2021
9
UK The Connected Home Market Report 2021
2021-07-01T04:07:15+01:00
OX1050291
2195
139894
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Report
en_GB
“The Matter protocol will bring seamless connectivity between connected home products, regardless of brand or voice assistant, making buying and using these devices much easier. With consumers keen to use…

UK The Connected Home Market Report 2021

£ 2,195 (Excl.Tax)

Description

Providing the most comprehensive and up-to-date information and analysis of the UK Connected Home market, including the behaviours, preferences and habits of the consumer.

Over half (56%) of people would buy a smart home device to live more sustainably. Smart thermostats are often the device most associated with this; however, products like the TP-Link Kasa Mini help with sustainable living. This is a smart plug that monitors the energy usage of the appliance that is plugged into it, and 83% of consumers interested in smart plugs would buy smart home devices to live more sustainably.

The overall smart home market has been boosted by the lifestyle changes from COVID-19, with ownership of all connected home products increasing between March 2020 and March 2021. Older Millennials are expected to be key to the market’s long-term success as they are the most likely (66%) to say that spending time at home during COVID-19 has made them more likely to buy smart home devices. With a section of them intending to work from home in the long-term, this should help the overall connected home market.

Privacy with voice-controlled speakers remains a concern for a section of consumers. Some 37% of people without a speaker say having more control over how their data is used would encourage them to buy one, despite there already being several key data management features offered. Something that could help ease these concerns is getting regular emails, for example, once a week, detailing every interaction with a voice assistant, instead of manually finding this history in an app.

As part of the Matter internet protocol, the key smart home manufacturers are also trying to make devices at home interact more seamlessly, regardless of brand or voice assistant. This could open up possibilities for features like a voice-controlled speaker notifying a person when a smart thermostat or smart plug has consumed a lot of energy, which would appeal to people trying to live more sustainably.

Read on to discover more details or take a look at all of our UK Household, House and Home market research.

Quickly understand

  • The short, medium and long-term impact of COVID-19 on ownership and interest in connected home products.
  • Type of voice-controlled speaker owned at home and which features are most important to consumers who have one or are interested in buying one.
  • How consumers have used their voice-controlled speakers since COVID-19 and how these services could be developed to provide even greater functionality.
  • The potential impact of the Matter protocol on the market and what a seamless connected home experience means for consumers.
  • Connected home market.
  • Connected home market data.

Covered in this report

Brands: Ezlo, Huawei, Amazon, Google, SmartThings, Zigbee, Fitbit.

Expert analysis from a specialist in the field

Written by Zach Emmanuel, a leading analyst in the Technology sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The Matter protocol will bring seamless connectivity between connected home products, regardless of brand or voice assistant, making buying and using these devices much easier. With consumers keen to use connected home devices to live sustainably, it could be appealing to get notifications on high energy usage from smart thermostats and smart plugs all through the same voice-controlled speaker.

Zach Emmanuel - Research AnalystZach Emmanuel
Consumer Technology Analyst

Table of Contents

  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Products covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on the connected home
      • Figure 1: Short, medium and long-term impact of COVID-19 on the connected home, 19 May 2021
    • The market
    • Interest in voice commands grows to aid connected home market
    • Ezlo platform gives first look at unified smart home experience
    • Connectivity Standards Alliance starts Matter protocol
    • Companies and brands
    • Google launches second-generation Nest Hub with a focus on sleep tracking
    • Amazon’s new Echo Show 10 features a rotating screen
    • The Amazon Echo is people’s most-used speaker
      • Figure 2: Ownership of voice-controlled speakers in the household, March 2021
    • The consumer
    • COVID-19 drives growth in ownership of all connected home devices
      • Figure 3: Ownership of connected home devices, March 2019-March 2021
    • Older Millennials have been driving interest in connected home products
      • Figure 4: Interest in buying connected home devices, March 2019-March 2021
    • Older generations are more likely to prioritise the brand of voice assistant
      • Figure 5: Most important features in a voice-controlled speaker, March 2021
    • Older Millennials are driving the use of voice-controlled speakers for work
    • Over a third of voice-controlled speaker owners use it to improve mental or physical wellbeing
      • Figure 6: Use of voice-controlled speaker for work or improving wellbeing, March 2021
    • Over half of people would buy smart home devices to live sustainably
    • COVID-19 lockdown has encouraged consumers to buy smart home products
    • Consumers without voice-controlled speakers would like greater privacy controls
      • Figure 7: Attitudes towards smart home devices, March 2021
  3. Issues and Insights

