Consumers are content with turning on a light the old fashioned way. At least for the time being anyway.
The internet-connected devices that can automatically respond to preset rules or can be remotely accessed and managed by mobile apps or a browser, have been embraced by early adopters but are yet to gain traction in a broader market, according to a new consumer survey by Gartner.
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The survey of nearly 10,000 online respondents in the US, the UK and Australia conducted during the second half of 2016, found that only about 10 per cent of households currently have connected home solutions.
According to the survey, three-quarters of respondents indicated they are happy to manually set temperature and lighting controls versus only one-quarter who expressed an interest in having devices anticipate needs in the home.
Furthermore, 58 per cent of respondents showed a preference for separate, independent, stand-alone devices versus a connected ecosystem.
However respondents did see the value of having a single app to control all their connected home devices, appliances and services.
“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.”
Home security alarm systems, the more established of connected home solutions, have nearly double the adoption rates (18 per cent) of newer connected home solutions such as home monitoring (11 per cent), home automation or energy management (9 per cent), and health and wellness management (11 per cent).
Monetisation a challenge
Generating ongoing revenue from connected devices is also a challenge for vendors, the survey found.
Excluding home security alarm services for which a monthly fee is generally paid, solution providers may find monetising connected services challenging. Less than half of households currently pay for subscription-based home monitoring and automation/energy management solutions.
In the US, where the home monitoring industry is more developed, 59 per cent 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 UK, where few home automation services are subscription based and 58 per cent of households with home automation get their services free of charge.