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Innovation Insights: how widespread are smart home devices and what do consumers want from them in the future?

Innovation Insights is a monthly series on research world looking at all thing’s technological innovation. The series is based on several recent surveys with Arm (semi-conductor company valued at £23.4 billion) and will cover topics such as:

  • Security – will security concerns stifle technological and product innovation or simply lead to more secure products?
  • Insight driven innovation – what processes can be used to turn insight into innovation and how can insights into the way youths interact with technology be used to prototype software that assists and empowers them to tackle cyberbullying?

A smart home is a system containing multiple smart devices which automate the home’s functionality e.g. security, climate, lighting and entertainment. Smart home devices include smart: speakers, doorbells, security systems and thermostats. The global smart home market has nearly doubled in size since 2017. It’s predicted to be worth $53 billion by 2022.

Individual smart home device’s benefits vary. However, their overarching benefits are:

  • Convenience – e.g. smart speakers that allow you to entertain yourself simply by speaking
  • Security – e.g. live camera feeds of your home available on your smart phone
  • Cost-saving – e.g. automated lights which only turn on when it’s dark
  • Sustainability – e.g. smart showers that can only be turned on for a set period daily

But of the many smart home devices available, which are the most popular?

Smart TVs and speakers have the highest ownership

Globally, smart TVs/streaming sticks (31%), and smart speakers (24%) are the most owned smart home devices[i]. These are followed by smart lighting (13%), smart kitchen appliances (11%), and smart vacuum cleaners (9%). It’s no coincidence that the most owned devices such as smart TVs/streaming sticks/speakers are produced by big brands such as Apple TV, Amazon Firestick, Google Home. These brands have large budgets to spend on NPD and advertising – both of which drive sales and ownership.

Commonly owned smart home devices satisfy consumers

Generally, consumers are satisfied with their smart home devices. Smart lighting boasts the highest satisfaction (96% of owners are satisfied or very satisfied with their device).

High satisfaction though, is the norm not the exception – reflecting the smart home category’s growth. The following smart devices all generate 90% or higher consumer satisfaction: doorbells, TVs/streaming sticks, security alarms, vacuum cleaners, speakers and security cameras.

Smart home’s satisfaction and resultant growth correlates with AI’s growing use in consumer-facing devices. But do consumers welcome AI’s use within smart home devices?

AI’s use in smart home devices – the case for

Consumers welcome AI’s use in smart home products when it increases the convenience or safety of the owner. For instance, 69% of consumers would be comfortable with a smart home system predicting maintenance needs (e.g. a lightbulb failing). This reflects the human tendency to be cognitive misers and reduce the effort they apply in day-to-day life[ii].

Humans have a basic need for security. This is manifested in their feeling towards AI’s use – welcomed when it promotes security. But wary of it if there are potential security compromises. 64% of consumers would be comfortable with a security system listening for risk indicators (e.g. breaking glass, shouting or barking). Conversely, 50% of consumers feel uncomfortable with a smart door lock that can be opened by delivery drivers to put packages inside your house – a finding reflected in the concerned reaction to Amazon’s Key for Home.

AI’s use in smart home devices – the case against

Resistance towards AI’s use in smart home devices surrounds innovations which become too intrusive in consumer’s eyes.  A smart TV predicting adverts you may like based on your eye movements is discomforting to 43%, and a smart speaker sensing that you’re in a low mood and asking if you are okay would make 34% feel uncomfortable.

Consumers are discomforted at the thought that AI may know better than them. For example, 33% of consumers would be uncomfortable with a smart TV warning them they’ve been watching it for too long and 30% would be uncomfortable with a smart camera warning them their outfit isn’t suitable for the weather.

Reactance bias may explain why consumers display resistance to this type of AI. Humans don’t like being told what to do as it threatens their sense of freedom. Consumers therefore worry for their autonomy in the face of these uses of AI.

Next month we’ll cover technology misconceptions – how much do consumers really know about new innovations such as AI and 5G enabled products. Stay tuned.


[i] From a global sample of 750 people across 6 regions
[ii] All following %s from a global sample of 3,800 people across 8 regions

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