Demographics and Psychographics
- While most other age groups are motivated to purchase smart security systems proactively, the 18-34 age group is more likely to be motivated to purchase after a break in or attempted break in.
- Men are more likely to own smart home products than women. A recent study showed that 82% of men owned at least one smart home product compared to 49% of women.
- There is a strong correlation between environmentally conscious people and those who buy smart home products. One survey showed that 74% of people who are “very concerned” about climate change own a smart home product compared to 42% of people who are “not that concerned”.
- 78% of people who purchase smart home products prefer to set up new products themselves without speaking to customer service centers.
- Smart home products are frequently purchased by people who consider themselves to be tech-savvy. One survey showed that 26% of people decided to buy these products just to be considered an “early adopter of the technology”.
- Another statistic that shows that smart home consumers are comfortable with technology from the start is a survey that showed 46% of people who bought a smart home device never needed to contact customer service for help with the item.
1. Privacy Protection
- The protection of private information is a growing concern for people who own smart home devices. One study showed that 23% of people decided against installing smart devices in their home because they were concerned with how their information was being collected and shared by the device.
- This trend is being driven, in part, by various incidents where sensitive data has been hacked from smart home products, which highlights the need for more protection. One example is an incident where over 3,000 customers’ data was hacked from Ring smart doorbells.
- Google is an example of a company that is focusing on privacy concerns for smart home products. They have recently unveiled features that will allow consumers to have control over what data can be released to the company and be collected by their devices.
- Google also recently tightened their restrictions for third-party vendors. All vendors are now required to undergo security screenings before they will be allowed to connect with Google smart products.
2. Green Smart Home Products
- The current trend of health-related smart home products is starting to expand into products that create a healthy and environmentally-friendly home.
- Smart home products that allow users to go “off-grid” are becoming more popular as well, such as smart systems that monitor solar panels.
- One fact that is driving this trend is that homes are causing more environmental strain. One study showed that 34% of CO2 emissions in 2019 came from residential dwellings. So, people are looking for ways to reduce that number by lowering the impact from their own homes.
- Smart home devices are coming into play because people want to reduce their environmental footprint, but don’t want to track their energy consumption themselves. Smart devices are taking the load off of consumers by connecting multiple devices and analyzing data automatically.
- Smart thermostats are one of the more popular green smart devices. One example is the Nest thermostat from Google, which can analyze and memorize patterns to reduce the heat or air conditioning when nobody is home. The device also has a separate “Eco” mode.
- Telsa offers a “Powerwall” that monitors a home’s energy usage and connects to solar panels to collect data. The system connects to an app that allows users to change settings to optimize the system for goals like saving money, energy, or managing power outages better.