Smart Homes

An exploration of smart home products and

the key factors driving the industry

TREND REPORT 2019

www.globalwebindex.com
Contents

Introduction 03

Key Insights 04

The Current Landscape of

the Smart Home Market 05

Opportunity and Demand

for Smart Home Products 10

What Drives Adoption? 15

The Literal Voice of Brands 21

Barriers to Adoption 24

Notes on Methodology 28

More from GlobalWebIndex 29

Introduction
GlobalWebIndex Trend Reports explore some of the
most pressing topics for marketers, from traditional
vs. digital media consumption to audience
measurement issues. In this report, we place the
spotlight on smart homes and provide a deep-dive
into the crucial topics of the industry. We answer
questions like:
01 How did smart homes emerge, and what
demographics and markets are the most
likely to own smart home devices?
02 How does demand vary between different
smart home product categories and where
is the most opportunity for the future?
03 What motivates consumers to buy smart
home products and how do they want to
navigate them?
04 How are voice assistants disrupting brand-
consumer interaction and what traits do
consumers expect from these devices?
05 What are the factors standing in the way of
mainstream smart home adoption?
When reading this report, please note
that we use a mixture of global data,
and data specific the U.S. and UK. We
typically use global data to analyze the
smart home market landscape across
demographics, regions and countries,
and use data specific to the U.S.
and UK to understand engagement
patterns and behaviors in regards to
smart home devices.
DEFINING SMART HOME PRODUCT
INTENDERS
This report defines smart home
product intenders as internet users
who said they’re planning to purchase
a smart home product in the next 12
months.
This definition rendered a sample of
2,221 respondents in the U.S. and
2,325 respondents in the UK.
Unless otherwise stated, the data in
this report is taken from a bespoke
survey from July 2019 among 2,221
(U.S.) and 2,325 (UK) smart home
product intenders aged 16-64.
METHODOLOGY
Please note, where clearly stated,
this report also draws insights from
GlobalWebIndex’s ongoing global
Core research. For an in-depth
explanation of GlobalWebIndex’s
research and methodology, including
information on our country coverage,
internet penetration rates, our sample
structures, and much more, please
click here.
Throughout this report we refer to
indexes. Indexes are used to compare
any given group against the average
(1.00), which unless otherwise stated
refers to the global average. For
example, an index of "1.20" means
that a given group is 20% above the
global average, and an index of "0.80"
means that an audience is 20% below
the global average.
Key Insights
The smart home product market is expected to
grow but ownership is concentrated among certain
groups.
The global smart home product market is predicted
to double between 2018 and 2024. However, 60%
of smart home product owners are currently below
the age of 35, meaning that those aged 35-64 are
slower on the uptake. A third of smart home product
owners are also in the top 25% income bracket,
which indicates that smart home products are still
more likely to appeal to more affluent segments of
the online population. This could help explain why
adoption of smart home products on a global scale
remains relatively low, at 12%.
The entertainment sub-sector is likely to see the
largest growth in the next year.
Entertainment products remain the most popular
category in the U.S., the world’s largest smart home
product market. 48% of internet users in the U.S. say
they intend to buy a product from this category in
the next year. Due to their energy and money-saving
capabilities, the potential for growth in the security,
energy and lighting categories is also evident. The
most popular reason for wanting to buy a smart
home product is to save money, and this proves
most relevant to those intending to buy an Energy &
Lighting device.
Consumers want efficiency and added value, but
also an intuitive and seamless navigation.
Saving money is the single most popular motivation
intenders have for purchasing a smart home
product. However, limited compatibility between
devices is likely to impede the progress of the
smart home product market. 71% of intenders say
they want to be able to navigate all products from
their smartphone, and almost a fifth say they’d
pay for an additional service to control all devices
simultaneously. Many also seek post-purchase
support, with 60% of respondents in the U.S.
expecting 24-hour support.
Voice assistants have the potential to change the
dynamics of brand-consumer interaction.
41% of those surveyed in the UK and 38% of
respondents in the U.S. say that they plan to buy a
smart voice assistant in the next year. This is likely to
affect how consumers search and shop in coming
years, and hence how they interact with brands. To
take advantage of this opportunity, brands should
aim to better understand what personality traits their
target audience most want their voice assistants to
have. Generally, future intenders want informative
and organized voice assistants.
Younger respondents – Gen Z and millennials – are
much more likely to want to be able to speak to a
celebrity or a youthful voice, while Gen X are more
partial to a voice characterized by wisdom.
Price as well as privacy and security concerns are
still the main obstacles.
Concern about the likelihood of being hacked, and
the high price tags of smart home products, are the
two main reasons given for not wanting to adopt.
Companies therefore need to reassure consumers
about the protections in place against the erosion
of their personal privacy in order to drive adoption.
A lack of knowledge about the possible benefits of
smart home products and their affordability is also
likely to hamper the development of this trend.
Smart Homes