    • How COVID-19 is shaping the connected home market
    • Changes to ownership and interest
    • Marketing smart displays for work is most suitable for Older Millennials
    • Using voice-controlled speakers to improve physical and mental wellbeing
    • Social gaming on smart displays could appeal to families
  4. The Market – Key Takeaways

    • Growth in usage of voice commands compared to pre-COVID-19
    • Ezlo platform provides universal control of Zigbee smart home devices
    • CSA announces Matter protocol with products set to be certified this year
  5. Market Drivers

    • Impact of COVID-19 on the connected home
      • Figure 8: Short, medium and long-term impact of COVID-19 on the connected home, 19 May 2021
    • Interest in voice commands grows to aid connected home market
      • Figure 9: Usage of voice commands in previous three months, January 2019-February 2021
    • Ezlo platform gives first look at unified smart home experience
    • Links to Zigbee Alliance
    • Connectivity Standards Alliance starts Matter protocol
    • Clarity for consumers can only help connected home market
  6. Companies and Brands – Key Takeaways

    • Google provides sleep insights with Nest Hub
    • Potential privacy concerns over rotating Amazon Echo Show 10
    • Difference between ownership of Apple HomePod and it being the main home speaker
  7. Launch Activity and Innovation

    • Google launches second-generation Nest Hub with a focus on sleep tracking
    • The appeal of sleep tracking
    • Fitbit integration
    • Amazon’s new Echo Show 10 features a rotating screen
    • Privacy concerns and brand perceptions
    • Signify releases Philips Hue smart light strip for TVs
    • Miscato’s Aromeo combines lighting, sounds and smells in a smart diffuser
    • Direct Smarter announces All-In Sensor with 18 detectors built-in
  8. Advertising and Marketing Activity

    • Amazon’s drop in advertising spend potentially linked to greater social media focus
    • Greater advertising of Alexa brand
    • Possibly greater focus on social media
    • Rise in digital advertising
      • Figure 10: Total above-the-line, online display and direct mail advertising expenditure on connected home devices by category, 2017-20
      • Figure 11: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, Top 10, 2020
      • Figure 12: Total above-the-line, online display and direct mail advertising expenditure on connected home devices, by share, 2020
    • Nielsen Ad Intel coverage
  9. Brand Ownership – Voice-controlled Speakers

    • Consumers likely to select an Amazon Echo as their most-used speaker
    • Data could point to high take-up of HomePod Mini
      • Figure 13: Ownership of voice-controlled speakers in the household, March 2021
  10. The Consumer – Key Takeaways

    • Social gaming experiences with smart displays could appeal to families
    • People could be interested in getting notifications on high energy use as they look to live more sustainably
    • Getting regular summaries of voice assistant usage could further ease privacy concerns
  11. Impact of COVID-19 on Consumer Behaviour

    • COVID-19 drives growth in ownership of all connected home devices
    • High-resolution smart doorbells likely to appeal to dual-parent families
      • Figure 14: Ownership of connected home devices, March 2019-March 2021
    • Older Millennials have been driving the interest in connected home products
      • Figure 15: Interest in buying connected home devices, March 2019-March 2021
      • Figure 16: Interest in buying connected home devices (Older Millennials), March 2019-March 2021
      • Figure 17: Influence of COVID-19 in intention to buy connected home devices, March 2021
    • Older Millennials driving use of voice-controlled speakers for work
      • Figure 18: Ownership of a smart display, March 2021
      • Figure 19: Usage of voice-controlled speaker for work or studying, March 2021
    • Over a third of voice-controlled speaker owners use it to improve mental or physical wellbeing
    • Predictive assistants can be applied to mindfulness or exercise apps
      • Figure 20: Use of voice-controlled speaker to improve wellbeing, March 2021
  12. Most Important Features of Voice-Controlled Speakers

    • Older generations are more likely to prioritise the brand of voice assistant
    • Speakers with a camera appeal to dual-parent families more than other demographics
    • Social gaming experiences on smart displays
      • Figure 21: Most important features in a voice-controlled speaker, March 2021
  13. Smart Home Attitudes

    • Over half of people would buy smart home devices to live more sustainably
    • Notifications on energy usage could appeal
    • Consumers without voice-controlled speakers would like greater privacy control
      • Figure 22: Attitudes towards sustainability and smart speaker privacy, March 2021
  14. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Consumer research methodology

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

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