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Connected Home Adoption At The End of 2016 – Still in the Early Adoption Phase

by Jessica Ekholm  |  March 17, 2017  |  Submit a Comment

Adoption of newer connected home solutions is still at the early adopter phase, according to a recent survey that we did. We collected responses from nearly 10,000 online respondents in the U.S., the U.K. and Australia during the second half of 2016, and we found that only about ten percent of households currently have connected home solutions.

Connected home solutions consist of a set of devices and services that are connected to each other and to the internet and can automatically respond to preset rules, be remotely accessed and managed by mobile apps or a browser, and send alerts or messages to the user(s).

The survey found that home security alarm systems, the more established of connected home solutions, have nearly double the adoption rates (18 percent) of newer connected home solutions such as home monitoring (11 percent), home automation or energy management (9 percent), and health and wellness management (11 percent). Overall adoption rates were five to six percent greater in the U.S.

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However, excluding home security alarm services for which a monthly fee is generally paid, Gartner believe that solution providers may find monetizing connected services challenging as the survey revealed that less than half of households currently pay for subscription-based home monitoring and automation/energy management solutions.

In the U.S., where the home monitoring industry is more developed, 59 percent of households with a home monitoring solution indicate they do pay a monthly fee, thus proving they see value for these solutions. However, charging for subscriptions for home automation/energy management and health and wellness solutions is more or a challenge since more than half of current households are already using these services free of charge. The challenge is even greater in the U.K., where few home automation services are subscription based and 58 percent of households with home automation get their services free of charge.

Using a scale of 0 to 100, respondents were asked about their feelings and preferences toward the value of devices, appliances and applications in the connected home ecosystem. Three-quarters of respondents indicated they are happy to manually set temperature and lighting controls versus only one-quarter who expressed an interest in having devices anticipate needs in the home. Furthermore, 58 percent of respondents showed a preference for separate, independent, stand-alone devices.

However, respondents are starting to see the value of one app for integrating their connected home devices, appliances and services as well as the importance of brand certification for their connected home devices and services. More than half of the respondents (55 percent) rated 51 or more toward the preference of one app integrating connected home devices and services, while 58 percent rated 51 or more toward the importance of hardware and services being certified by a specific brand.

Messaging needs to be focused on the real value proposition that the complete connected home ecosystem provides, encompassing devices, service and experience. The emphasis need to be on how the connected home can helps solve daily tasks rather than just being a novelty collection of devices and apps.”

Read more about the survey here.. Survey Analysis: Connected Home Solutions Remain in the Early Adopter Stage

Category: connected-home  iot  smart-home  

Tags: apps  connected-home  consumer-apps  iot  smart-home  

Jessica Ekholm
Research Director
17 years at Gartner
19 years IT Industry

Jessica Ekholm works as a Research Director and leads the Key Initiative "Enhance the Technology and Service Provider Customer Experience." She focuses on personal digital services, connected home, mobile apps and disruptive players in the market. She works closely with service providers, device and network infrastructure providers, and app ecosystem players. Read Full Bio




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