The Current Landscape

of the Smart Home
Market
Evolution of the Smart Home Market

The global smart Amazon acquires Ring,

The "Internet of home market a maker of
Things" term is was valued at internet-connected
reportedly coined $77 billion. doorbells and cameras,
1999
by Kevin Ashton, for $1 billion.
executive director of
12% of internet
the Auto-ID Center.
users globally
own a smart
home product.
2018 2019
Google launches
Google Home.

66% in the UK
and the U.S. say
The first connected they are planning
2000 refrigerator, LG 2016 to purchase a
Internet Digital DIO, smart home
was born. product in the
next year.

The global smart

2010 2014 2024 home market is
expected to reach
$151 billion.

Amazon introduces
For the first time in Smart home Alexa & the
history, the number of company ‘Nest labs’ Amazon Echo.
devices connected to was founded.
the internet exceeded
Google acquires
the number of people
Nest labs for
on the planet.
$3.2 billion.
Smart Homes Around the World
THE CURRENT 07
LANDSCAPE OF THE
SMART HOME MARKET

Smart homes and the Internet of Things online population and a rising IoT market, TOP 10 MARKETS
(IoT) are two interconnected trends dating MEA has a vested interest in supporting the % of internet users in each market who
back to the late 1990s-2000s. Without the smart homes industry to accommodate the own a smart home product
IoT – the ability of the internet to connect demand for energy efficiency and increased
IDX
different devices and enable them to send security.
and receive data – smart homes would never
have been made possible. Both trends USA 18% 1.53
reached a tipping point when, in 2010, the
number of connected devices exceeded Turkey 17% 1.44
the number of people. Since then, the smart
home products market started gaining pace, UK 16% 1.41
reaching $77 billion in 2018. SMART HOMES AROUND THE WORLD
% of internet users in each region who own a
China 16% 1.39
Despite this boom, the global adoption of smart home product
smart home products remains relatively IDX India 14% 1.20
low at 12%. North America tends to see
the highest rates of adoption, with almost
Asia Pacific 13% 1.13 Vietnam 14% 1.20
a fifth of its online population owning a
smart home product. In fact, it is estimated
that more than 63 million homes in North Europe 9% 0.74 Singapore 13% 1.08

America will be smart by 2022, or 44% of

all homes in the region. Latin America 7% 0.58 Canada 12% 1.06

On the other end of the spectrum, smart Middle East & Africa 6% 0.49 Ireland 12% 1.04
home penetration is lowest in Middle East
& Africa, at just 6%. However, there is an North America 17% 1.48 Sweden 12% 0.99
opportunity here. With an ever-growing

Question: Which of the

following devices do you own?
(Smart home product)
Source: GlobalWebIndex
Q1 2019  Base: 139,397
internet users aged 16-64
Smart Homes Around the World
THE CURRENT 08
LANDSCAPE OF THE
SMART HOME MARKET

THE PREVALENCE OF SMART HOME PRODUCTS TOP 3 MARKETS

% of smart home product owners who have the following devices Smart speaker (e.g. Apple HomePod)

80% 75% 69%

UK U.S.A. Australia
74
50
38 36
30 26

Smart utility product (e.g. remotely controlled

NORTH AM EUROPE thermostat)

55
42 39

50% 49% 48%

APAC
20 15 18
42
33 34 Germany China Hong Kong
MEA

LATAM

Smart security product (e.g. remotely controlled

doorbell or security camera)

Smart speaker (e.g. Apple HomePod)

Smart utility product (e.g. remotely controlled thermostat)
Smart security product (e.g. remotely controlled doorbell) 46% 43% 42%
Question: Which of these
smart home devices do you
own?
Vietnam China Colombia Source: GlobalWebIndex
Q1 2019  Base: 14,782 smart
home product owners aged
16-64
Who Owns a Smart Home Product?
THE CURRENT 09
LANDSCAPE OF THE
SMART HOME MARKET

