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Smart Homes - US - April 2016

Smart Homes - US - April 2016

"Only in the past few years has the smart home market emerged onto solid footing following a variety of early product failures, such as $20,000 smart refrigerators that were soundly rejected by consumers. The shift to a more attractive product mix came when manufacturers not only brought down prices but also began to take consumer needs into greater consideration, rather than spending research and development budgets on products that did not solve a specific problem."

- Billy Hulkower, Senior Technology Analyst

This report discusses the following key topics:

Difficulty communicating product benefits
Custom install a tough sell
Home automation/security subscriptions pull consumers out of market


OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
The issues
Figure 1: Interest in remote access to home devices, December 2015
Figure 2: Professional electronics installation, by household income, December 2015
Figure 3: US home security subscriptions, 2012-15
The opportunities
Figure 4: Attitudes to energy consumption, December 2015
Figure 5: Interest in energy consultations for the home, December 2015
Figure 6: Current ownership of smart home hardware, December 2015
Figure 7: Interest in acquisition of smart home hardware, December 2015
What it means
THE MARKET
What you need to know
Sales of connected devices for the home triple from 2013-15
Number of households, spending on homes favors growth
Installation, subscription services create challenges
Market sales
Sales top $5 billion
Figure 8: Manufacturer sales and fan chart forecast of security and connected devices, at current prices, 2011-20
Figure 9: Manufacturer sales of security and connected devices, at current prices, 2011-20
Connected devices growing fast but security retains bulk of sales
Figure 10: Manufacturer sales of security and connected devices, at current prices, 2011-20
Market perspective
Trouble communicating product benefits
DIY more attractive than professional installation
Figure 11: Professional electronics installation, by household income, December 2015
Subscriptions may negatively impact hardware sales
Figure 12: US home security subscriptions, 2012-15
Market factors
Growth in US households
Figure 13: Number of US households, 2010-15
Americans spending more on homes, gardens
Figure 14: Best- and worst-case forecast value sales of home and garden, at current prices, 2010-20
Interest in reducing power bills
Figure 15: Attitudes to energy consumption, December 2015
Pets, kids, elderly create interest in monitoring
Figure 16: Interest in monitoring the safety of home inhabitants, December 2015
Figure 17: Households with children, by age of householder, 2013
Figure 18: Interest in entertaining, green products, and new technology, by parental status, December 2015
Figure 19: Types of pets living in household, February 2015
KEY PLAYERS
What you need to know
Vast majority unaware of smart home brands
Poor familiarity with protocols creates opportunities
Larger tech firms likely to overtake early movers
What’s working?
Four connectivity brands carry double-digit awareness
Figure 20: Awareness of smart home brands, December 2015
What’s struggling?
Networking protocols: The audience is not listening
Figure 21: Awareness of communication protocols, December 2015
Smart lighting brands jeopardized by low awareness
Figure 22: Awareness of smart lighting brands, December 2015
Figure 23: Light bulb purchasing, December 2015
What’s next?
Tech titans aim to own the smart home
Retailers open smart home demos
Wearables join forces with If This Then That (IFTTT)
What you need to know
Market still in early adoption
Five products sought by more than a third of respondents
Interest in home monitoring high
Motivations for adoption
Home safety a concern for some consumers
Figure 24: Concern over the safety of the home, December 2015
Figure 25: Concern over the safety of the home, December 2015
Entertaining and going green
Figure 26: Interest in entertaining and green products, December 2015
Young men want to impress others
Figure 27: Interest in entertaining and green products, by gender and age, December 2015
“Wow” factor, green status can increase product premiums
Figure 28: Interest in entertaining and green products, by household income, December 2015
Remote control of the home
Phone as controller of choice
Figure 29: Interest in smart home convenience functions, December 2015
Figure 30: Interest in smart home convenience functions, by gender and age, December 2015
Interest in remote access high for categories with clear usage cases
Figure 31: Interest in remote access to home devices, December 2015
Younger consumers more desirous of remote access
Figure 32: Interest in remote access to home devices, by age, December 2015
Interest in home safety and monitoring
Security and monitoring hardware a leading smart home category
Figure 33: Interest in and ownership of home security/monitoring, December 2015
Men 18-34 lead in interest in home security
Figure 34: Interest in home security/monitoring, by gender and age, December 2015
Home monitoring appealing to Hispanic audience
Figure 35: Interest in home security/monitoring, by Hispanic origin, December 2015
Urbanites seek security
Figure 36: Interest in and ownership of home security/monitoring devices, by area, December 2015
Figure 37: Interest in smart home products – CHAID – Table output, December 2015
Interest in smart lighting and thermostats
Smart lighting and thermostats ready for mainstream adoption
Figure 38: Interest in and ownership of smart thermostats and lighting, December 2015
Urbanites ready to adopt products with panache
Figure 39: Interest in and ownership of smart thermostats and lighting, by area, December 2015
Capitalizing on synergy across categories
Figure 40: Interest in smart lighting, by attitudes to home technology, December 2015
Consumer highlight – Parents
Home security/monitoring carry elevated interest for parents
Figure 41: Interest in home security/monitoring, by parental status, December 2015
Parents safe choice for creative materials
Figure 42: Interest in remote access to the home, by parental status, December 2015
Parents keen on keyless entry
Figure 43: Interest and ownership in smart home products – CHAID – Tree output, December 2015
Interest in multi-room audio
Half of adult consumers want multi-room audio
Figure 44: Interest in and ownership of multi-room audio systems, December 2015
Young adults with high household income more receptive
Figure 45: Interest in multi-room audio, by age and income, December 2015
New audio products may help young men impress guests
Figure 46: Interest in multi-room audio, by gender and age, December 2015
APPENDIX
Data sources and abbreviations
Data sources
Abbreviations and terms
Additional demographic data
Presence of children in the home
Figure 47: Households, by presence of children, 2003-13
CHAID analysis methodology
Additional consumer data
Interest in smart thermostats and lighting
Figure 48: Interest in smart lighting and thermostats, by gender and age, December 2015
Figure 49: Interest in smart lighting and thermostats, by parental status, December 2015
Interest in remote access
Figure 50: Interest in remote access to home devices, by gender and age, December 2015
Figure 51: Interest in smart home convenience functions, by parental status, December 2015
Figure 52: Interest in remote access to home devices, by home ownership, December 2015
Interest in home security hardware
Figure 53: Interest in home security/monitoring, by homeownership, December 2015
Figure 54: Interest in home security/monitoring, by attitudes to home technology, December 2015
Energy efficiency
Figure 55: Perception of current home energy efficiency, by household income, December 2015
Figure 56: Perception of current home energy efficiency, by age, December 2015
Figure 57: Perception of current home energy efficiency, by Hispanic origin, December 2015
Figure 58: Perception of current home energy efficiency, by home ownership, December 2015
Figure 59: Interest in room-by-room temperature control, by gender and age, December 2015
RESEARCH METHODOLOGY
US Research Methodology
Consumer research
Social Media Research
Trade research
Statistical Forecasting

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