What you need to know
The rising take-up of connected home devices has been clear over the past year. While 67% of people said they didn’t own any of the smart devices featured in Mintel’s consumer research in April 2018, this has now fallen to 58%. While nearly every category showed increased ownership over the year, take-up has primarily been driven by the connected speaker market.
From ownership of 13% in April 2018, impressive growth rates have seen ownership reach 23%. Interest in voice-controlled speakers remains relatively high among non-owners, with growth set to continue over the next year. The market is still dominated by Amazon, with three quarters of voice-controlled speaker owners having Echo devices. Amazon continues to enhance and expand its range, providing low entry-level price points and regularly pushing the devices in major sale events. With Google and Apple set to expand their own ranges and other brands such as Samsung and Sonos launching devices, competition will drive the market forward. There is strong potential for multiple ownership too, with relatively low price points, the benefits of surround sound or having a smart speaker in several rooms.
Outside of the speaker market, interest in the connected home is focused on security and safety. Devices such as video doorbells, smart security cameras and smart smoke detectors are the most likely to attract new consumers to the connected home market. Existing sales and future interest in larger appliances such as smart fridge/freezers and washing machines have been limited by the long lifecycle of such household items. With nearly half of consumers without smart home items deeming the devices unnecessary, brands need to prove how the technology can bring real benefit to the home. Even then, there is the potential for people being put off by the idea of technology overload, with many already feeling the need to take time away from their smartphones or social media accounts.
Products covered in this Report
For the purposes of this Report the labels ‘smart’ and ‘connected’ refer to a family of features including: home automation and adaptive behaviour powered by machine learning; connectivity with other devices (including, but not limited to, a user’s smartphone) via various protocols (including Wi-fi and Bluetooth); and providing users with data on device usage (eg energy consumption data).
Devices referred to as ‘smart’ and/or ‘connected’ may have some, but not all of these features. The connected home products included within the scope of Mintel’s consumer research for this Report are:
Smart heating appliance/thermostat (eg Nest Learning Thermostat, Hive Active Heating)
Smart security devices (including door locks, cameras and sensors)
Smart lighting (eg Phillips Hue)
Smart appliances (eg fridges)
Smart audio speakers (eg Sonos Play)
Smart home hub controllers (eg SmartThings Hub)
Voice-controlled speakers with embedded virtual assistants (eg Amazon Echo, Google Home).