Smart home product owners are most PROFILING SMART HOME PRODUCT OWNERS
likely to be married, in their mid-thirties, % of smart home product owners who are…
working full-time and living with their
AGE
partner. They’re also much more likely to
be affluent — a third fall into the top 25%
income bracket. What defines them as 16 to 24 25 to 34 35 to 44 45 to 54 55 to 64
consumers is their tendency to adopt new 25% 34% 23% 12% 6%
technologies earlier and faster, with 66%
saying that having the latest technological
LIVING SITUATION
products is very important to them (Index
1.31). As well as smart home products, Live with friends/roommates Other
5% 2%
they’re much more likely than the average
internet user to own smart wearables (42%
Live by myself Live with my partner Live with parent(s)
own a smartwatch) and a VR headset (17%). 13% 58% 22%

Smart home product owners are

cosmopolitan consumers, meaning
that they’re interested in other cultures INCOME
and countries, like to be surrounded by
different people and explore the world
Bottom 25% Mid 50% Top 25% Other
around them. They wouldn’t mind working 17% 45% 33% 5%
and living abroad — 37% embark on short-
haul business trips outside their home
country every 6 months. EMPLOYMENT STATUS 67% Full-time worker

10% Student

9% Self-employed/Freelancer

6% Part-time worker

3% Unemployed

2% Full-time/stay-at-home parent
Source: GlobalWebIndex
2% Retired
Q1 2019  Base: 17,096 smart
1% Other home product owners aged
16-64
Smart Homes

Opportunity
Chapter Title and
Demand for Smart
Home Products
Smart Home Products
In a bespoke study run in July 2019, we
found that 66% of internet users in the
UK and the U.S. say they are planning to
purchase a smart home product in the next
year, illustrating the increasing awareness
around connected devices in recent years.
There is little difference between the two
markets, with the U.S. (67%) only slightly
more enthusiastic than the UK (63%).
Moreover, the fact that over half of our
oldest demographic — 55 to 64s — are
planning to buy a smart home product
demonstrates the cross-demographic
appetite for this market, and hence the
potential for future growth.
SMART HOME CATEGORIES BY MARKET
% of smart home product intenders in the UK and the U.S. who are planning to purchase a smart home
product in the following categories
46% | 42% 45% | 48%
Energy & Lighting Entertainment
(Smart Thermostat, (Smart TV, Smart
Smart Energy Meter, etc.) Audio/Speakers, etc.)
This enthusiasm is especially pronounced
when we look at the different categories
smart home product intenders say they’re
planning to purchase from. All smart product
categories are more prominent in the U.S.
than the UK, except for Energy & Lighting,
where the UK is four percentage points
ahead. On the other end of the spectrum,
Security & Control smart home products,
like smart alarm systems or smart doorbells,
are much more established among U.S.
intenders. The general popularity of these
two product sub-sectors illustrates the
increasing concern around safety and
41% | 38% 34% | 45%
Smart Voice Assistant Security & Control
(Google Assistant, (Smart Security Camera,
Amazon Alexa, etc.) Alarm System, etc.)
OPPORTUNITY AND 11
DEMAND FOR SMART
HOME PRODUCTS
security, as well as rising electricity bills,
fueling the demand for efficient solutions.
Despite this, entertainment is where the
smart home market will see the most
growth opportunity in the next 12 months.
48% of intenders say they’re planning to buy
a smart home product from this category,
rising to 58% among millennials.
UK U.S.
25% | 29% 17% | 26% Question: You’ve said you’re
planning to purchase a smart
Domestic Appliances Health (Massage Chair, home product in the next 12
(Smart Kettle, Smart Smart Air Purifier, etc.) months. Which of the following
categories is that most likely to
Coffee Maker, etc.)
be from?
Source: GlobalWebIndex July
2019  Base: 2,221 (U.S.) and
2,325 (UK) smart home product
intenders aged 16-64
Smart Home Products
SMART HOME PRODUCTS BY CATEGORY The demand for smart entertainment
% of UK/U.S. smart home product intenders in products is primarily driven by the popularity
each category who would consider buying the of smart TVs. Among our global sample
following devices in the next 12 months of internet users, 39% own one, up from
33% in Q1 2017. In fact, the global smart
TV market value is projected to reach $278
Security & Control
billion by 2024, rising by 10% year-on-year.
Our research among those that plan to
Smart security camera
73% purchase an entertainment product in the
UK and U.S. supports this. 74% of those
Smart lock
51% planning to purchase an entertainment
product are considering buying a smart TV
Entertainment
in the next year. Catalyzing the demand for
smart TVs is the increasing engagement
Smart TV
with online forms of TV, with online adults
74% now spending an average of 1h 17m
Smart remote control streaming TV each day. This is also fueled by
42% growing competition in the space, leading
to price drops.
Energy & Lighting
Smart security cameras are the most
Smart light control desirable device on the Security & Control
66%
front. Although far less popular than
Smart thermostat smart TVs, the smart surveillance market
52%
is expected to reach around $10 billion in
the next four years. As a result, more and
Domestic Applicances more companies are entering this space,
with Amazon currently commanding the
Smart fridge strongest interest (62%) among those who
44%
plan to purchase a smart home security
Smart mirror
20% product in the UK and U.S. The growing
OPPORTUNITY AND 12
DEMAND FOR SMART
HOME PRODUCTS
saturation of this sub-segment means that,
similar to smart TVs, smart surveillance is
becoming more affordable to consumers,
and it’s likely to enter mainstream adoption
in the near future. But at the same time, the
low costs offered by Amazon and Google
are posing serious threats to smaller vendors
producing higher-end devices.
The big players hold the advantage of
having a footprint in most smart homes. On
top of that, their offerings along the entire
smart home product range encourage
consumers to build out their ecosystem of
smart products from a single brand. Smaller
vendors, therefore, need to demonstrate
their brand-agnostic functionalities and their
higher-end specifications in order to stay
competitive.
Question: Which of the
following devices would you
consider buying in the next 12
months?
Source: GlobalWebIndex July
2019  Base: 2,221 (U.S.) and
2,325 (UK) smart home product
intenders aged 16-64
 T R E N D I N AC T I O N

