The Connected Home - UK - May 2017

OVERVIEW
What you need to know
Products covered in this Report
EXECUTIVE SUMMARY
The market
Demystifying the connected home
Platform compatibility arms race
Virtual assistants are a move from app-control to voice-control
Unwanted intrusions in the connected home
Companies and brands
Amazon Echo arrives in the UK…
…followed by Google Home
Microsoft to compete with Amazon and Google
IKEA makes first step into the smart home
The consumer
Connected home still in the early adopter phase
One in 20 has voice controlled speakers in their household
Figure 1: Ownership of smart/connected devices, December 2016
Lighting, heating and security are the most interesting propositions
Figure 2: Interest in smart/connected devices, December 2016
Consumers relatively positive about interactions with unfamiliar smart technology
Opportunities with older consumers
Figure 3: Preferred interactions with smart/connected devices, by interest in buying smart/connected devices, December 2016
Out-of-home interactions are the most worth paying for
Three in 10 would pay for data on their own usage habits
Figure 4: Interest in features of smart/connected devices, December 2016
Automation is a selling point for busy consumers
Figure 5: Interest in features of smart/connected devices, December 2016
Voice controlled speakers and smart hubs get consumers interested in smart features
Data privacy second only to technical support
Half want to try connected devices themselves
Education can help demystify the connected home
Figure 6: Factors impacting likelihood of purchase of smart/connected devices, December 2016
Security concerns a barrier for half of those interested
Figure 7: Security concerns about smart/connected devices, by interest in buying smart/connected devices, December 2016
What we think
ISSUES AND INSIGHTS
Will voice control make smart home interactions intuitive?
The facts
The implications
Education and demonstration
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Demystifying the connected home
Platform compatibility arms race
Virtual assistants are a move from app-control to voice-control
Unwanted intrusions in the connected home
Growth in spending on electronics could benefit the connected home market
MARKET DRIVERS
Demystifying the connected home
Platform compatibility arms race
Virtual assistants are a move from app-control to voice-control
Unwanted intrusions in the connected home
Growth in spending on electronics could benefit the connected home market
Figure 8: Consumer spending on all electrical products: market size and forecast (including VAT), 2011-21
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Amazon Echo arrives in the UK…
…followed by Google Home
Microsoft to compete with Amazon and Google
IKEA makes first step into the smart home
Olly is the ‘personable’ virtual assistant
New smart devices from LG in 2017
LAUNCH ACTIVITY AND INNOVATION
Amazon Echo arrives in the UK…
Figure 9: Amazon Echo
…followed by Google Home
Figure 10: Google Home
Microsoft to compete with Amazon and Google
IKEA makes first step into the smart home
Figure 11: IKEA’s TRÅDFRI range
Olly is the ‘personable’ virtual assistant
Figure 12: Olly
New smart devices from LG in 2017
THE CONSUMER – WHAT YOU NEED TO KNOW
Connected home still in the early adopter phase
One in 20 have voice controlled speakers in their household
Lighting, heating and security are the most interesting propositions
Consumers relatively positive about interactions with unfamiliar smart technology
Opportunities with older consumers
Out-of-home interactions are the most worth paying for
Three in 10 would pay for data on their own usage habits
Automation is a selling point for busy consumers
Voice controlled speakers and smart hubs get consumers interested in smart features
Data privacy second only to technical support
Half want to try connected devices themselves
Education can help demystify the connected home
Security concerns a barrier for half of those interested
OWNERSHIP AND INTEREST IN CONNECTED/SMART DEVICES
Connected home still in the early adopter phase
One in 20 has voice controlled speakers in their household
Lighting, heating and security are the most interesting propositions
Figure 13: Ownership of smart/connected devices, December 2016
Figure 14: Interest in smart/connected devices, December 2016
Figure 15: Repertoire of interest in smart/connected devices, December 2016
Mortgage payers are the most engaged with the smart home
What consumers think
Open to getting connected, but not worthwhile for renters
Still early days, but never say never
A shortcut I can manage without
Technology for technology’s sake
INTERACTIONS WITH SMART/CONNECTED DEVICES
Consumers relatively positive about interactions with unfamiliar smart technology
Opportunities with older consumers
Figure 16: Preferred interactions with smart/connected devices, by interest in buying smart/connected devices, December 2016
FEATURES OF SMART/CONNECTED DEVICES
Out-of-home interactions seen as the most worth paying for
Three in 10 would pay for data on their own usage habits
Automation is a selling point for busy consumers
Figure 17: Interest in features of smart/connected devices, December 2016
Figure 18: interest in features of smart/connected devices, December 2016
Voice controlled speakers and smart hubs get consumers interested in smart features
Figure 19: Features of smart/connected devices respondents would pay for, by interest in buying smart/connected devices, December 2016
FACTORS IMPACTING LIKELIHOOD OF PURCHASE
Data privacy second only to technical support
Half want to try connected devices themselves
Education can help demystify the connected home
Figure 20: Factors impacting likelihood of purchase of smart/connected devices, December 2016
SECURITY CONCERNS ABOUT SMART/CONNECTED DEVICES
Security concerns a barrier for half of those interested
Figure 21: Security concerns about smart/connected devices, by interest in buying smart/connected devices, December 2016
What consumers think
Online life already exposes us to web-based security risks
I would not take them for free
Why would someone hack into my heating?
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Consumer research methodology