure 39: Smart speaker brands owned, by number of smart home devices owned, March 2019
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- Figure 40: Smart speaker brands considered, by number of smart home devices owned, March 2019
Reasons for Not Considering a Smart Speaker
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- Half of non-owners say they have no use for a smart speaker
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- Figure 41: Reasons for not considering a smart speaker, March2 019
- Women more concerned about privacy compared to men
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- Figure 42: Reasons for not considering a smart speaker – Privacy concerns, by gender, March 2019
Smart Home – Areas of Interest
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- Security and climate control top consumer smart home areas
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- Figure 43: Smart home areas of interest, March 2019
- TURF Analysis
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- Figure 44: TURF Analysis of smart home areas of interest, March 2019
- Young homeowners show the most interest across all areas
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- Figure 45: Smart home areas of interest, by homeowners and renters, March 2019
- Figure 46: Smart home areas of interest, by Millennials and homeownership, March 2019
- Mom has eyes in the back of her head, in the hallway, the living room…
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- Figure 47: Smart home areas of interest, by gender and parental status, March 2019
- Figure 48: Smart home areas of interest, by presence and age of children in the household, March 2019
- Mom: “Jimmy clean your room!”...Jimmy: “Alexa clean my room!”
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- Figure 49: Smart home areas of interest, by primary residence, March 2019
- Lookin’ smart – Tech and style go hand-in-hand for young homeowners
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- Figure 50: Smart home areas of interest, by Millennials and homeownership, March 2019
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- Figure 51: Meural Canvas at AT&T Chicago location, April 2019
Smart Speaker Usage
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- Majority of smart speaker owners play music, ask for general information
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- Figure 52: Smart speaker usage, March 2019
- Younger Millennials most active with their smart speakers
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- Figure 53: Smart speaker usage, by generation, March 2019
- More smart home devices leads to more frequent smart speaker engagement
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- Figure 54: Smart speaker usage, by number of smart home devices owned, March 2019
Smart Home Perceptions
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- Consumers associate smart homes with automation and modern
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- Figure 55: Smart home perceptions, March 2019
- Gender divide on cost of smart homes
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- Figure 56: Smart home perceptions – Expensive, by gender and age, March 2019
- Privacy concerns more pronounced among older generations
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- Figure 57: Smart home perceptions – Surveillance and energy efficient, by generation, March 2019
- Homeownership impacts smart home perceptions among Millennials
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- Figure 58: Smart home perceptions, by Millennials and homeownership, March 2019
Attitudes toward Smart Homes
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- Smart home tech will have a growing presence in real estate
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- Figure 59: Attitudes toward smart homes, March 2019
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- Figure 60: Attitudes toward smart homes, by home movers/buyers/renovators, March 2019
- Room for improvement with digital assistants among younger groups
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- Figure 61: Attitudes toward smart homes – Digital assistants, by generation, March 2019
- Parents willing to trust a smart device, but possibly not their kids?
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- Figure 62: Attitudes toward smart homes – Purchasing, by parental status, March 2019
Consumer Segmentation – Attitudes toward Smart Homes
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- Four segments of consumers based on attitudes toward smart homes
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- Figure 63: Consumer segments, March 2019
- Home Futurists
- Characteristics
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- Figure 64: Profile of Home Futurists, March 2019
- Opportunities
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- Figure 65: Smart home devices owned, by consumer segments, March 2019
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- Figure 66: Attitudes toward smart homes – Brand devices and digital assistants, by consumer segments, March 2019
- Lifestyle image key for Home Futurists
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- Figure 67: Smart home perceptions, by consumer segments, March 2019
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- Figure 68: Smart speaker brands owned, by consumer segments, March 2019
- Relationship Builders
- Characteristics
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- Figure 69: Profile of Relationship Builders, March 2019
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- Figure 70: Attitudes toward smart homes – Voice controls and digital assistants, by consumer segments, March 2019
- Opportunities
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- Figure 71: Reasons for not considering a smart speaker, by consumer segments, March 2019
- Condo Retirees
- Characteristics
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- Figure 72: Profile of Condo Retirees, March 2019
- Opportunities
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- Figure 73: Smart home perceptions – Select items, by consumer segments, March 2019
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- Figure 74: Addison Care CES 2019 exhibition, January 2019
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- Figure 75: Addison Care CES 2019 demonstration, January 2019
- Smart Home DIYers
- Characteristics
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- Figure 76: Profile of Smart Home DIYers, March 2019
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- Figure 77: Attitudes toward smart homes – Professional installation, by consumer segments, March 2019
- Opportunities
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- Figure 78: Areas of smart home interest, by consumer segments, March 2019
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
- TURF Analysis – Methodology
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- Figure 79: TURF Analysis, smart home areas of interest, March 2019
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