41% of US Households Intend Purchasing Smart Home Device

Recent research just released by Parks Associates shows that 41% of US broadband households have plans to purchase a smart home device within the next 12 months. This includes 27% who have high purchase intentions.

Popular devices include thermostats and lightbulbs, as well as smart smoke and CO2 detectors. Parks Associates is an international research firm and it predicts US broadband households will purchase almost 55 million smart home devices in 2020.

Speaking ahead of the company’s CONNECTIONSTM Summit which is due to take place in January in Las Vegas, Elizabeth Parks, EVP, Parks Associates said “Consumer intentions to buy smart home products are strong, but there are multiple steps the industry can take to turn these intentions to reality. At CONNECTIONSTM Summit, we will discuss strategies educate consumers, reduce price sensitivity, and enable new use cases regarding smart home products, including innovations that will reduce costs and enhance value propositions in new platforms.”

Additional Parks Associates research discovered that 60% of broadband households within the US with insurance are interested in smart home products that can detect and notify or which can prevent damage or loss from water, fire or theft. Approximately three-quarters of US broadband households with insurance and who are interested in smart home products would be willing to let these devices automatically communicate with insurance companies. More than a third of consumers who are thinking of purchasing smart home device would find a recommendation from an insurance company as being “very important.” This highlights the fact that the security industry is the largest channel for smart home systems and is a strong channel for numerous smart product categories which include networked video cameras and door locks.

The introduction of newer and more economical security systems that can be fitted by homeowners is a key step in expanding the security market. Top players include Samsung, Ring, ADT and Nest. According to Parks Associates, the introduction of new smart DIY solutions would help invigorate the adoption of home security, particularly amongst younger users. According to the research company, some 37% of smart home device owners cite security as being the main reason they purchased a smart home device and nearly 30% made their purchase to monitor their home while they are away.