Smart Home Market Expands as Lower-Income Households Embrace Technology – CEPro
The leading barrier to smart home product adoption has long been perceived as a lack of affordability; however, manufacturers are successfully penetrating lower-income households with more affordable models of connected devices, according to new research by Interpret. In fact, the current trend shows smart home devices are continuing to increase in functionality and ease-of-use, while also costing less.
Interpret’s “Shifting Smart Home Buyer Personas” study suggests far more middle and lower-income consumers have entered the home automation market than previously understood: 59% of 2021 buyers earn less than $75,000.
The study is said to look beyond the “average smart home buyer” to explore meaningful changes to important segments. The report includes a deep dive into some of the 50 buyer attributes tracked quarterly to provide more depth to persona development. It includes channel trends with implications across the home automation ecosystem, according to the company.
Interpret’s companion report, “Evolution and Expansion of Smart Home Channels,” finds that two-thirds of connected device buyers are multichannel buyers or switchers from one purchase channel to another, thus open to persuasive new offers.
After more than a decade of experimentation and expansion, some consumer channels for connected devices products and services are fine-tuning their focus, with some opting to include do-it-yourself style solutions. Others are still trying to get the business model right or get up to speed on engaging and supporting consumers. The report explores the strengths, weaknesses and opportunities of the leading channels, including direct-to-consumer, retail, home security, internet service providers, custom integrators, proptech and insurance.
“Smart home purchase channels are growing more diverse,” says Brad Russell, vice president at Interpret. “Today’s consumers are faced with nine major purchase channels from Ikea to their internet service provider, and are increasingly open to the best deal and service wherever they can find them.”
A version of this article originally appeared on our sister publication Security Sales & Integration‘s website.