A Look at Smart Home Device Adoption by Category

By the end of 2017, there were an estimated 16.3% of homes that were considered “smart homes.” To be considered a smart home, the home has to include more than one internet-connected device, such as a TV, lights, appliances, locks, thermostats, cameras, and more. With companies like Amazon, Google, and others consistently coming out with new and improved smart home technology, we can expect more consumers to adopt the use of smart devices in the home. In fact, data reported by McKinsey states that the annual growth rate for the connected home industry is 31% and only expected to increase.

Further, new constructions of homes are often incorporating smart home devices. Smart appliances (smart refrigerator, washer, dryer, etc.) and smart smoke detectors are among the smart home products with the highest year-over-year growth, with 267% and 250% respectively—but how might brands in the smart home space encourage more adopters?

The Research

To answer the question above, and others, we sought to conduct an Agile A&U™ on various smart home consumer segments. The research focused on identifying what barriers and triggers to usage exist for smart home device adoption, and what categories of smart home devices provide the greatest opportunity for technology brands. For those who have yet to adopt smart home devices, we also sought to determine what motivations and concerns exist, and what messaging and marketing tactics would help increase their smart home device adoption. Specifically, the objectives were to

• Determine who the current smart home device adopters are compared to those who haven’t adopted smart home devices but are likely to do so in the future
• Identify the barriers and triggers to use for smart home devices among both segments of consumers
• Uncover how consumers learn more about smart home devices and what messaging or communication brands should use to drive adoption

The Results

54% of consumers plan to purchase a smart home device in the next year.

Many consumers already own at least one smart home device, such as a smart TV. However, the majority also intend to purchase another smart home device in the next year—likely one from the safety and security or entertainment categories.

There are some consumer segments who are less likely to purchase a smart home device in the near future.

Renters, Boomers, and those without children in the household are among the least likely to purchase a smart home device in the next year. Most of these consumers just don’t see the need or can’t justify the cost.

The high price of current smart home devices is a major barrier to purchase, in addition to data privacy and concerns around hacking.

Being a more trusted or widely recognized brand will help assuage concerns over data privacy and hacking. However, all brands will still have to create messages and communicate how their devices protect against potential data threats.

Download the full report to see additional detail into each consumer segment—current adopters and intenders—and see an overview of demographics and category adoption for various smart home device industries including home management, security and safety, utility management, appliances, and entertainment. You’ll also learn

• What specific devices in the categories above consumers are aware of or plan to purchase in the future
• The size and importance of top barriers and triggers to purchasing among various segments and demographics
• Consumers’ perceptions of their technology adoption and current smart technology devices owned
• What brands consumers feel are industry leaders in the smart home space
• Unmet needs among all smart device consumers when it comes to smart home technology