Amazon Penetrating the

Smart Home Market

Amazon's $1 billion acquisition of Ring — a startup that specializes in smart-

camera-equipped doorbells — was one of the strategic moves bringing the
company closer to establishing itself as a leader in the smart home market. The
key to the acquisition was the fact that Ring’s doorbells support voice-enabled
speakers and Amazon again held the competitive edge by providing the
synergy between two disparate sectors.

Today, Amazon has taken this a step further by partnering with different police
departments in more than 40 cities in the U.S. that distribute Ring’s smart
doorbells to build a surveillance network. This initiative has enabled the tech
giant to push a smart home product on a larger scale and shows that smart
home devices can serve a wider purpose.
Smart Home Brands
OPPORTUNITY AND 14
DEMAND FOR SMART
HOME PRODUCTS

SMART HOME PRODUCTS BY CATEGORY

% of UK/U.S. smart home product intenders in each category who are
planning to purchase a smart home product from the following brands

73% 70%
66%
62% 59% 62% 60% 62%
58% 56%
54% 52% 53% 54%
49% 50%
46% 43% 45% 45%
41% 39% 40% 44% 37%

Security & Control Entertainment Smart Voice Assistant Energy & Lighting Domestic Appliances

Looking at the main competitors in the smart
home market more broadly, we can see that
the leaders here are Amazon and Samsung,
commanding over 50% interest among smart
home product intenders. This is around 10
percentage points ahead of the third-most
popular player, Google, which attracts the
interest of 42% in the UK and the U.S.
Amazon doesn’t enjoy dominance in every
smart home category though. When it comes
to entertainment and domestic appliances,
Samsung leads the way. Samsung entered
the market aggressively after it unveiled
its SmartThings platform of smart home
accessories back in 2014. SmartThings is
currently unrivalled by competitors as the
only smart home ecosystem that includes a
first-party smart TV, fridge and voice assistant.
It also recently added to its portfolio of
SmartThings devices a new camera, Wi-Fi
plug, and light bulb.
LG is also climbing the smart home
ladder when it comes to domestic
appliances. The company just formed a
large-scale collaboration with Qt aimed
at making webOS the most advanced and
comprehensive operating system for smart
devices, which will be in direct competition
with SmartThings. It’s important to note
that the developments in this space are a
response to a larger consumer demand for
a seamless smart home experience – a point
we touch on later in the report.
Question: Which brands are
you thinking of buying a smart
home product from?
Source: GlobalWebIndex July
2019  Base: 2,221 (U.S.) and
2,325 (UK) smart home product
intenders aged 16-64
Smart Homes

What Drives
Adoption?
What Drives Adoption?
If the smart home market is to go mainstream,
we have to understand what the main benefits
driving adoption are from a consumer point
of view, and by contrast, what stands in the
way. The top four most desired smart home
benefits largely revolve around saving energy
and providing value for money, rather than just
being nice-to-have features. Saving money is the
single most popular motivation intenders have
for purchasing a smart home product, and this is
most likely the expectation of those planning to
purchase an Energy & Lighting device.
WHAT DRIVES 16
ADOPTION?
Smart lighting and smart thermostats are two
of the most popular purchases consumers are
intending to make in the next year, and the fact
that they’re cost and energy efficient is the main
reason why. The former can turn off automatically
when not in use, while the latter learns the habits
of its users and helps them control their energy
consumption as much as possible.
What Drives Adoption?
WHAT DRIVES 17
ADOPTION?

