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One-Third Of Homes Primed For Smart-Home Technology

21% of homes have it, another 36% are potential prime customers, says Strategy Analytics 12/21/2015 11:15:00 AM Eastern

Smart-home technology is used by 21 percent of all U.S. households, and another 36 percent are viable future customers, a Strategy Analytics analysis concluded.

The research and consulting company also surveyed online households about what they’d be willing to pay for and found the list topped by devices that allow for remote or automatic water shut-off if a leak is detected. That’s followed by devices that automatically adjust lights and thermostats based on who is home, a panic-button feature that turns on all lights in the house, remote monitoring and control of door locks, and motion-sensing camera s with visual notification. (See chart.)

In measuring the installed base, Strategy Analytics found that the number of U.S. households with some form of smart home system grew almost 30 percent in the past year to 26.8 million in 2015, or 21 percent of U.S. homes. The company also concluded that the average smart-home household will spend $817 on the technology, equating to a market size of $21.9 billion.

A total of 36 percent of U.S households are viable smart home targets, the company said, citing these three groups, in order, as the most likely to buy:

--Green Nesters, representing 16 percent of households and consisting of married families owning multiple smartphones and tablets. They show greater interest in smart home tech around occupancy-sensing systems for lights and heating, the company said.

--Impressers, representing 13 percent of households and skewing toward slightly younger females in higher income households. Their interest skews to motion-sensing cameras.

--Millennial males, under-35 consumers representing 7 percent of households and more likely not to have children. Their interest also skews to motion-sensing cameras.

Although “there seems to be a degree of negativity about the genuine opportunity for smart home technology, particularly around how many households are likely to use it,” Strategy Analytics said, “take-up rates are increasing very well and will continue if smart home manufacturers and marketers focus on the most viable potential customers.”

Although smart-home technology “is not for everyone,” the company said, “over a third of the population [is] ripe for it, which is a pretty good start.”
Visible brands such as Amazon, Apple, Google and Samsung “are building awareness for smart home technologies with their initiatives,” the company continued. “Technology advancements in enhanced visual and voice recognition, coupled with cognitive computing on a chip, will introduce new value propositions stimulating consumer demand.”

 

 

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