Less than 30% of U.S. broadband households are familiar with where to buy smart home products or services, according to a Parks Associates study. Among these households, nearly 40% prefer to purchase these products at retail outlets, particularly home improvement stores.
“In addressing the low consumer awareness for smart home solutions, all players have ample opportunities to make inroads in this early market,” said Eddie Accomando, Research Analyst, Parks Associates. “Roughly 40% of the U.S. broadband households familiar with smart home products or services learned about them from TV or the Internet. In 2016 we are seeing smart home companies develop more robust TV and Internet consumer marketing strategies to reach the consumers who don’t know where to buy smart home products.”
The study notes that service providers, with the exception of home security providers, rate far behind retailers as the preferred channel for smart home products. Among U.S. broadband households familiar with the purchase channels for smart home products or services, 31% would prefer a home security provider, 23% would prefer an Internet service provider, and only 12% would prefer a pay-TV provider.
The report, 360 View Update: Go-to-Market Strategy for IoT: Consumer Insights,shows that smart home products and services will increase exponentially in relevance and adoption over the next decade. In 2016, 24% of U.S. broadband households plan to buy a smart lighting solution, such as smart light bulbs or smart in-wall outlets/switches, and 11% plan to buy a smart thermostat. Currently, 9% of U.S. broadband households own a smart thermostat, and 9% own smart lighting.
“To move the smart home from early adopters to the mass market, companies and industry players must address low consumer awareness,” Accomando said. “Even radio has a role in promoting smart home awareness—27% of current smart home owners found out about the companies that offer smart home products and services through the radio.”