THE BENEFITS OF SMART HOME PRODUCTS

% of smart home product intenders in the UK and the U.S. who say the following would most motivate
them to buy a smart home product

KEY

? most
relevant to

%
motivator

Security & Control

53% 48% 48% 48% Energy & Lighting
If it helps me If it makes my If it helps me If it helps me be more Smart Voice Assistant
save money home more secure save time energy efficient
Domestic Appliances

TOP OVER-INDEX * Indexes are against the

BY GENERATION* average in the UK and U.S.

GEN Z

If it knows what I want 1.26 IDX

(it’s personalized)

MILLENNIALS

If it helps me organize 1.12 IDX

45% 38%
If it helps me If I’m reassured my
organize my daily life personal information is
not used by companies
my daily life
Question: Which of the
following would most motivate
33% 29% GEN X you to buy a smart home
If it helps me be If it knows what I want product?
If it helps be more 1.05 IDX Source: GlobalWebIndex July
healthier (it’s personalized)
energy efficient 2019  Base: 2,221 (U.S.) and
2,325 (UK) smart home product
intenders aged 16-64
What Drives Adoption?

A personalized smart home device is crucial for

Gen Z, while staying organized is what matters
to millennials.

Certain benefits of the smart home carry more value for younger
generations than others. For example, Gen Z put a lot of weight on
time-saving – the most popular smart home purchase driver among
these tech-savvy consumers. Additionally, what most differentiates
Gen Z from their older counterparts is their desire for personalization.
Almost 4 in 10 Gen Z intenders want their smart home product to know
what they want (Index 1.26) and although 32% want to be reassured
that their personal information is not used by companies, they’re less
likely than other generations to say so.

Millennials are the most demanding generation when it comes to the

benefits of the smart home. Each option we surveyed is most likely to
appeal to them than to other generations, with the exception of the
device being personalized. A smart home product would truly grab
their attention (and most likely money) if it helps them organize their
daily lives (50% say this, compared to 40% of Gen Z). As the generation
that tries to fit as much into their day as possible (63% say this), voice
assistants are the perfect device to make a difference here. With 45% of
millennials in the UK and the U.S. planning to purchase one in the next
year, the opportunity is plain to see.
The Integrated Smart Home
WHAT DRIVES 19
ADOPTION?

A SEAMLESS SMART HOME EXPERIENCE One thing that could jeopradize universal reassured that their personal information is
% of smart home product intenders in the UK smart home adoption is the fact that it’s not used by companies. Clearly, privacy and
and the U.S. who say the following would most usually difficult to navigate a smart home personalization take a back seat in favor of
motivate them to buy a smart home product seamlessly when different devices come convenience in the smart home world.
from various companies and operating
Security & Control Smart Voice Assistant
systems. In fact, almost 3 in 10 intenders When it comes to the ways future smart
Energy & Lighting Domestic Appliances
say a potential downside of smart home home buyers prefer to navigate their
most
relevant
to:
products is the fact that they aren’t devices, across all generations, the
If it can be operated and compatible with each other. smartphone tops the charts both in the UK
monitored remotely
42% and the U.S. Samsung is one brand that
Consumers could own a Samsung smart continues to innovate and acknowledge
If it links with other devices
around the house fridge, an Amazon Alexa smart speaker and the importance of integrating its products
34% a Nest smart lighting system in our house, with speaker ecosystems other than Bixby.
but they would do little for us if they’re not Samsung’s 2019 TVs execute some basic
integrated. Our research shows that it’s commands from other smart speakers like
incredibly important for consumers to be Alexa and Google home, but the more
% of smart home product intenders in the UK and able to operate and monitor their smart advanced capabilities will still be performed
the U.S. who say if they were to have more than home devices remotely, as well as to be by Bixby. This is still a significant step for a
one smart home product, they would prefer to able to link them with other devices around giant like Samsung, and it means that other
navigate them via... the house. As we saw earlier, some brands companies might follow suit.
most
relevant are making progress in integrating their own
to:
products, but the full potential of automated
Smartphone living won’t be realized unless devices from
71% different vendors are made compatible.

