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Reduced Home Renovations During COVID-19 Lockdown Impacting Smart Home Market
Smart Home Market Analysis and Commentary
30 Apr 2020 - Current social distancing and lockdown measures resulting in reduced home renovations will impact smart home device sales, according to an international consumer research study from Futuresource Consulting. The research, carried out in the USA, UK, France and Germany with a nationally representative sample of almost 4,000 consumers, found that home renovations are the leading gateway activity to prompt people to purchase smart home devices.
“Over half of advanced users – people with at least five smart home devices – told us they first began to explore smart home devices during DIY and renovation projects,” says Julian Issa, Senior Market Analyst at Futuresource Consulting. “As the home renovation market is impacted by ongoing lockdowns in major markets, we are likely to witness a significant dip in smart home devices sales across all major markets in Q2 2020.”
Comfortable Living and Making Life Easier Cited as Key Motivators
Across all four countries and all respondents, the top motivator for purchase was to make life easier, with other high-ranking factors that included making a home a more comfortable living environment, increasing security, saving time and improving efficiency.
“More than 90% of smart home device owners that we surveyed told us they are either extremely satisfied or very satisfied with their purchases,” says Issa.
Advanced Users Very Different to New Adopters
Smart speakers are driving the majority of growth in the space and acting as an entry point. Smart security products are also playing a defining role and appealing to more advanced users with five or more devices, who tend to skew towards a male, younger, higher income and urban profile.
Two in three advanced users are male, and three-quarters of them earn more than $40,000,” says Issa. “However, those just starting out on their smart home journey tend to be over 35 and earning less than $40,000. Yet, cost still remains a barrier to entry for many. Over half of non-adopters cited it as the main reason for holding back on a purchase, although this has dropped two percentage points since our previous round of research.”
Futuresource Consulting’s 86-page smart home consumer research report is the fifth consumer survey providing an insight into smart home devices and appliances. The report explores ownership, satisfaction, motivations, barriers and perceptions. Small and major domestic appliances are covered, alongside lighting, climate control, speakers, and security and monitoring, as well as a range of other devices. For further information on this report, please contact Jack Tammaro via firstname.lastname@example.org
Here at Futuresource Consulting we deliver specialist research and consulting services, providing market forecasts and intelligence reports. Since the 1980s we have supported a range of industry sectors, which has grown to include: CE, Broadcast, Entertainment Content, EdTech and many more.