The Smart Home Opportunity

Smartness has quietly made its way into people’s homes. Our research has found that in advanced markets, 37% of households own at least one smart home device, be that an appliance, thermostat, light bulb, doorbell, security camera or a robot vacuum cleaner. This is one of the findings of the latest wave of our Connected Consumer Radar, a survey of six technologically advanced markets around the world, published every two months.

Spain and Singapore lead the way with almost 50% penetration, mostly thanks to very high ownership of robot vacuum cleaners. But the four other countries covered — the US, Germany, the UK and Australia — aren’t far behind.

It’s not difficult to find some commonality among people who have already smartened up their house. They’re more likely to be younger, more affluent, more tech-savvy and more environmentally conscious than those who are yet to be tempted into buying their first smart gadget for the home.

Importantly, the survey highlights a strong desire among owners to add to their device collection. More than half of those who already own some smart home devices are keen to buy new types. Further to that, another 20% of all households intend to buy their first smart home device in the future.

All types of smart home device gather interest, but smart lights are the most wished-for item in Spain, Germany and Singapore. Smart doorbells are top of the list in the UK and Australia, whereas in the US smart security cameras have the highest score.

Of course, the rising cost of living is lessening people’s ability and willingness to spend money on new gadgets, but those who intend to buy smart home devices tend to be more optimistic than average about their financial future. Furthermore, some of these devices are a pragmatic purchase in these times. For example, smart thermostats and smart lights can save energy, benefiting both their owners’ bank accounts and the environment. Similarly, smart security cameras and smart doorbells help people feel safer at a time when they’re generally facing a high level of uncertainty.

As established categories of connected devices like mobile phones are stagnating, understanding consumer behaviour toward smart home devices allows device-makers, operators and retailers to make informed decisions about how to approach the smart home market and make the most of the opportunities it presents.

If you want to hear more about our smart home data, join us for a webinar on 13 July at 14:00 BST. A replay of the recording will be available after the event. Sign up here: