Adoption of Connected Home Solutions Remains Limited to Early Adopters, Gartner Finds

Adoption of newer connected home solutions is still at the early adopter phase, according to a recent survey by Gartner. The survey, of nearly 10,000 online respondents in the U.S., the UK and Australia during the second half of 2016, found that only about 10 percent of households currently have connected home solutions.

Connected home solutions consist of a set of devices and services that are connected to each other and to the internet and can automatically respond to preset rules, be remotely accessed and managed by mobile apps or a browser, and send alerts or messages to the user(s).

"Although households in the developed world are beginning to embrace connected home solutions, providers must push beyond early adopter use," said Amanda Sabia, principal research analyst at Gartner. "If they are to successfully widen the appeal of the connected home, providers will need to identify what will really motivates current users to inspire additional purchases."

The survey found that home security alarm systems, the more established of connected home solutions, have nearly double the adoption rates (18 percent) of newer connected home solutions such as home monitoring (11 percent), home automation or energy management (9 percent), and health and wellness management (11 percent). Overall adoption rates were five to six percent greater in the U.S., where they were first marketed.

However, excluding home security alarm services for which a monthly fee is generally paid, solution providers may find monetizing connected services challenging as the survey revealed that less than half of households currently pay for subscription-based home monitoring and automation/energy management solutions.

In the U.S., where the home monitoring industry is more developed, 59 percent of households with a home monitoring solution indicate they do pay a monthly fee, thus proving they see value for these solutions.

However, charging for subscriptions for home automation/energy management and health and wellness solutions is more of a challenge since more than half of current households are already using these services free of charge. The challenge is even greater in the U.K., where few home automation services are subscription based and 58 percent of households with home automation get their services free of charge.

(For more information visit www.gartner.com)