Enthusiasm for connected devices is on the rise, but it’s taking the buzz away from smart appliances and the smart home category on the whole.

Jamie Davies

October 3, 2018

3 Min Read
Connected speakers could refresh smart home euphoria

Enthusiasm for connected devices is on the rise, but it’s taking the buzz away from smart appliances and the smart home category on the whole.

According to research from GfK, products which are geared towards improving connectivity and entertainment are gaining traction in the market, though this is replacing the appetite for smart home appliances which are geared towards efficiency and functionality.

“Take-up of smart home products in the UK continues to rise, with interactive speakers the hot product of the last year,” said Trevor Godman, Divisional Director at GfK. “In contrast however, the level of consumer excitement about smart home as a category has lost momentum somewhat – particularly for smart appliances and smart health products.  As smart home pivots to the mass market, it is essential that manufacturers look at what is holding consumers back and communicate compelling benefits that capture consumers’ imaginations.”

While Godman is taking a rather negative approach to the trends, we do not see it in the same light. The idea of the smart home, and various devices in the kitchen or around the house being connected and programmable is not a new idea. The smart fridge or connected light bulbs have been around for years without stimulating enough momentum for the segment to really take off. A creative spark was needed to engage consumers and offer an attractive proposition, unfortunately, smart energy readers do not offer this. Smart speakers and TVs do however.

For the mass market to embrace new ideas, there needs to be genuine excitement. Being able to switch the light in the living off with your smartphone might be functional and useful occasionally, but the smart speakers capture the imagination of the consumer. These are products consumers would actually want to buy, instead of a central heating system which reacts to the weather outside.

According to the research, the UK smart home market was worth £900 million in 2017, making it the second largest market in Europe. It has also become the fastest growing, increasing by 19% in value from 2016 and 35% by volume. There are now 336 brands offering 3,777 smart home products, while 85% of the UK’s online population now own at least one smart product, and the number owning four or more has grown from 35% last year to 44% this year. The fastest growing segment is smart speakers, though this does seem to be at the expense of other categories.

Manufacturers of smart cookers or connected mirrors might look at these statistics and worry, though GfK suggests consumers who plan to buy a smart device or appliance in the future have their sights set on a wide range of products. The smart home might have failed to deliver over the last couple of years, though the accessibility and entertainment value of smart speakers does seem to open up consumers to new purchases.

The purchase of smart home devices might not be growing across the board, but that isn’t necessarily awful for those who have their eyes on the long-game. Smart speakers are normalising the idea of the connected economy. Once the basic concept has been accepted by the mass market, the opportunity to sell becomes significantly easier as value is more readily realised and accessible.

Philips might preach about the benefits of a smart central heating system, but the frivolous purchases were needed to normalise the segment first. The smartphone ecosystem didn’t explode overnight, there were years of adoption as the touch user interface become second-nature, the same could be said here. Frivolous purchasing is needed before the connected bug can spread throughout the home.

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