Monday, May 10, 2021

Lower prices could add nearly eight million more US broadband households into the smart home market

A new industry report from Parks Associates reveals that among the 42% of US broadband households who do not own and do not plan to buy a smart home device, 17% admit they would likely buy a device if the cost were lower. Capturing these consumers at the right price point would add 7.9 million more households to the population of smart home owners. The report, Breaking Smart Home Barriers: Why Consumers Don't Buy, addresses market barriers and mines consumer fears and presents strategies for addressing or alleviating their concerns in order to expand sales.

“Price is a major barrier to smart home adoption, especially among younger heads of household, who recognize the value but feel priced out of the market,” said Patrice Samuels, Senior Analyst, Parks Associates. “Reducing price while still offering important features is a valuable strategy, with WYZE and Yi Home taking this route. Nest, eufy, and Blink have all released lower-priced versions of their products that include fewer features at a more affordable price.”

Incentives to Drive Smart Home Consumer Purchases - Parks Associates

In Parks Associates’ Q4 2020 survey, affordability ranks as the most important purchase consideration among purchase intenders. Discounting product prices and bundling products in ways that strengthen value are critical strategies to attract the majority of consumers who rank affordability in their top three purchase considerations. Bundling of smart home devices such as smart plugs, smart light bulbs, or smart thermostats with a smart speaker can introduce the smart home experience to consumers through a leading entertainment device that can be used to stream music and control smart home functions.

More than 50% of US broadband households who do not own or intend to purchase a smart home device report they do not see any benefits to smart home ownership, although this attitude is more prevalent among older consumers.

"Messaging that highlights strong product value helps overcome price sensitivity and counters the perceived lack of a viable value proposition,” Samuels said. “Familiarity with devices is increasing, but value perception is not. Brands must emphasize pragmatic value propositions such as energy savings, loss prevention, and safety to persuade the broad swatch of broadband households that do not see any benefit or value in owning smart home devices.”

Breaking Smart Home Barriers: Why Consumers Don't Buy analyzes factors that contribute to winning companies’ success and projects how current trends may shape future adoption. For more information or to view the Table of Contents, contact sales@parksassociates.com.

To schedule an interview with an analyst or to request specific data, please contact Rosey Ulpino at rosey.ulpino@parksassociates.com or 972-490-1113.

About Parks Associates: Parks Associates, a woman-owned and woman-led internationally recognized market research and consulting company, specializes in emerging technology solutions serving the consumer and small to medium business (SMB) markets. Celebrating its 35th year in 2021, Parks Associates is a partner to companies navigating the changing consumer technology landscapes through data-driven market insights, extensive consumer and industry intelligence, custom marketing services, and executive networking experiences and conferences.

The company's expertise includes home automation, control systems and security, digital media and platforms, entertainment and gaming, home networks, internet and video services, connected health and independent living solutions, mobile applications and services, support services, consumer electronics, and energy management solutions.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit, Smart Energy Summit: Engaging the Consumer, and Future of Video: OTT, Pay TV, and Digital Media. http://www.parksassociates.com

Next: DIY installation of security systems has increased nearly 40% since 2018
Previous: Lights, thermostats, and cameras among top devices consumers want to control via voice

Comments

    Be the first to leave a comment.

Post a Comment

Have a comment? Login or create an account to start a discussion.

© 1998-2021 Parks Associates. All Rights Reserved.