Smart Homes - US - June 2018

OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY 
Overview
The issues
Cost chief obstacle
Figure 1: Negative characteristics associated with smart home tech, April 2018
DIY a hindrance to subscription sales
Figure 2: Subscription and interest in subscription to home security and automation services, April 2018
Limited reasons to monitor
Figure 3: Motivations for home monitoring, April 2018
The opportunities
Market far from saturated
Figure 4: Ownership and interest in purchase – Convenience products, April 2018
Figure 5: Ownership and interest in purchase – Security products, April 2018
Convenience products hit their stride
Figure 6: Annual sales gains by segment, 2014-18
Emphasizing disaster prevention
Figure 7: Positive characteristics associated with smart home tech, April 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
“Works with” promotes growth
Security falls from lead
More limited potential for alarms, in-home monitoring
MARKET SIZE 
Familiarity and integration propel sales 2016-18
Figure 8: US manufacturer sales of smart home devices, at current pricing, 2013-18
Figure 9: Smart home devices, incremental sales gains by segment, 2014-18
MARKET BREAKDOWN
Connected home carries growth
Installation weighs in on purchases
Robots gain functions
Pets are people too
Figure 10: Total US manufacturer sales of smart home devices, by segment, at current prices, 2016 and 2018
Figure 11: Total US manufacturer sales of smart home devices, by segment, at current prices, 2015-18
MARKET FACTORS 
Pets and independent seniors loom large
Figure 12: Motivations for home monitoring, April 2018
Neighborhood networks increase awareness of crime
KEY PLAYERS – WHAT YOU NEED TO KNOW 
Familiarity beats expertise
Specialists less trusted
Buyouts offer specialists deeper pockets
WHAT’S WORKING?
Largest, oldest brands most trusted
Figure 13: Smart home brands with high levels of trust, April 2018
Smartphones as interface
Figure 14: Hardware used for home control/monitoring, April 2018
Figure 15: Cox Homelife direct mail marketing, May 2017
Figure 16: CPI Security systems direct mail marketing, June-July 2017
WHAT’S STRUGGLING?
Specialists less well-regarded
Bumpy rode ahead for Logitech
Netgear spins off Arlo
Ecobee hamstrung by marketing spend
Figure 17: Smart home brands with low levels of trust, April 2018
WHAT’S NEXT?
Nest and Ring grow brand names
Figure 18: Trust in smart home brands (Nest and Ring), April 2018
Voice control
Figure 19: Interfaces used for home control/monitoring, April 2018
Figure 20: Use of voice-centered hardware and interfaces to control smart home, by age, April 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Majority of adults interested in both product segments
Most products carry potential sales to a third of all households
Young men top target
Moving away from home security
Subscriptions appeal to a more limited base
OWNERSHIP AND INTEREST IN PURCHASES
Market far from saturated
Figure 21: Ownership and interest in purchase – Convenience products, April 2018
Fire top safety concern
Figure 22: Ownership and interest in purchase – Safety products, April 2018
Near universal interest among young men who own homes
Figure 23: Ownership and interest in convenience products, CHAID tree output, April 2018
Figure 24: Ownership and interest in safety products, CHAID tree output, April 2018
SECURITY AND AUTOMATION SERVICES
DIY solutions put pressure on subscriptions
Figure 25: Subscription and interest in subscription, April 2018
Young men more likely to be interested in adding service
Figure 26: Subscription and interest in subscription, by gender and age, April 2018
Gains to be made in middle-income groups
Figure 27: Subscription and interest in subscription, by household income, April 2018
Treating the concerns of parents lightly
Figure 28: Subscription and interest in subscription, by parental status, April 2018
Figure 29: Xfinity home email marketing, March 2017
Focusing on larger markets
Figure 30: Subscription and interest in subscription, by area of residence, April 2018
Seeking security switchers among homeowners
Figure 31: Subscription and interest in subscription, home security, and automation, by homeownership, April 2018
POSITIVE AND NEGATIVE ASSOCIATIONS
Home safety and cool tech top positives
Figure 32: Positive characteristics associated with smart home tech, April 2018
Young men see cool tech
Figure 33: Positive characteristics associated with smart home tech, by gender, April 2018
Cost tops list of negative associations
Figure 34: Negative characteristics associated with smart home tech, April 2018
Figure 35: Negative characteristics associated with smart home tech, by homeownership, April 2018
Young men less likely to view expense as problematic
Figure 36: Negative characteristics associated with smart home tech, by gender and age, April 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Consumer survey data
CHAID analysis methodology
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms
APPENDIX – THE MARKET 
Figure 37: US manufacturer sales of smart home devices, at inflation-adjusted prices, 2013-18
Figure 38: US manufacturer sales of selected products, at current prices, 2016 and 2018
APPENDIX – THE CONSUMER 
Figure 39: Positive characteristics associated with smart home tech, by household income, April 2018
Figure 40: Positive characteristics associated with smart home tech, by race/Hispanic origin, April 2018