The connected home has evolved over time with consumers slowly adding connected devices to their homes and being accustomed to technology in their daily lives. As consumers have shifted their lives the past year in almost every way, we see market disruptions continue to emerge as a result of ubiquitous broadband adoption, device usage, and consumer expectations for connectivity solutions providing a personalized experience.
Parks Associates' research reveals that US consumers living in households with broadband internet have on average 13 connected devices in their home, ranging from computing to smart home to appliances to entertainment devices to connected health devices. Connected entertainment or consumer electronics devices are the largest category of devices, making up an average of 9 connected devices in the home.
Smart home device adoption has steadily increased, and the dynamics of this market have shifted, from one or two "hero devices" driving overall adoption to a group of products combining to deliver targeted use cases.
Parks Associates’ latest consumer survey of 10,000 U.S. broadband households shows that 34% of U.S. broadband households own at least one smart home device and 23% now own three or more smart home devices, up from 19% in 2019. Additionally, the firm reports that consumers who own a smart home device now own an average of seven smart home devices. This emphasizes the growth in the market coming from consumers who already own one of these devices and who are adding additional devices.
A growing percentage of smart home device owners now experience multiple problems with their devices each year, and within the last 12 months, one-third of smart home device owners report experiencing technical problems. While the type of remote support available to consumers will vary based on the problem they experience, it remains important to understand consumers’ preferences and be able to support technical issues easily.
Adoption of smart home products in the US has been driven by security and safety use cases, with energy-related use cases a secondary priority. Yet, as thermostat manufacturers seek to grow the industry beyond tech-enamored early adopters to reach the more cost-conscious mass market, energy management use cases and cost savings may well become the tipping point. Parks Associates research finds that eighty-four percent of households take some mindful action to reduce energy consumption, including 45% of households who adjust the thermostat to save energy. Additionally, 11% of US broadband households own a smart light bulb, and 9% own a smart plug.
Today, homes equipped with advanced technology continue to increase in popularity due to the convenience, comfort and security it brings. Parks Associates’ year-round CONNECTIONS Conference explores market trends, the effects of COVID-19 and the elevation of household tech, and strategies to leverage new consumer demands to advance the vision of the connected home. The executive research conference includes presentations from Parks Associates' leading analysts and visionary sessions featuring executives in the connected entertainment and digital home technology industries.
For more information about Parks Associates’ 25th annual CONNECTIONS Conference please visit www.connectionsus.com
For more from Elizabeth Parks, check out this recent CEDIA Podcast.