July 28, 2014: Younger Consumers Leading Adoption of Smart Home Products
Smart Thermostats, Smart Lighting, and Smart Appliances Entering the Market in Growing Numbers
DALLAS — New research from Parks Associates shows young consumers, those with children, and those in a home for three to four years are leading the adoption of Internet-connected smart home energy management devices. The firm’s Home Energy Management Adopters study reveals more than 10 percent of U.S. broadband households headed by a consumer aged 25-34 own at least one smart home energy management device, compared to 7 percent of all U.S. broadband households. Further, 9 percent of households with children and over 10 percent of households who have been in their home three to four years own a smart energy management device.
“Younger consumers also own multiple devices at higher rates — 4 percent own five or more smart energy management devices, and they are the majority of those most willing to purchase a smart home system,” said Tom Kerber, director, research, Home Controls & Energy, Parks Associates. “The market segment of consumers 25-34 years old is a key target for new smart home solutions that consolidate control of multiple devices through a smartphone or tablet.”
The entry of major service providers such as ADT, AT&T, and Comcast is helping to increase consumer awareness and adoption of smart home solutions. Product lines from major retailers such as Staples, which recently announced its new Staples Connect™ solution, and Lowe’s, with its Iris brand of products, will increase competition in this space as they introduce products to their large base of consumers.
Smart energy management products provide remote alerts and status updates to consumers, who can then access and control the device from a smartphone or other mobile device. Parks Associates said smart thermostats, smart lighting, smart plugs and power strips, and smart appliances are all entering the market in growing numbers.
“Seven percent of U.S. broadband households plan to purchase a smart thermostat over the next 12 months, but our findings show consumers clearly prefer smart home systems with extended capabilities that integrate multiple devices,” Kerber said. “Stand-alone products are getting the early attention in this emerging market, but the successful solutions long-term will be able to work together as part of a smart home system.”
For more information, visit www.parksassociates.com.
Publication date: 7/28/2014