As many states start to loosen shelter-in-place mandates, industry players are trying to understand the impact of the global pandemic on their respective markets. The COVID-19 pandemic and its economic impact are still largely evolving, and the industry and market response will continue to evolve as well.
We have seen a limited number of new smart home product releases in Q1 2020. This could indicate that smart device brands are operating their businesses conservatively as they navigate the uncertainties brought on by COVID-19 and the shelter-in-place mandates imposed by state and local governments. Many manufacturers are also struggling with supply chain interruption as a result of the public health crisis around the coronavirus, which also may be restricting product releases.
More than eight door lock brands announced pending product releases between Q4 2019 and CES 2020. However, only Kwikset and Level Lock have since released products. Tuya, Netatmo, and First Alert Onelink and more than eight other video doorbell brands announced pending product releases in 2019 or at CES 2020, but only Ring released a new product in the video doorbell category this year.”
Other product categories like smart garage door openers, smart thermostats, smart light bulbs, smart smoke detectors, smart water leak detectors, and smart water shut-off valves did not promote any product releases throughout the quarter.
Moving forward in 2020, consumers will be conservative about spending given the job losses and uncertain economy. Parks Associates data indicate that 75% of US broadband households report that they are cost conscious about spending right now, given the current economic climate. More consumers report being more cost conscious about spending than report being concerned about physical health, households financial stability, or mental health.
Despite these uncertainties, retailers such as Best Buy, Lowe’s and Home Depot have been offering sales on smart technology in hopes of tapping into stay-at-home lifestyles that can create a need for comfort and convenience while also enabling more DIY time due to restricted movement.
Parks Associates Smart Home Tracker tracks industry developments including product launches and market shifts in the smart home space. In addition, the report tracks adoption across more than 10 product markets.
Parks Associates is also tracking the impact of COVID-19 on consumer behaviors, attitudes, and intentions in the consumer and home technology markets throughout the year through its quarterly trending surveys.