PC/Laptop/Tablet This is especially the case when it comes

46% Question: Which of the
to voice control integration, with 47% following would most motivate
you to buy a smart home
of those planning to purchase a smart product? // If you were to have
Voice assistant
assistant saying that device compatibility more than one smart home
44% product, how would you prefer
is a purchase driver. Interoperability is more to navigate/control them?
I’d pay for an additional app/device important to them than other motivators like Source: GlobalWebIndex July
that helps me navigate all products 2019  Base: 2,221 (U.S.) and

18% the device knowing what they want or being 2,325 (UK) smart home product
intenders aged 16-64
Post Purchase Support
WHAT DRIVES 20
ADOPTION?

The ideal smart home experience goes
beyond a bunch of integrated devices
that save consumers time and money.
The post purchase customer experience
is crucial in this industry, and additional
benefits and services after the initial
purchase are paramount for encouraging
adoption. Clear instructions on how to use
the product emerge as the single most
important support intenders in the UK
and the U.S. wish for. The post purchase
service is especially important for those in
the U.S. though. They over-index for most
of the options we surveyed, but receiving
24-hour support carries the most weight for
intenders here – 60% cited this compared to
47% in the UK.
Smart home product
Free installation is also an expectation owners are 48% more
consumers have when they’re buying a likely than average to
smart home product, and this is also where advocate for a brand
a lot of companies fall short. As gadgets if they have access to
are becoming more intelligent and more exclusive services.
technologically-advanced, installation costs
are rising. In fact, the smart home installation
services market is expected to reach $21
billion by the end of 2027, which confirms
the demand for affordable or free installation
to come with the smart product package.

POST PURCHASE SUPPORT BY MARKET

% of smart home product intenders in the UK and the U.S. who say they expect the following post
purchase support
UK U.S.

60% 52% 47% 45% 33% 31%

60% 55% 60% 49% 39% 37%
Question: If you were to
purchase a smart home
product, what kind of post-
purchase support do you
expect after you’ve bought it?
Clear how-to Free replacement 24-hour support Free installation A trial period Free regular
Source: GlobalWebIndex July
instructions or repair product check-ups 2019  Base: 2,221 (U.S.) and
2,325 (UK) smart home product
intenders aged 16-64
Smart Homes

The Literal Voice

of Brands
The Human Behind the Voice
14% of internet users in the U.S. and the
UK own a smart speaker, and 39% say
they are planning to buy one in the next
year. This means that, in the most optimistic
of scenarios, more than half of digital
consumers in the U.S. and the UK would
be engaging with smart assistants in the
next year. The technology is here, and it’s
heralded as the future of everything from
search to shopping. Voice assistants have
inspired conversations around the potential
to disrupt the commerce industry as well as
change the ways consumers interact with
brands. Companies are keen to understand
whether they need to integrate with voice
before it’s too late, and it’s becoming clear
that this is a trend which is well-poised to
reshape entire industry landscapes.
Smart assistants have something that screen
and text-based devices don’t — a voice —
creating a seamless, personal and more
human-like way of interaction. This means
that, by default, users don’t feel like they’re
interacting with a machine as much as
with other devices they use; they establish
THE LITERAL VOICE OF 22
BRANDS
trust, connection or even emotion. This is TOP 5 PERSONALITY TRAITS WANTED
an opportunity that cannot be missed by IN VOICE ASSISTANTS
brands, but it’s also a challenge. Building a % of smart home product intenders in the
voice-friendly brand identity is a natural next UK and the U.S. who think if voice assistants
step companies need to embark on as a were people, they should be…
brand’s voice could be its new logo in
the future.
62%
Informative
But first it’s crucial for marketers to
understand what personality traits
consumers are looking for in their voice
companions. First and foremost, smart
home purchase intenders in the UK and 50%
the U.S. want them to be informative (cited Organized
by 62%) and organized (cited by 50%).
This is clearly resonating with what smart
home product owners want from brands.
Improving knowledge and skills (28%)
and help with organizing their daily lives 44%
Funny
(35%) stand out as the two most value-
driven requests this group has for brands
The penetration of voice assistants in the
brand-consumer relationship is an exciting
opportunity for companies to rethink their 43%
purpose and design their voice according to Motivating
a target demographic.
Question: If smart voice
assistants (e.g. Amazon’s Alexa,
Apple’s Siri, etc.) were people,
what would you like them
to be?
40% Source: GlobalWebIndex July
Thoughtful 2019  Base: 2,221 (U.S.) and
2,325 (UK) smart home product
intenders aged 16-64
The Human Behind the Voice
THE LITERAL VOICE OF 23
BRANDS

