Safety, Security Features Powering Sales Of Smart Home Tech

Intel's Smart Home Plans
Security and safety features are the primary reason people currently use smart home tech.

The most popular reasons consumers are interested in or buying smart home technology? They apparently want to feel safer and more secure within their own homes and view interconnected home technology as the ideal way.

Four out of every 10 consumers with interest in building a “smarter home” list security or safety as their primary reason for wanting to do so, according to a new report on the connected home by The NPD Group. The study surveyed 5,600 U.S. consumers in April who were age 18 or over.

These findings are played out in actual sales figures as well, as network-connected cameras amounted to 61 percent of all interconnected home sales between June 2015 and June 2016. Of the 10 percent of U.S. homes currently considered “smart,” monitors or camera devices were the most common point of entry into the market, according to the report.

“Smart cameras generate more retail revenue than any other home automation category, and a growing number of consumers are producing recurring revenue through add-on subscriptions that allow longer tenure video storage and provide features, such as the ability to share footage,” John Buffone, executive director of NPD Connected Intelligence, said. “As the market takes shape, we expect consumers to flank their smart cameras with other security-focused devices, such as smart doorbells; in fact, ownership of smart doorbells has grown by 64 percent in the past year.”

A third of all smart homes have a network camera, and a quarter of them have some sort of security motion sensor on doors or windows, according to the report.

Interestingly enough, 81 percent of owners of smart camera technology in their homes use the device primarily for home security, but 53 percent said they also use the camera for functions other than home security, such monitoring children, pets or guests in the home.

Many makers or providers of smart home or connected home technology believe that consumers’ willingness to purchase these products for safety reasons can be exploited as a way to gain entry into more homes and grow the market and product offerings.

There were about 100 million households worldwide with some type of smart home technology in 2015, and that number is expected to triple over the next 10 years to surpass 300 million households, according to a recent study by Deutsche Telekom, a global telecommunications company that makes smart home devices.

“People like to be connected. Witness the widespread adoption of the internet and all the applications that engage people daily, from banking to social media and online forums. Why not enable people to connect with their homes if these connections enhance their convenience, peace of mind, security, save them money and are ‘cool?’” according to the Deutsche Telekom study. “Most homes with smart systems currently have a single-function device, such as a thermostat or camera and some lighting controls. Most operate independently of each other. This will change as integrated systems built on platforms dominate, like Deutsche Telekom’s, which provide a unified experience across all device types. Consumers do not want different systems. They want one system for all their devices and for their homes to operate as seamlessly as their cars — where actions happen based on their preferences.”

Deutsche Telekom believes there is a “huge” market for devices that connect a consumer’s home with the outside world, as well as with their cars, tablets, smartphones, wearables and other devices.

Part of the issue, the company believes, is simply allowing the consumer to adjust to and experience the many benefits of smart home technology firsthand, and the best way to do that at the moment increasingly seems to market the devices as added security or safety features.

“Almost all of us live in a home of some shape or form. Many own one; others rent or share one. They are all as unique as we are,” according to the report. “They form the backdrop to our earliest memories. They are often a space which we share with others, whether loved ones or just passing acquaintances. For many of us, they are the protective shelter where we nurture our children. They are where we seek to relax, to unwind, to switch off and to enjoy the company of loved ones, family and friends. They often say more about us than anything else.”

Retailers looking to break into or expand on their smart home offerings might want to focus on the safety and security aspect of the devices until consumers become accustomed to the new tech and all the convenience it can bring to their lives.