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Number of Households with Smart Home Devices Increases

September 30, 2015

It seems that the smart home is finally beginning to hit its stride. More and more devices that can connect to the home have been finding their way into the market. According to BI Intelligence, a research service from Business Insider, there are currently about 1.9 billion devices. Over the next three years, that number is predicted to rise to as high as nine billion.

Since 1986, Parks Associates has been recognized as a market research and consulting company that specializes in emerging consumer technology products and services. A recent report from the research firm shows that there has been an increase in the overall adoption of smart home devices.

The report, titled “Smart Product Adoption,” evaluates the trends in smart product adoption, assesses consumer preferences for different channels to market, and identifies the impact of demographic attributes on adoption of smart home products.

In a multiyear study, the second quarter of 2014 showed that 13 percent of U.S. broadband households were using smart home devices. One year later showed the percentage had increased to 18 percent in the second quarter of 2015.

While acceptance has increased and people are more willing to use smart home devices, there is still some concern as to the best place to acquire them.

 One of the first devices that people consider is a home security system, especially one that allows them to monitor different aspects of the home. It should come as no surprise that people wanting to equip their homes are more comfortable going to a security dealer. According to Parks Associates, 24 percent of people shopping for networked security and monitoring cameras, as well as 16 percent who are shopping for smart door locks, would prefer to acquire them from a security dealer.

Image via Shutterstock

On the other hand, users looking for lower-stakes smart home equipment such as the Roomba, smart light fixtures, and indoor cameras are very comfortable going through a retail channel.

As consumers begin to get a better understanding of smart home devices and their markets, we will see a greater acceptance of those devices. As Tom Kerber, director of research, home controls and energy at Parks Associates said, "Consumer familiarity with smart home products and services is low. Therefore, manufacturers and service providers must educate consumers on the capabilities and benefits of smart home solutions. Channels seeing the most success are those that are able to connect with consumers and can provide an interactive discussion where consumers can ask questions to fully understand the capabilities and benefits."

The trend shows that over the next four to five years more smart home devices will find their way to market. It also shows that consumers are finally beginning to feel comfortable enough to invest in them.

Edited by Kyle Piscioniere

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