LONDON, October 27, 2015 /PRNewswire/ --
A new research from CP Consulting, a business intelligence and consulting firm specializing in financial services, reveals the latest attitudes of UK consumers towards Connected Home products [1].
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Almost 50% of UK Consumers are Planning to Buy a Connected Home Product
The global market of Connected Home is going to reach inflexion point by the end of 2016, with 700 million connected homes expected by 2020 [2] with the UK being a key market.
According to CP Consulting's latest research 'Connected Home: Consumers' Attitudes Towards the Connected Home in the UK', 47.6% of UK consumers aged 25 to 44 are planning to buy at least one Connected Home product over the next 12 months, compared to 54% of consumers in the USA [3].
"The market of Connected Home is starting to open up to early adopters in the UK. Half of our respondents are in fact planning to buy at least one product within the next 12 months", comments Carlo Palmieri, MD at CP Consulting. "The attitudes of early adopters towards the Connected Home appear to be positive and the level of expectations increasing. It is important that expectations are met or even exceeded to ensure positive word-of-mouth and further adoption."
Saving Money on Energy Bills and Remote Control are Top Priorities for UK Consumers
Around half of those UK consumers planning to buy at least one product will do so primarily to save on energy bills, monitor their homes remotely and increase their safety.
Only a minority of respondents are planning to buy a Connected Home device to control their TVs, to enjoy or improve their home entertainment systems.
According to a similar survey in North America, US consumers are more concerned about personal and family security with over 90% mentioning security as a key reason to purchase a device [3].
Smart Thermostat and Smart Home Hub at the Top of UK Consumers' List
The Smart Thermostat and the Smart Home Hub are at the top of UK consumers' shopping list, followed by Lighting and Camera. The Smoke Detector is at the bottom of this list with only 23% of preferences (see Graphic below).
"The fact that the Hub is at the top of the list might indicate that UK consumers understand the modular concept of the Smart Home as they purchase the Hub first and then build their Connected Home around it over time. Hub manufacturers should focus on winning the heart of consumers now," says Mr Palmieri.
On their first purchase, almost 50% of respondents are planning to spend between £100 and £299, about one-third up to £100, and 20% between £300 and £499. Only a small minority is prepared to spend more than £500. These results are consistent with the current pricing in the UK where a £250-300 budget allows consumers to buy between 2 and 5 products.
Some UK Consumers Are Still Unconvinced of the Need for Connected Home Products
Of the UK consumers not planning to buy any products in the next 12 months, 55,2% does not feel the need for Connected Home devices, 41.6% think that devices are too expensive and 22.9% are concerned about their privacy.
"Unsurprisingly, at this point in time, a wide segment of the UK population still needs to better understand the product offering and be convinced of the benefits of the Connected Home," continues Mr Palmieri. "To help consumers understand their offerings, manufacturers in the USA have ramped up their investments in advertisement [4] whilst retailers have created dedicated floor spaces at point of sale as well as "concept" stores [5]. To further increase consumer adoption of Connected Home products in the UK, retailers and manufacturers need to follow a similar approach, investing more in advertisement, marketing and point of sale initiatives," concludes Mr Palmieri.
Notes to editors
Connected Home: Consumers' Attitudes Towards the Connected Home in the UK' is a research based on a survey conducted by CP Consulting in October 2015 with a sample of 500 respondents in the age range of 25 to 44 years old. The research analyses attitudes of both likely buyers and non-buyers, segmenting the results by age group, gender, location, education, income and household structure.
CP Consulting (http://www.cpconsul.com) is a London-based consulting and market research company specializing in financial services and insurance in particular. It provides clients with information and strategic insights about major issues in financial services with focus on distribution, innovation and operating models.
[1] Connected Home refers to a home where appliances and devices are connected to each other through the Internet, Bluetooth, Wi-Fi or a local Ethernet and that can be operated by a smartphone, tablet or any other computer.
Smart Home is the next level in evolution with an integrated level of device interconnectedness. A Smart Home is a "Connected" Home - and not vice versa - encompassing three additional aspects:
[2] Source: Market Trends: The Battle for the IoT Gateway in the Connected Home by Gartner.
[3] Source: 2015 State of the Smart Home Report by iControl Networks
[4] Source: Connected Home: Implications for Insurers by CP Consulting
This research was published in October 2015 combining an in-depth analysis of "Connected Home" and "Smart Home" with a review of Connected Home insurance products (or partnerships) related to Home Insurance. The study identifies over 15 products and partnerships already available on Connected Home Insurance with an analysis of key characteristics, opportunities and threats and an assessment of options available to general insurers. It also provides a short and medium-term estimate of the Connected Home Insurance market in the United States, United Kingdom, France, Germany, Italy and Spain.
You can view this research press release here
[5] An example of "concept" store in the USA is Target Open House, available at http://openhouse.target.com
Media contact
Roberto Napolitano, roberto.napolitano@cpconsul.com
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