The Internet of Things for Smart Homes: Voice Control Hastens Adoption - eMarketer
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The Internet of Things for Smart Homes: Voice Control Hastens Adoption

eMarketer Report

By: eMarketer

Published: May 08, 2017

Jump to: Executive Summary | Table of Contents | List of Charts

Executive Summary

Despite recent media hype about futuristic gadgets, smart-home technology is still in the early-adopter phase. However, the market may finally be gaining traction, thanks to voice-controlled interfaces, less expensive internet of things (IoT) devices and better industry collaboration.

  • Some of the most common smart-home products include thermostats, light bulbs, voice-controlled speakers, security systems and entertainment components. More novel products—children’s toys, robotic pet sitters and smart aquariums—are also attracting interest. North America is currently the largest market for such devices.
  • Convenience and security are two main drivers for adoption, though a killer value proposition has not yet emerged. Concerns about the privacy and security of these “always-on” devices—as well as device complexity and cost—remain stumbling blocks for consumers and manufacturers alike.
  • Voice-controlled speakers that incorporate artificial intelligence (AI), including the Amazon Echo and Google Home, have significant potential to accelerate adoption.
  • Tech giants, startups, cable and telecom firms and consumer electronics manufacturers are all jockeying for position in the smart-home market. They are also experimenting with different monetization models. It is still unclear how the market will ultimately shake out.

"The smart-home market is still in the early-adoption phase, though more consumers are becoming aware of it. About 12% of internet users worldwide have already used smart-home technology, while another 33% were very likely to make a future investment."

Table of Contents

The Rise of the Machines

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Convenience and Safety Drive Adoption

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What’s Holding Things Back?

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Will Voice Control Unlock the Smart Home?

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Opportunities for Smart-Home Marketers

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25 charts are included in the full report:

The Internet of Things for Smart Homes: Voice Control Hastens Adoption

Likelihood that Internet Users Worldwide Will Invest in the Latest Smart Home Technology, March 2016 (% of respondents)

The Rise of the Machines

Likelihood that Internet Users Worldwide Will Invest in the Latest Smart Home Technology, March 2016 (% of respondents)

US Internet of Things Shipments vs. Revenues, by Device, 2017

US Internet Users' Ownership of Smart-Home Devices, by Demographic, Oct 2016 (% of respondents)

Smart-Home Device Revenues Worldwide, by Region, 2015-2030 (billions)

Awareness Outpaces Adoption

Awareness vs. Ownership of Select Smart-Home Technologies Among US Internet Users, 2015 & 2016 (% of respondents)

US Internet Users' Familiarity with Select Smart Technologies*, June 2016 (% of respondents)

Convenience and Safety Drive Adoption

Factors that Would Motivate US Internet Users to Adopt Smart-Home Technology, March 2016 (% of respondents)

Safety, Security and Access

Most Popular Internet of Things Devices Used by US Internet Users, July 2016 (% of respondents)

Entertainment, Information and Communication

Types of Smart-Home Devices Purchased by US Smart-Device Buyers, Feb 2017 (% of respondents)

Internet of Things Devices Owned by US Internet Users, Aug 2016 (% of respondents)

Health, Fitness and Living Assistance

Smart-Home Device Revenues Worldwide, by Type, 2015-2030 (billions)

Resource Management and Energy Efficiency

Internet of Things (IoT) Devices/Services Used by Internet Users in Select Countries, Oct 2016 (% of respondents)

Smart Appliances

Awareness and Ownership of Select Smart-Home Devices Among US Smartphone Owners, Nov 2016 (% of respondents)

Controllers, Hubs and Other Home Automation Devices

Internet of Things Devices that US Internet Users Are Interested in Purchasing, Aug 2016 (% of respondents)

What’s Holding Things Back?

Types of Connections Used for Their Company's Internet of Things Solutions According to Business Executives Worldwide, Jan 2016 (% of respondents)

Lack of Clear Value Proposition

Reasons that US Smart Device Owners Are Dissatisfied with Their Smart-Home Device, Oct 2016 (% of respondents)

High Cost of Adoption

Barriers to Adopting Smart-Home Technologies According to Internet Users in Germany, Oct 2015 (% of respondents)

Factors that Would Influence US Internet Users to Purchase a Smart-Home Device, by Age, Oct 2016 (% of respondents in each group)

Change in Prices of Select Communication Technologies Worldwide, 2013-2015 (CAGR)

Will Voice Control Unlock the Smart Home?

US Voice-Enabled Speaker Users and Penetration, 2016-2021 (millions and % of population)

US Voice-Enabled Speaker Shipments, 2014-2017 (millions)

US Voice-Enabled Speaker User Share, by Player, 2016-2021 (% of total)

Awareness and Ownership of Select Voice-Enabled Speakers Among US Consumers, Feb 2017 (% of respondents)

Share of Skill Apps Available for Amazon's Alexa on the App Store, by Category, Dec 2016 (% of total)

Opportunities for Smart-Home Marketers

Smart-Home Device/Service Spending Worldwide, by Segment, 2016-2022 (billions)