Consumers sharp focus on value means relatively inexpensive and more essential smart home devices, such as smart security cameras or carbon monoxide detectors, will be the primary focus for the smart home technology market. As finances improve, consumer attention will shift to pricier devices such as smart appliances.
Four-fifths of consumers have some sort of smart device at home. However, there is limited awareness of the full breadth of smart home capabilities, including the ability to control devices remotely, which could serve as some barriers to adoption in the smart home tecgnology market.
The damage that the cost of living crisis has inflicted on many households’ finances means a laser focus on value will persist, requiring brands to strengthen their value proposition especially as the smart home space becomes increasingly crowded. Additionally, many consumers worry that digital smart home devices leave people vulnerable to outside attacks and over a third find it frustrating to get smart home devices to work together, pointing to some other deterrents to using smart technology within the home.
The strides made in integrating Generative AI into smart home technology and efforts to improve interoperability will simplify device control and automation, while providing more flexibility in purchasing devices, thereby attracting engagement with the smart home sector.
For the purposes of this Report the labels ‘smart’ and ‘connected’ refer to a family of features, including home automation and adaptive behaviour powered by machine learning; connectivity with other devices (including, but not limited to, a user’s smartphone) via various protocols (including Wi-Fi and Bluetooth); and providing users with data on device usage (eg energy consumption data).
Devices referred to as ‘smart’ and/or ‘connected’ may have some but not all of these features. The connected home products included within the scope of Mintel’s consumer research for this Report are:
Readers of this report may also be interested in our UK Future of Technology Market Report, or our range of Technology Market Research.
Sam joined Mintel in November 2022 as a Retail Analyst with a focus on Home Retail. Her previous work experience includes working as a Research Manager for The Insights Family – a market research agency specialising in the kids and family ecosystem. She holds an MSc in Marketing from Nottingham Trent University.
Improved cross-brand compatibility and Generative AI will streamline device control and automation, playing a pivotal role in attracting consumers to the market.
Sam Nguyen
Retail Analyst
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