Smart Homes - US - January 2017


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Mintel

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Smart home product sales continue to represent a small slice of expenditures on the home despite sales growth leaving room for further expansion. This Report explores how consumers view smart home hardware and home security services, providing perspective on the obstacles to growth that are preventing wider adoption.

Table of Content

Overview

What you need to know
Definition

Executive Summary
The issues
Smart home not prioritized in spending
Figure 1: Manufacturer sales of smart home hardware, at current prices, 2012-17
Known brands more trusted than specialists
Figure 2: Top brands trusted to make smart hardware, October 2016
Even most popular products desired by minority
Figure 3: Interest in smart home hardware, October 2016
The opportunities
Seeing green
Figure 4: Saving energy as a moral good and interest in greening home, by location of home, October 2016
Safety moves indoors
Figure 5: Interest in indoor monitoring among caretakers of pets, elderly, and children, October 2016
Pets, kids propel new interest in security service
Figure 6: Subscription service drivers and usage – CHAID – Tree output, October 2016
Breakout products can shape market
What it means

The Market – What You Need to Know
Security reigns, but connectivity drives growth
Room for growth inside broader household spending
Indoor cameras and greening the home

Market Size and Forecast
Sales clear $7 billion in 2016
Individual products shape market
Figure 7: Manufacturer sales of smart home hardware, at current prices, 2012-17
Figure 8: Manufacturer sales of smart home hardware, at current prices, 2012-17

Market Breakdown
Security remains industry bulwark
Figure 9: Manufacturer sales of smart home hardware, by segment, 2016
Figure 10: Manufacturer sales of smart home hardware, by segment, 2012-17

Market Perspective
Total spend on homes dwarfs smart home hardware
Figure 11: Best- and worst-case forecast value sales of home and garden, at current prices, 2010-20

Market Factors
Pets, kids, elderly create interest in monitoring
Figure 12: Interest in indoor monitoring among caretakers of pets, elderly, and children, October 2016
Pet owners
Figure 13: Type of pet owned, June 2016
Households with children
Figure 14: Interest in smart home hardware by parental status and age of children, October 2016
Figure 15: Households, by presence and ages of own children, 2016
Elderly population growing
Figure 16: Population by age, 2012-22
Rising electricity costs restrained
Figure 17: Cost per KwH in US, 2010-15
Saving energy as a moral principle
In their own words:
Cultural divide in impression of conservation as a moral issue
Figure 18: Energy conservation and interest in greening the home, by location of home, October 2016
Figure 19: Energy conservation and interest in greening the home, by level of education, October 2016

Key Players – What You Need to Know
Samsung, Apple, LG most trusted brands
Newer brand names face uphill battle
Growth ahead for DIY security, indoor monitoring, voice interfaces

What’s Working?
Mobile hardware brands most trusted
Figure 20: Top brands trusted to make smart hardware, October 2016
ADT continues dominance in security
Figure 21: Home security service provider, October 2016

What’s Struggling?
Tough choices in creating new brand names
Figure 22: Second-tier of brands trusted to make smart hardware, October 2016

What’s Next?
Model smart homes
DIY installation
Figure 23: DIY vs professional installation for home security and automation, October 2016
Indoor monitoring
Figure 24: Lifestyle factors contributing to the need for indoor monitoring, October 2016
Voice control via digital assistants
Figure 25: Interest in voice control for TVs and stereos, October 2016
Humanizing digital assistants
Figure 26: Gatebox holographic digital assistant, December 2016

The Consumer – What You Need to Know
Remote monitoring for lights, cameras, thermostats
Younger adults see more value in remote monitoring
Smart homes not for everyone
Parents top target
Security service a discretionary purchase
Older, higher-income groups keen on efficiency

Interest in Remote Access
Limited demand for remote access
Figure 27: Interest in remote access to home appliances, October 2016
Age clearest determinant of interest in remote monitoring
Figure 28: Interest in remote access to home appliances, by age, October 2016
Figure 29: Interest in remote access to entertainment products and major appliances, by age, October 2016
Differences by race/ethnicity limited
Figure 30: Interest in remote access to home appliances, by race/Hispanic origin, October 2016
Highest-income households least interested in remote access
Figure 31: Interest in remote access to home appliances, by household income, October 2016
Parents keen on controlling appliances from phones, computers
Figure 32: Interest in remote access to home appliances, by parental status, October 2016

Interest in Owning Smart Home Products
Security, thermostats have greatest potential
In their own words:
Figure 33: Interest in smart home products, October 2016
Parents top target
Figure 34: Interest in smart home products, by age, October 2016
Figure 35: Interest in smart home products, by parental status and age of children, October 2016
Hispanics, urbanites show elevated interest
Figure 36: Interest in smart home products, by Hispanic origin, October 2016
Figure 37: Interest in smart home products, by location of home, October 2016

Attitudes to Energy-efficient Products
Efficiency worth premiums
Figure 38: Attitudes to energy-efficient products, October 2016
Older ages see more value in energy-efficiency
Figure 39: Attitudes to energy-efficient products, by age, October 2016
Figure 40: Attitudes to energy-efficient products, by race and Hispanic origin, October 2016
Experience matters
Figure 41: Attitudes to energy-efficient products, by household income, October 2016

Home Security Subscription
Service linked more to income than safety
Potential for growth in middle-income groups
Figure 42: Home ownership and subscription to a home security service, by household income, October 2016
Homes with pets and kids best option for expansion
Figure 43: Home security subscription service drivers and usage – CHAID – Table output, October 2016
Figure 44: Subscription service drivers and usage – CHAID – Tree output, October 2016

Appendix – Data Sources and Abbreviations
Data sources
Sales data
Fan chart forecast
Qualitative research
Consumer survey data
CHAID analysis methodology
Abbreviations and terms
Abbreviations

Appendix – The Market
Figure 45: Manufacturer sales of smart home hardware, at inflation-adjusted prices, 2012-17

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