We see interesting demographic variations
when it comes to personality traits of voice
assistants. Our youngest respondents – Gen
Z – are much more likely to want a celebrity
or a youthful voice. This is clearly translated
into the way they discover brands as well.
Voice interaction opens up new unexplored TOP 3 OVER-INDEXES BY GENERATION*
avenues for brands to enter, but challenges
around how receptive consumers will be to GEN Z
brands infiltrating their personal space, as
well as enduring privacy concerns. In fact,
almost a quarter of smart home product A celebrity 1.83

Gen Z are 82% more likely than the average
online consumer in the UK and the U.S.
to find out about new brands via celebrity
endorsements. Brands have a huge space
here to engage Gen Z in a unique way via
a celebrity voice. Older consumers, on the
other hand, are more insistent on a wise
and thoughtful voice. Gen X express this in
their relationship with brands as well – 44%
want brands to make them feel like valued
customers compared to just 27% of Gen Z.
intenders don’t trust voice assistants with
handling their personal data. This largely Youthful 1.32
falls down to unfamiliarity among consumers
with how their data is stored and how they Curious/inquisitive 1.23
may access this data. Brands need to be
extremely transparent with consumers over
data collection in voice tech. * Indexes are against the
average in the UK and U.S.
MILLENNIALS
Youthful 1.48

A celebrity 1.35

A quarter of smart home product intenders don’t trust voice Motivating 1.17
assistants with handling their personal data.

TOP 3 OVER-INDEXES BY GENDER* GEN X

A celebrity 1.18 Wise 1.19 Wise 1.08 Question: If smart voice

assistants (e.g. Amazon’s Alexa,
Apple’s Siri, etc.) were people,
Someone with an
1.09 Organized 1.16 Thoughtful 1.06 what would you like them
accent to be?
Source: GlobalWebIndex July
2019  Base: 2,221 (U.S.) and
Youthful 1.08 Funny 1.15 Informative 1.04 2,325 (UK) smart home product
intenders aged 16-64
Smart Homes

Barriers to
Adoption
A Convenience-Driven Market

BARRIERS TO ADOPTION 25

So far, we’ve covered the benefits that

encourage adoption of smart products
and what can be done to bring those to Lack of necessity, skepticism, high costs, as well as privacy and
the next level. However, there are factors security all stand in the way of mainstream smart home adoption.
predominantly related to lack of necessity,
skepticism, high costs, as well as privacy
and security that hinder the potential of
smart homes. Today, 29% of internet users in
the U.S. and the UK are either not interested SMART HOMES CONCERNS
in purchasing a smart home product or can’t % of internet users in the UK and the U.S. who don't plan to purchase a smart home product and think * Indexes are against the
average in the UK and U.S.
afford it. the following are potential downsides*

Smart homes are a convenience-driven

— rather than a necessity-driven — trend.
The main factor differentiating those
who are ready to buy from those that are
not interested in buying is not related to
compatibility or issues with the installation 10% | 1.40 IDX 32% | 1.35 IDX 14% | 1.34 IDX 52% | 1.27 IDX

process. Instead, consumers who are not I don’t think they’re I don’t think entire homes I’m quite sceptical about They’re too
useful/I don’t know should be connected to new technologies in expensive
interested in purchasing a smart home how to use them the internet general
product in the next year are 40% more
likely to lack the knowledge of how these
products can make their lives easier.
And although only a small share of them
say so (10%) this is the reason most likely
preventing them from purchasing. More
marketing and education would be needed 25% | 1.21 IDX 28% | 1.17 IDX 32% | 1.11 IDX 55% | 1.10 IDX
Question: What do you think
to convince these consumers of the value I’d be more lazy if They could over-com- I don’t know what Someone could are the potential downsides of
that the connected home can bring. I had one plicate simple things they do with my hack/control the smart home products, if any?
personal information devices Source: GlobalWebIndex July
2019  Base: 2,171 internet
users in the UK and the U.S.
who don't plan to purchase
a smart home product in the
next year
A Convenience-Driven Market

A lot of these users are also quite skeptical when it comes to connected
homes and new technologies in general. Almost a third say they don’t
think entire homes should be connected to the internet (Index 1.35) as this
makes them vulnerable to security breaches, which is a major concern of
over half of them. Indeed, with 80% of IoT devices vulnerable to a range of
attacks, there are still not sufficient security measures in place in the smart
home market to prevent device hijacking.

Cost is one of the biggest barriers to adoption of every major

technologically advanced trend, especially in mature markets like the U.S.
and the UK. 52% of people who aren’t interested in purchasing say these
products are simply too expensive, jumping to 59% among millennials.
However, this is an issue that is waning with time. As the market is
becoming saturated with products and the competition is increasingly
heating up, prices are slowly being pushed down.

