News: Nearly one million extra homes have become smarter over the last 12 months.
There are four million UK households with some form of smart home system, an increase of 30% on top of last year’s 3.07 million homes.
14% of homes across the land are now dubbed as smart with an average smart home spending £256 on technology, equating to a market size of £940 million.
The smart home study conducted by Strategy Analytics has also found that six distinct UK consumer segments to target in the smart home market. However, only three are realistic for purchasing smart home systems and services.
The largest group (11% of UK consumers) is made of ‘impressers’ which the company labelled as slightly younger females on a higher income looking for connected device households with a big skew in interest for motion sensing camera tech.
Secondly, are the ‘millennial males’ (9%) under 35, more likely not to have children and live in flats, also with anin interest for motion sensing camera technology.
The third group smart home marketers should be looking at is the ‘green nesters (8%): married families owning multiple smartphones and tablets with a much greater interest in smart home technology around occupancy-sensing systems for lights and heating.
The remaining three groups – less likely to tap into the smart home segment at the moment – include ‘pragmatists’ (40% of the population), the ‘frugal nesters’ (23%) and ‘practical greens’ (9%).
The study has also concluded that UK consumers are most willing to pay for notifications about potential hazards and emergencies in their home (10% to 11%) followed by a system that can automatically shut off the water in case of a leak and remote video monitoring (both 9%).
Bill Ablondi, Strategy Analytics’ Director, Smart Home Strategies, said: "After the initial hype, there seems to be a degree of negativity about the genuine opportunity for smart home technology, particularly around how many households are likely to use it.
"We believe that home monitoring is a bigger draw if priced right. Service providers could spur the market with free basic monitoring and notification services bundled with their other services and then offer several levels of premium capabilities for additional fees.
"Insurance firms could do the same. Security service providers are well-positioned to offer self-monitoring and automation capabilities on top of their current services."
Looking ahead, Ablondi said that technology advancements in enhanced visual and voice recognition coupled with cognitive computing on a chip will introduce new value propositions stimulating consumer demand.
He said: "Data analytics for predicting failure in heating systems and major appliances will become an extension of the maintenance contracts retailers, energy providers and manufacturers offer. We are on the cusp of the next big thing in consumer adoption of digital technology."