Gartner Survey Shows Connected Home Solutions are Still at Early Adopter Stage



A survey by Gartner Inc. has shown that adoption of new connected home solutions is still at the early adopter phase. The survey included nearly 10,000 online respondents in the US, Australia, and the UK during the second half of last year.

It found that just 10% of households currently have connected home solutions that typically consist of a set of devices and services that are connected to each other and to the Internet. These devices can automatically respond to preset rules, may be managed remotely and accessed by mobile phones or a browser. They can also be programmed to send alerts or messages to the user.

Amanda Sabia, principal research analyst at Gartner said “Although households in the developed world are beginning to embrace connected home solutions, providers must push beyond early adopter use. If they are to successfully widen the appeal of the connected home, providers will need to identify what will really motivate current users to inspire additional purchases.”

 

Currently, the survey found that home security systems which are one of the more established connected home solutions have nearly double the adoption rates at 18% compared to newer connected home solutions such as home monitoring at 11%. Adoption rates for home automation or energy management were found to be at 9%, while health and wellness management was 11%. Overall, adoption rates were about five or 6% higher in the United States where these solutions were first marketed.

One thing highlighted by the survey was that if home security alarms where the householder pays a monthly fee are excluded, solution providers may find difficulty in monetizing connected services. The survey found that currently less than half of households pay for subscription-based home monitoring and automation/energy management solutions. However, in the US where the home monitoring industry is more developed, 59% of households do pay a monthly fee showing they find value in these solutions. Charging subscriptions for home automation and energy management or for health and wellness solutions would be more challenging. At the moment, more than half of households are already using these services for free.

In the UK, the challenge is even greater as few home automation services are subscription based and more than half of households using the services do so free of charge. The survey also found that respondents are beginning to see the value of having just one for integrating their connected home devices, services, and appliances.

Allison Halliday About Allison Halliday

Allison Halliday is a Realty Biz News contributing writer. She handles International Real Estate and is a seasoned blogger.

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