Smart Homes - US - May 2021

OVERVIEW
What you need to know 
Key issues covered in this Report
Definition 
Market context
Economic and other assumptions 
COVID-19: US context
EXECUTIVE SUMMARY 
Top takeaways
Market overview
Impact of COVID-19 on smart homes
Figure 1: Short-, medium- and long-term impact of COVID-19 on the smart home category, May 2021
Opportunities and challenges
Home entertainment products could be the gateway into other connected devices
Figure 2: Smart home device ownership, March 2020-April 2021
Security is an essential component of brand reputation and marketing messaging
Figure 3: Important smart home device factors, April 2021
Remote control is the leading theme for smart home technology
Figure 4: Personal smart home characteristics, March 2020-April 2021
Consumers have positive sentiments toward smart home technology and benefits
Figure 5: Attitudes toward smart homes – Benefits/automation, April 2021
THE MARKET – KEY TAKEAWAYS 
Home ownership dips following COVID-19 pandemic
Smart home device ownership trending upwards
Global computer chip shortage will apply demand and pricing pressure
Remote work will drive further smart home integration
MARKET INDICATORS – STATE OF HOME
COVID-19 boosts US home ownership rates – but maybe only temporarily
Figure 6: US home ownership rates, by quarter, January 2000-January 2021
Figure 7: National Association of Home Builders single family home starts and housing market index, January 2005-March 2021
Younger consumers bear brunt of COVID-19 economic impact
Figure 8: Unemployment rate, by age, January 2020-March 2021
Impact of COVID-19 on smart homes
Figure 9: Short-, medium- and long-term impact of COVID-19 on the smart home category, May 2021
SMART HOME DEVICE OWNERSHIP
Smart device ownership increases to nearly eight in 10 households
Figure 10: Smart home device ownership, March 2020-April 2021
Connected devices expected to continue growth past 2021
Figure 11: Smart home device ownership, March 2019, March 2020 and April 2021
MARKET FACTORS 
Global computer chip shortage will raise prices on smart home devices
Younger consumers will drive the smart home market
Remote work means a continuation of more time spent at home
Wi-fi 6 allows for more connected devices
Sustainability messaging could attract new consumers
COMPANIES AND BRANDS – KEY TAKEAWAYS 
Apple looks to revamp its smart home products
Amazon’s “Certified for Humans” badge offers confidence on its marketplace
Google’s partnership with ADT combines tech know-how with leading security service
LG aims at the uber wealthy with LG Signature line
SimpliSafe outspends competition on podcast ads
COMPETITIVE STRATEGIES
Apple
Apple HomePod discontinued after years of struggling to find buyers
Apple looks to revamp its approach to the smart home market
Amazon
Amazon moves to make the smart home simple for consumers
Figure 12: Amazon.com “Certified for Humans” badge, April 2021
Google
Google partners with ADT for smart home security
Google service outage leads to negative press on its smart home devices
LG
LG abandons smartphone category to focus on the smart home and IoT devices
LG Signature line goes for the uber wealthy
Samsung
“A Better Normal” – Samsung’s presentation at CES 2021 focused on the smart home
Samsung teases home robot at CES 2021
MARKET OPPORTUNITIES 
TVs are the center of the home
Home movers and renovators are great opportunity to sell smart appliances
Figure 13: Home behaviors, April 2021
Figure 14: Breakdown of smart home devices owned, by home behaviors, April 2021
SimpliSafe spends big on podcasting
Figure 15: Online ad recall from the past seven days – Podcasts, by gender and age, and age and income, June 2020
Figure 16: Estimated podcast spend, by home security providers, January 2019-March 2021
THE CONSUMER – KEY TAKEAWAYS 
Growing percentage of self-described smart homes
Ownership rates increase across majority of smart home devices
Younger consumers will drive growth in smart home category
Security is the primary concern and feature for smart home devices
Consumers feel smart home features are becoming more affordable
COVID-19 shifts priorities to the home for consumers
SMART HOME INCIDENCE
Increasing number of consumers consider their home a “smart home”
Figure 17: Personal home perception, March 2020-April 2021
Age, wealth and gender drive smart home participation
Figure 18: Personal home perception, by gender, age and household income, April 2021
Remote and voice controls drive participation in smart home category
Figure 19: Smart home characteristics – Among those who say they have a smart home, March 2020-April 2021
Figure 20: Smart home characteristics – Among those who say they do not have a smart home, March 2020-April 2021
SMART HOME DEVICE OWNERSHIP
Increased ownership rates across majority of smart home devices
