Will consumers ever adopt the smart home?
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Smart homes can automate every aspect of our lives at home. So what’s holding consumers back from fully adopting the smart home?
The adoption of smart devices exploded during the COVID-19 pandemic. Americans more than doubled the number of connected devices in their homes in 2020, and now the average household has about 25 smart devices. Adoption of the smart home, however, is a little slower.
Smart devices, or the Internet of Things (IoT), are internet or network-enabled devices that automate processes. Your smart speaker can play your favorite song via voice command, for example. The smart home takes it a step further. A smart home automates all the processes in a home. The lights turn on when a car comes up the driveway. Or the smart mattress optimizes the amount of support you need for a perfect night’s sleep.
Consumers are definitely interested in smart devices. In a recent Suzy survey, we asked 1000 consumers the types of new technology they’re most interested in integrating into their homes. Smart devices were right at the top of the list.
34% wanted security devices, like smart locks and security cameras
30% wanted smart speakers, smart refrigerators, and smart TVs
28% wanted smart devices to help reduce their energy consumption
26% wanted smart devices to help them clean, like a robot vacuum cleaner or lawnmower.
Despite their interest in individual devices, consumers are enthusiastic about smart homes. The technology sounds good in theory, but the convenience (and novelty) isn’t enough to sway consumers into full adoption yet. In the same Suzy survey, nearly half (44%) said they weren’t interested in converting their homes to smart homes. 22% said they weren't interested at all.
What’s preventing smart home adoption?
To understand why consumers are hesitant when it comes to smart home adoption, we decided to run another survey. Using the Suzy platform, we retargeted the same consumers who said they weren't interested in smart homes. Here are their main concerns:
1. Security and privacy
Over half (54%) of respondents worried about privacy, and 40% were concerned about how their data would be used. Given some of the (scary) headlines about smart home hacking, that’s not surprising.
IoT devices connect to the internet or to other networks, like Bluetooth. A weak or compromised WiFi password can leave them vulnerable to hacking. Some have little or faulty security built-in. If one device gets hacked, the other smart devices on the network may also be in trouble.
Smart home device hacks can leave personal and financial data exposed. Even without a hack, smart devices may be sharing more data than consumers want them to. That’s because these types of devices are always listening or watching. Voice search records (even private ones) can be reviewed by entities like Google. Device data can even be subpoenaed by law enforcement. That’s hardly a good selling point for smart homes.
2. Cost
Buying one or two (or 25) smart devices is within budget for most Americans. But fully integrating a home can add up—fast. Bigger ticket items, like smart appliances or window treatments, typically cost much more than their traditional counterparts. GearBrain’s hypothetical DIY setup comes in at $15,000. Hiring a pro to automate the entire home is even more expensive, ranging up to $150,000 for a custom install.
3. Operation
Other consumers weren’t sure about the technology itself. Some believe that smart devices are unreliable (20%), while others found the technology confusing (20%). 18% said they weren't sure how to control smart devices.
Smart home devices don’t use standard operating systems, which means they don’t always play well together. A Google Home might not work with a Bluetooth-powered smart plug. When a consumer asks their smart speaker to turn on the lights and it doesn’t work, they can quickly get frustrated and disillusioned with smart devices in general.
How brands can address consumer concerns about smart homes
To encourage the adoption of smart homes, brands need to take steps to ease consumers’ minds and fears.
Be transparent about data collection and educate consumers about security.
Address potential cost savings. Many smart devices actually help users save money down the road.
Make devices play together well. Create detailed guides for consumers that want to integrate smart technology into their homes.
Moreover, male consumers are slightly more interested in smart homes than female consumers (42% to 32%). Younger consumers were also more interested in the technology than older consumers, with 29% of 13-17 year respondents indicating high interest. On the flip side, 33% of consumers 65 and up were “not at all interested”. Brands should keep high-interest demographics in mind as they develop products and marketing strategies.
