Table of Contents
Executive Summary
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- The market
- Connected home growth largely reliant on desire for voice commands
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- Figure 1: Use of new technology in the last three months, April 2017-December 2018
- Potential insurance savings drive interest in smart security
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- Figure 2: Ownership of smart devices for the home, October 2018
- Companies and brands
- Amazon dominates three quarters of voice-controlled speaker market
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- Figure 3: Brand of voice-controlled speakers in household, March 2019
- Total connected home advertising spend falls in 2018
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- Figure 4: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by category, 2016-18
- The consumer
- Over four in 10 people have a connected home device
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- Figure 5: Household ownership of smart Wi-fi-connected devices, April 2018 and March 2019
- The expense of smart home devices is the main limit to growth
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- Figure 6: Reasons for not buying smart home devices, March 2019
- Security and safety devices are the most likely to attract new smart home customers
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- Figure 7: Interest in smart home devices, March 2019
- Video doorbells top the smart home security wish list
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- Figure 8: Smart home security devices buying intention, March 2019
- Online-only retailers the first port of call for smart security
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- Figure 9: Smart home security purchase location, March 2019
- Six in 10 people keen to use smart security for parcel deliveries
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- Figure 10: Attitudes towards the connected home, March 2019
- What we think
Issues and Insights
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- The success of voice-controlled smart speakers must be used to drive the wider connected home
- The facts
- The implications
- Maximising the potential of the smart security market
- The facts
- The implications
The Market – What You Need to Know
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- Connected home growth largely reliant on desire for voice commands
- Proportion of people renting could limit connected home investment
- Amazon investing heavily in the connected home
- Smart speakers becoming a key part of major sale events
- Potential insurance savings drive interest in smart security
Market Drivers
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- Connected home growth largely reliant on desire for voice commands
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- Figure 11: Use of new technology in the last three months, April 2017-December 2018
- Proportion of people renting could limit connected home investment
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- Figure 12: Home ownership, by age, March 2019
- Amazon investing heavily in the connected home
- Smart speakers becoming a key part of major sale events
- Potential insurance savings drive interest in smart security
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- Figure 13: Ownership of smart devices for the home, October 2018
Companies and Brands – What You Need to Know
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- Amazon dominates three quarters of voice-controlled speaker market
- Apple’s late entry to the market has limited HomePod take-up
- Google rebrands Home Hub and launches Nest Hub Max
- Amazon upgrades Echo range and launches Echo Sub
- Total connected home advertising spend falls in 2018
Brand Ownership – Voice-controlled Speakers
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- Amazon dominates three quarters of voice-controlled speaker market
- Google continues to expand range to challenge Amazon
- Apple’s late entry to the market has limited HomePod take-up
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- Figure 14: Brand of voice-controlled speakers in household, March 2019
Launch Activity and Innovation
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- Google rebrands Home Hub and launches Nest Hub Max
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- Figure 15: Google’s Nest Hub Max
- Amazon upgrades Echo range and launches Echo Sub…
- …alongside its first smart plug
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- Figure 16: Amazon Smart Plug
- Samsung set to enter voice-controlled speaker market with Galaxy Home
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- Figure 17: Samsung’s Galaxy Home smart speaker
- Apple expected to release second-generation HomePod in 2019
- Echo devices begin supporting Apple Music
- Amazon rolls out Alexa Guard security in the US
- Bang & Olufsen brings Google Assistant to the luxury speaker market
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- Figure 18: Bang & Olufsen’s Beosound 1 and 2 speakers
Advertising and Marketing Activity
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- Total connected home advertising spend falls in 2018
- Amazon remains by far the largest smart home advertiser
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- Figure 19: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by category, 2016-18
- Figure 20: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by advertiser, 2018
- Nearly two thirds of connected home advertising budgets focused on TV
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- Figure 21: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by advertising medium, 2018
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Over four in 10 people have a connected home device
- Voice-controlled speakers now lead the connected speaker market
- The expense of smart home devices is the main limit to growth
- Security and safety devices are the most likely to attract new smart home customers
- Video doorbells top the smart home security wish list
- Twice as many would pay for professional installation than would do it themselves
- Six in 10 people keen to use smart security for parcel deliveries
Ownership of Connected Home Devices
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- Over four in 10 people have a connected home device
- Voice-controlled speakers now lead the connected speaker market
- Smart domestic appliances struggling for growth…
- …while connected security shows promise
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- Figure 22: Household ownership of smart Wi-fi-connected devices, April 2018 and March 2019
- The expense of smart home devices is the main limit to growth
- Convenience and function must overcome technological overload
- Privacy remains an issue with concerns over device hacking
- Whole-home cybersecurity potential
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- Figure 23: Reasons for not buying smart home devices, March 2019
Interest in Connected Home Devices
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- Security and safety devices are the most likely to attract new smart home customers
- Control of heating and lights is key market for the connected home
- Interest in connected speakers points to further market growth
- Long lifecycle of domestic appliances limits upgrades to smart devices
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- Figure 24: Interest in smart home devices, March 2019
- Men showing more interest in the connected home…
- …while high interest among younger demographics points to long-term growth
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- Figure 25: Interest in smart home devices, by age, March 2019
- Half of parents of under-18s interested in voice-controlled speakers
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- Figure 26: Interest in buying a smart voice-controlled speaker, by parental status, March 2019
Security and the Connected Home
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- Video doorbells top the smart home security wish list
- Far greater interest in house alarms than damage prevention sensors
- Half of those interested in connected security considering smart locks
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- Figure 27: Smart home security devices buying intention, March 2019
- Online-only retailers the first port of call for smart security
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- Figure 28: Smart home security purchase location, March 2019
- Twice as many would pay for professional installation than would do it themselves
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- Figure 29: Smart home security installation, March 2019
- Security subscriptions find favour with the under-45s
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- Figure 30: Smart home security subscriptions, by age, March 2019
Attitudes towards the Connected Home
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- Six in 10 people keen to use smart security for parcel deliveries
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- Figure 31: Attitudes towards the connected home, March 2019
- Automated household orders could drive the connected home
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- Figure 32: The connected home – CHAID – Tree output, March 2019
- Over half of 16-34s keen to use voice commands to shop online
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
- CHAID analysis – Methodology
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- Figure 33: The connected home – CHAID – Table output, March 2019
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