Figure 21: Smart home device ownership, March 2020-April 2021
Figure 22: Smart home device ownership, by number of smart home devices owned, April 2021
Vast majority of men 18-44 with at least $75K household income own a smart home device
Figure 23: Smart home device ownership, by gender, age and household income, April 2021
Figure 24: Breakdown of number of smart home devices owned, by gender and age, April 2021
Smart thermostats can also draw consumers into smart home category
Figure 25: Smart home devices owned, by number of smart home devices owned, April 2021
Hybrid commuters show highest smart home device ownership rates
Figure 26: Number of smart home devices owned, by work commute, April 2021
Figure 27: Smart home devices owned, by work commute, April 2021
SMART HOME DEVICE PURCHASE INTEREST
Smart lights lead purchase intent among non-owners
Figure 28: Smart home device purchase intent, April 2021
Figure 29: Breakdown of number of smart home devices interested in owning, April 2021
Figure 30: Number of smart home devices interested in owning, by smart light owners, April 2021
Consumers with no interest in smart home devices significantly older
Figure 31: Age breakdown, by consumers who own or are interested in owning a smart home device, April 2021
IMPORTANT SMART HOME DEVICE FACTORS
Security is the top concern for consumers shopping for smart home products
Figure 32: Important smart home device factors, April 2021
Younger consumers value the aesthetics while older consumers value support
Figure 33: Important smart home device factors, by age, April 2021
Positive online reviews can increase participation among Asians
Figure 34: Important smart home device factors, by race and Hispanic origin, April 2021
Security is paramount when it comes to smart home devices
Figure 35: TURF Analysis – Desired smart features, April 2021
Methodology
HOME BEHAVIORS
Only half of consumers have reliable internet throughout their entire home
Figure 36: Home behaviors, April 2021
Home changes draw interest in high-end smart home devices
Figure 37: Smart home device ownership and interest in owning, by home behaviors, April 2021
SMART HOME CHARACTERISTICS
Association with high cost drops year over year
Figure 38: Smart home characteristics, March 2020-April 2021
Participation in smart home category changes perceptions
Figure 39: Smart home characteristics, by personal home perception, April 2021
Figure 40: Smart home characteristics, by ownership or interest in a smart home device, April 2021
Black consumers more likely to associate smart homes with surveillance
Figure 41: Smart home characteristics, by race and Hispanic origin, April 2021
ATTITUDES TOWARD SMART HOME TECHNOLOGY
COVID-19 has elevated the importance of the home for consumers
Figure 42: Attitudes toward smart homes – Sanitation/COVID-19, April 2021
Smart home tech widely considered beneficial
Figure 43: Attitudes toward smart homes – Benefits/automation, April 2021
Figure 44: Attitudes toward smart home technology – Benefits/automation, by number of smart home devices owned, April 2021
Smart home category slightly improves perception of affordability and cost benefits
Figure 45: Attitudes toward smart homes – Cost, March 2020-April 2021
Concerns about hacking are far greater than installation/setup
Figure 46: Attitudes toward smart homes – Hacking/use/installation, April 2021
Figure 47: Attitudes toward smart homes – Use/installation, March 2020-April 2021
Figure 48: Attitudes toward smart homes – Use/installation, by number of smart home products owned, April 2021
CONSUMER SEGMENTATION – ATTITUDES TOWARD SMART HOME TECHNOLOGY
Figure 49: Smart home technology consumer segments, April 2021
Smart Home Power Users (24%)
Characteristics
Figure 50: Profile of Smart Home Power Users, April 2021
Opportunities
Figure 51: Breakdown of number of smart home devices owned, by consumer segments of attitudes toward smart home technology, April 2021
Figure 52: Breakdown of consumer segments, by work commutes, April 2021
Figure 53: Home behaviors, by consumer segments of attitudes toward smart home technology, April 2021
Trusting Users (27%)
Characteristics
Figure 54: Profile of Trusting Users, April 2021
Figure 55: Smart home devices owned, by consumer segments of attitudes toward smart home technology, April 2021
Opportunities
Figure 56: Smart home device purchase intent, by consumer segments of attitudes toward smart home technology, April 2021
Non-users (22%)
Characteristics
Figure 57: Profile of Non-users, April 2021
Opportunities
Smart Home Beginners (27%)
Characteristics
Figure 58: Profile of Smart Home Beginners, April 2021
Opportunities
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Consumer qualitative research
Marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – TURF ANALYSIS 
Figure 59: Table – TURF Analysis – Desired smart features, April 2021
TURF methodology