Current market status- The
number of UK households with some form of smart home system has increased
30% on last year to 4.0 million in 2015 – 14% of homes in the UK
- The
average smart home will spend £256 on the technology, equating to a market
size of £940 million. In comparison, US homes average £541
Nearly 30% of UK households are
viable smart home targets - but who are they?
The analysis identified six distinct consumer segments – three of which are
realistic for purchasing smart home systems and services. In order of
likelihood they are:
- Impressers
(11%) – skew towards slightly younger females in higher income, connected
device households. Big skew in interest for motion sensing camera tech
- Millennial
Males (9%) – under 35, more likely not to have children and live in flats.
Again spike in interest for motion sensing camera tech
- Green Nesters (8% of the population) – married families owning multiple smartphones and tablets. Much greater interest in smart home tech around occupancy-sensing systems for lights and heating
“After the initial hype, 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. However, take-up rates are increasing very
well and will continue if smart home manufacturers and marketers focus on the
most viable potential customers. Of course, it’s not for everyone but nearly
30% of the population are ripe for it, which is a pretty good start.”
“British Gas Connected Homes is poised to reach 300,000 customers for its
Hive service which is focused on energy management. We believe that home monitoring
is a bigger draw if priced right. Service providers could spur the market with
free basic monitoring and notification services bundled with their other
services and then offer several levels of premium capabilities for additional
fees. Insurance firms could do the same. Security service providers are
well-positioned to offer self-monitoring and automation capabilities on top of
their current services.”
Most popular smart home technologies
UK consumers are most willing to pay for notifications about potential hazards
and emergencies in their home (10% to 11%) followed by a system that can
automatically shut off the water in case of a leak and remote video monitoring
(both 9%).
What the near future holds
“Big brands such as Amazon, Apple, Google and Samsung are building awareness for smart home technologies with their initiatives. Technology advancements in enhanced visual and voice recognition coupled with cognitive computing on a chip will introduce new value propositions stimulating consumer demand. Google’s Nest will leap beyond the thermostat, smoke detector and camera to door bells and locks and virtually every control point in the home.
Bill Ablondi, Strategy Analytics’ Director, Smart Home Strategies.