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Reduced Home Renovations During COVID-19 Lockdown Impacting Smart Home Market

Smart Home Market Analysis and Commentary

Current social distancing and lockdown measures resulting in reduced home renovations will impact smart home device sales, according to an international consumer research study from Futuresource Consulting. The research, carried out in the USA, UK, France and Germany with a nationally representative sample of almost 4,000 consumers, found that home renovations are the leading gateway activity to prompt people to purchase smart home devices.

“Over half of advanced users – people with at least five smart home devices – told us they first began to explore smart home devices during DIY and renovation projects,” says Julian Issa, Senior Market Analyst at Futuresource Consulting. “As the home renovation market is impacted by ongoing lockdowns in major markets, we are likely to witness a significant dip in smart home devices sales across all major markets in Q2 2020.”

Comfortable Living and Making Life Easier Cited as Key Motivators

Across all four countries and all respondents, the top motivator for purchase was to make life easier, with other high-ranking factors that included making a home a more comfortable living environment, increasing security, saving time and improving efficiency.

“More than 90% of smart home device owners that we surveyed told us they are either extremely satisfied or very satisfied with their purchases,” says Issa.

Advanced Users Very Different to New Adopters

Smart speakers are driving the majority of growth in the space and acting as an entry point. Smart security products are also playing a defining role and appealing to more advanced users with five or more devices, who tend to skew towards a male, younger, higher income and urban profile.

Two in three advanced users are male, and three-quarters of them earn more than $40,000,” says Issa. “However, those just starting out on their smart home journey tend to be over 35 and earning less than $40,000. Yet, cost still remains a barrier to entry for many. Over half of non-adopters cited it as the main reason for holding back on a purchase, although this has dropped two percentage points since our previous round of research.”

Futuresource Consulting’s 86-page smart home consumer research report is the fifth consumer survey providing an insight into smart home devices and appliances. The report explores ownership, satisfaction, motivations, barriers and perceptions. Small and major domestic appliances are covered, alongside lighting, climate control, speakers, and security and monitoring, as well as a range of other devices. For further information on this report, please contact Jack Tammaro via

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About the author

Julian Issa

Julian Issa is Futuresource Consultancy’s lead analyst in intelligent home and vision. His work at Futuresource has focused on identifying how global dynamics and new technologies are shaping smart consumer trends, as well as forecasting the trajectory and potential success of smart home devices across different markets.

His latest work in intelligent home has looked to identify opportunities presented by a subscription business model and how the global pandemic has shifted consumer perception of smart devices. Julian was previously an analyst and director at Global Business Reports where he lived and worked across six continents investigating the latest trends and business models impacting the smart tech, biotech, and industrial tech industries.

Julian received an M.Sci from the University of Bristol, UK, where he specialized in geopolitics and environmental policy. An alumni scholar of the Guildhall School of Music & Drama, Julian spent 3 years singing opera semi-professionally.

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