Latest Market Research Shows Over 80 Percent of Consumers Interested in Making Homes Smarter

Latest Market Research Shows Over 80 Percent of Consumers Interested in Making Homes Smarter

PALO ALTO, CA - Consumer awareness of the connected home is growing quickly, according to findings released from connected home studies that were fielded by Kelton Global and Research Now in the U.S. earlier this year. Commissioned by Nest, the studies were designed to uncover consumer sentiment about the connected home market.

Findings include:

Eighty-one percent of Americans either own or are interested in purchasing a connected home product in the next year.

To Americans, the main benefit of having a connected home product is increased convenience (54 percent), followed by increased security (44 percent), a reduced energy bill (38 percent) and boosted home value (21 percent).

Thirty-eight percent of Americans are more interested in connected home products today than they were six months ago.

The increased interest is also reflected in the retail environment.

“Connected home products like the Nest Thermostat are among one of the fastest growing categories in the retail environment,” said Amanda Parrilli, Director of Connected Home, Home Depot. “And considering the connected home is really just starting to take off, the potential for the market is incredibly exciting.”

Family and Home are Top Priorities

The average connected consumer is family- and home-oriented. An overwhelming 89 percent said spending time with family is their first priority, yet approximately half (51 percent) rarely have enough time in the day to do all they need. Perhaps that’s why 63 percent wish that their home could just take care of itself. Fifty-six percent feel it’s more important that their home is comfortable than looks good, and 73 percent love their home and want to live in it for a long time.

Home Safety Top of Mind

Increased safety and security continue to be compelling reasons to integrate connected home technology with 44 percent of Americans indicating this as a key benefit of having connected products. Fifty-four percent value the convenience they offer, such as the ability to monitor and control their home from anywhere.

Reducing monthly bills and environmental benefits are also key motivators for consumers to install connected home products, with 38 percent pointing to reduction in home energy bills as a benefit of connected home products. Fifty-nine percent of Americans also indicated they worry about their energy consumption.

Consumers Remain Cautious, But Are Willing to Spend for Ease of Use

Despite growing awareness of connected home products like thermostats, Americans are concerned about keeping their personal information secure online (82 percent) and worry that the technology in their home will quickly become outdated (43 percent). Understandably, they are willing to pay extra for high quality electronics in their homes (63 percent). Americans just want the technology in their home to work well together (86 percent).

New Technology Disrupting Established Home Brands

When it comes to specific products in the home, Nest is gaining brand awareness in comparison to long-established thermostat companies. Asked which thermostats for the home come to mind, a growing number of Americans are naming Nest over established brands. Nest Thermostat unaided awareness grew from 6 percent in 2013 to 26 percent in 2016.

Awareness of connected home brands gradually increases with household income levels. However, across multiple income levels, more than half of Americans can name at least one connected home brand.

When asked which brands in the “connected or smart home” space came to mind, 21 percent named Nest as the top brand, while Apple takes second place with 12 percent of mentions and Samsung follows with 8 percent of mentions.

“Once viewed as luxury items, connected home products are now reaching mainstream consumers across all ages and incomes,” said Tom Bernthal, founder and CEO, Kelton Global. “What this study tells us is that the connected home space is heating up with a few important brands paving the way and more consumers than ever considering the benefits of embracing the connected lifestyle.”

Source: Nest / #SmartHome #Tech

More Stories

Get The Newsletter

Get The Newsletter

The latest multifamily industry news delivered to your inbox.