Back

Analysis and forecast of the smart home market

The study conducted by YouGov confirms that smart home devices are becoming ever more present in the UK households.

Penetration has reached almost a quarter (23%) with smart speakers (11%) leading the way. The number of people owning a smart meter is higher (18%), but as these devices are given away free by providers rather than purchased they are not considered a part of the analysis.

However, more than three quarters (77%) do not currently own any device so there is still room for brands to greatly expand their market share.

Due to the high level of advertisement and promotion, there is more awareness towards smart speakers and digital voice assistants, although other appliances are also gaining more importance.

Smart speakers such as Amazon Echo and Google Home are the most widely-owned smart device among the UK public – despite only being released into the UK market in the last couple of years. More than one in ten (11%) UK adults own a smart speaker, with Amazon Echo dominating. Of those who own smart speakers, almost seven in ten (69%) have an Amazon Echo, with second- placed Google Home some way behind on 19%.

Compatibility with other devices is considered one of smart speakers’ most important features. Among smart speaker owners, the greatest appeal of smart appliances in general is that they make life easier.

PROFILE OF A SMART SPEAKER OWNER 

  • 52% – High income (over £30k)
  • 42% – Over index among 25-44
  • 33% – more likely to own their own home
  • 48% – more likely to live in a household of 3 or more people
  • 18% – more likely to have children in the household
  • More likely to have made a large purchase in the last year:
  • 18% bought a car
  • 9% made major home improvements

 

ATTITUDES TO TECHNOLOGY 

  • 17% “I’m always keen to try new technology products as soon as they enter the market”
  • 58% “I believe technology is a force for good”
  • 40% “I believe technology will make communities more connected in the future”

 

At present, 6% of the UK public own a smart thermostat, one in nine (14%) saying they would consider purchasing one.

Smart meters measure households’ gas and electricity consumption and send automatic readings to utility suppliers. They are intended to give people more control over their energy use and save them money.

The government wants every home to have one by 2020 although consumers can opt out. While there has been some controversy over both the accuracy of the devices and their money-saving capabilities, they are the most widely-owned type of smart home device, with 18% of the nation currently saying they have one.

As smart meters are given away for free rather than being bought, the ownership demographics differ from other smart devices mentioned earlier. Smart meter owners are much more likely to be older, with half (50%) of those aged 55+ having one. However, there are no significant divergences when it comes to income or social class.