The Smart Home market is changing. Parks Associates findings indicate the presence and the voice of the mass market buyer is louder than ever before in Parks Associates recently-published Smart Home Buyer Journey study.
The “new buyers” aka the shift to Early Majority
Until now, smart home product buyers have been predominantly consumers who buy new technology as soon as it is available, or soon after it is available. These customers, who we refer to as Innovators or Early Adopters, are tech-savvy individuals who embrace new technology and use it extensively in their lives. New data indicates the landscape has changed as these segments now represent only 44% of smart home device-owning households. This indicates a growing adoption by more mainstream consumers.
The Early Majority segment, which now accounts for 33% of all smart home adopter households, comprises individuals who are not as eager to embrace cutting-edge technology but are willing to try it once it becomes more established and widely adopted. This shift has been accompanied by a decline in the average number of smart home devices per household, dropping from 8.0 to 7.1, marking the first decrease since Parks Associates began tracking this metric in 2016. This decline can be attributed to more households entering the smart home market and purchasing their first few smart devices.
This shift also implies a change in the center of the smart home narrative regarding device ownership segments. The Super Users, who are the heaviest adopters of technology with 10+ devices, are no longer at the forefront. The rise of the Early Majority segment and the decrease in the average number of devices per household indicate a broader adoption of smart home technology among mainstream consumers. This shift presents an opportunity for the industry to adapt its marketing strategies and product designs to cater to the evolving needs of this expanding market.
Mainstream consumers are more likely to buy for practicality – they want devices and services that solve a real problem in their life. By prioritizing pragmatic benefits and addressing the specific requirements of mainstream users, smart home manufacturers and marketers can tap into the potential of this new consumer segment and drive further growth in the industry. One approach to delivering more value is through product bundles. Stay tuned for our next blog exploring consumer interest in product bundles.