There is still a widespread consumer misconception that just because

they are intelligent connected gadgets, smart home products have to be
expensive. This is not necessarily the case anymore, as we’re seeing the
proliferation of budget smart home products and devices that just 3 years
ago were three times what they’re sold for today. This means that if smart
homes are to become widespread, brands need to work toward removing
the premiumization that is still attached to these devices.

Connected devices don’t necessarily need to be

premium products.
A Convenience-Driven Market

BARRIERS TO ADOPTION 27

Consumers are increasingly losing their trust
in how their personal data is being used
following the multitude of privacy breach
scandals in recent years. Privacy concerns
sit at the center of what prevents smart
homes from entering the consumer market
at scale. The unknown around how personal
information is being handled is the third-
most popular downside that smart home
intenders list, after other concerns like fear
of someone taking control over the devices
and high price tags.
Moreover, our global data shows that smart
home owners are already acutely aware of
their online footprint – 63% are concerned
about the internet eroding their personal
privacy, with two thirds saying they worry
about how their personal data is being used
by companies. They are also clearly inclined
to take measures in controlling their
personal information. 66% of this audience
are using “private browsing” functionalities
and 62% are using ad blockers every
month. In each case, smart home owners
are significantly ahead of the curve for using
these tools too.
The balance between convenience,
privacy and security for new technologies
comprising the automated home often
rests upon brands being transparent with
their customers. Educating them about the
value exchange between data collection and
meaningful interactions for consumers will
be especially important as these gadgets
expand their presence throughout homes
worldwide.

ONLINE PRIVACY CONCERNS

% of smart home product owners who agree with % of smart home product owners who have done
the following statements the following in the last month

66% 62% 62% 46%

63% 66%
1.21 IDX 1.22 IDX 1.15 IDX 1.43 IDX

Question: To what extent do

you either agree or strongly
agree with the statements
I am concerned about I worry about how my Used a private browsing Used an ad-blocker to Deleted cookies from Used a Virtual Private below? /// In the last month,
the internet eroding my personal data is being window (e.g. Chrome stop ads being displayed your internet browser Network (VPN) or Proxy which of these have you done?
personal privacy used by companies Incognito, Microsoft Server Source: GlobalWebIndex
Q1 2019  Base: 14,782 smart
InPrivate window)
home product owners aged
16-64
Notes on Methodology
All figures in this report are drawn
from GlobalWebIndex’s online
research among internet users aged
16-64. Please note that we only
interview respondents aged 16-64
and our figures are representative
of the online populations of each
market, not its total population.
For an in-depth explanation of
GlobalWebIndex’s research and
methodology, including information
on our country coverage, internet
penetration rates, our sample
structures, and much more, please
click here.
SAMPLE SIZE BY MARKET
Unless otherwise stated, the data in
this report is taken from a bespoke
survey from July 2019 among 2,221
(U.S.) and 2,325 (UK) smart home
product intenders aged 16-64.
Please note, where clearly stated,
this report also draws insights from
GlobalWebIndex’s ongoing global
Core research.
OUR RESEARCH
As part of our ongoing global
research, each year GlobalWebIndex
interviews over 575,000 internet
users aged 16-64 across 46 markets.
Respondents complete an online
questionnaire that asks them a
wide range of questions about their
lives, lifestyles and digital behaviors.
We source these respondents
in partnership with a number of
industry-leading panel providers.
Each respondent who takes a
GlobalWebIndex survey is assigned
a unique and persistent identifier
regardless of the site/panel to which
they belong and no respondent can
participate in our survey more than
once a year (with the exception of
internet users in Egypt, Saudi Arabia
and the UAE, where respondents are
allowed to complete the survey at
6-month intervals).
28
OUR QUOTAS
To ensure that our research is
reflective of the online population
in each market, we set appropriate
quotas on age, gender, and
education — meaning that we
interview representative numbers of
men vs women, of 16-24s, 25-34s, 35-
44s, 45-54s and 55-64s, and of people
with secondary vs tertiary education.
To do this, we conduct research across
a range of international and national
sources, including the World Bank,
the ITU, the International Labour
Organization, the CIA Factbook,
Eurostat, the US Bureau of Labor
Statistics as well as a range of national
statistics sources, government
departments and other credible and
robust third-party sources.
This research is also used to calculate
the ‘weight’ of each respondent;
that is, approximately how many
people (of the same gender, age,
and educational attainment) are
represented by their responses.
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 Jason Mander Viktoriya Trifonova
Chief Research Officer Senior Insights Analyst & Writer

jason@globalwebindex.com viktoriya@globalwebindex.com

www.globalwebindex.com
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