Smart homes

in 2020
Observing the latest trends on smart home
products and their owners

TRENDS REPORT 2020

globalwebindex.com
Smart homes in 2020
What's inside?
03 Introduction
04 Key insights
05 Smart homes in 2020
11 Factors in ownership
20 Reaching the consumer
23 CSR
28 Key implications
30 Notes on methodology
32 More from GlobalWebIndex
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demographics, over time and among custom
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starting from left to right. Any charts which do
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02
Smart homes in 2020
Introduction
GlobalWebIndex's smart homes trends report
provides the most important insights on
smart home devices, from ownership of these
products worldwide to the attitudes of current
This report focuses on:
Smart homes in 2020 – What are the top
markets for smart device ownership? And
what the impact has COVID-19 had on the
industry?
Factors in ownership – What matters most
to consumers considering purchasing a
smart home device?
globalwebindex.com
and potential owners. This includes a focus on
how COVID-19 and an increased awareness of
sustainability is set to impact the industry.
Reaching the consumer – What strategies
should brands be considering when
targeting smart home product owners
online?
Corporate social responsibility – How
important is CSR and eco-consciousness
to smart home product consumers?
Methodology
All figures in this report are drawn from
GlobalWebIndex’s online research among
internet users aged 16-64. We only interview
respondents aged 16-64 and our figures are
representative of the online populations of
each market, not its total population. Note that
in many markets in Latin America, the Middle-
East and Africa, and the Asia-Pacific region,
low internet penetration rates can mean online
populations are more young, urban, affluent and
educated than the total population.
Each year, GlobalWebIndex interviews over
688,000 internet users aged 16-64 via an online
questionnaire for our Core dataset. A proportion
of respondents complete a shorter version of
this survey via mobile, hence the sample sizes
presented in the charts throughout this report
may differ as some will include all respondents
and others will include only respondents who
completed GlobalWebIndex’s Core survey via
PC/laptop/tablet.
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.
CUSTOM RECONTACT RESEARCH
This research was conducted throughout July
2020 in the UK and U.S. only and develops on
key findings from our global and coronavirus
research.
DEFINING SMART PRODUCT INTENDERS
Smart product intenders are defined as internet
users who say they, or anyone in their household,
intend to buy any form of smart home product
in the next 12 months. This definition rendered a
sample of 1,229 smart home product intenders
aged 16-64 in the UK and U.S.
03
Smart homes in 2020
Key Insights
01
Working-from-home is driving
smart product adoption
As remote working becomes more
commonplace, this provides an
opportunity for smart home products.
73% of smart home product owners
are interested in working from home
permanently, meaning smart meters
and other utility products can assist in
controlling bills as energy consumption
increases in tandem.
globalwebindex.com
02
Device integration is
a must-have
Smart product intenders want these
devices to integrate with one another
or be operated remotely. In fact, 1 in 5
say a major downside is that different
devices aren’t compatible with each other,
meaning brands should be promoting
this function where possible to encourage
adoption.
03
Privacy is a hurdle, but one
that can be overcome
Privacy concerns are considered the main
downside for intenders of these devices,
falling just behind cost as a demotivating
factor for ownership. However, though
smart home product owners are 10%
more likely than average to say they worry
about how companies use their personal
data online, they’re also 29% more likely
to say they feel in control of it.
04
Favorable brands will
see repeat custom
Given the importance of device
integration to smart product intenders,
we can assume they intend on acquiring
more of these devices in the future. With
58% loyal to brands they like, brands
who nurture a relationship with these
consumers will secure more than a one-
time purchase.
05
Eco-consciousness is
a budding mentality
Among UK and U.S. smart product
intenders, 1 in 5 say they check for
information on the sustainability and
environmental impact of personal
electronics before purchasing them. An
additional 3 in 4 smart home product
owners say companies behaving in more
sustainable ways has become more
important to them after the outbreak
meaning brands need to reciprocate
their concerns.
04
01
Smart homes in 2020

Smart homes
overview
Smart homes in 2020

One year on
TOP 10 MARKETS In our last look at smart homes, SMART HOME PRODUCT OWNERSHIP OVER TIME
% of internet users in each market who own a smart home product we witnessed a booming market % of internet users in each region who own a smart home product
racing to an expected $151 billion
Q1 2019 Q2 2020 valuation by 2024. Now, global Q1 2019 Q2 2020
smart home product ownership sits
UK 16% 21% 9 10 %
at 10%, severely impacted by the 17 19 %
COVID-19 pandemic, as sales are
expected to decline by 5-10% in this Europe
U.S.A. 18% 19% 13 11 %
fiscal year.
North America
Canada 12% 18% In APAC, a slow decline in smart 6 5 % Asia Pacific
home ownership can be mainly 7 7 %

Turkey 17% 15% attributed to China, where 12 10 % MEA

ownership has dropped slightly Latin America
along with a slew of other digital
Ireland 12% 15% behaviors since the pandemic. Global
Although reasons for ownership
China 16% 13% decline can be complex, supply But ownership is still growing in At the same time, MEA remains
chain disruptions can help explain Europe and North America, the the lowest for smart home
a lack of growth in the smart home latter of which remains number one penetration with just 5% ownership,
Sweden 12% 13%
market here. for regional adoption where almost followed closely by LatAm (7%). EX P LO R E DATA
a fifth of its online population own These regions offer promising
Australia 11% 12% Exclude China, and APAC figures a smart home product. Their stable opportunities with their burgeoning Question: Which of the
following devices do
level out slightly. Meanwhile in the growth is owed, in part, to the likes internet population but, ultimately,
you own? (Smart home
U.S., where smart home growth of the UK (21%), Canada (18%), and lifestyle changes in response to the product)
India 14% 12%
experienced a $14 billion cut in Ireland (15%) – with the UK now the outbreak will dictate the course of Source: GlobalWebIndex
Q1 2019 & Q2 2020
2020, uncertainty about the ongoing world’s leading market for smart future smart home success here and
Base: 139,397 (Q1 2019)
Vietnam 14% 12% trade war is still a concerning factor. home ownership. worldwide. and 179,219 (Q2 2020)
internet users aged 16-64

globalwebindex.com 06
Smart homes in 2020

Smart homes by device

SMART PRODUCT OWNERSHIP BY DEVICE TOP 3 MARKETS
% of global smart home product owners who have the following devices

Smart speaker Smart security product Smart utility product Smart speakers are
(e.g. Amazon Echo) (e.g. remotely controlled security camera) (e.g. remotely controlled plug, light)
the most popular Smart speaker

smart home device, UK Japan U.S.A.

having climbed eight

percentage points 87% 84% 84%
since Q1 2019
Global APAC Europe LatAm MEA NorthAm

63% 61% 62% 49% 43% 83% Smart security product

Argentina Saudi Arabia Egypt

57% 54% 54%

42% 41% 28% 43% 43% 34%

EX P LO R E DATA

Question: Which of these

38% 44% 42% 38% 37% 41% Smart utility product smart home devices do you
own?
Israel Romania Austria Source: GlobalWebIndex
Q2 2020
Base: 20,866 smart home
7% 6% 11% 11% 15% 2% 59% 57% 56% product owners aged
Other 16-64

globalwebindex.com 07
Smart homes in 2020

Smart home owners

% of global smart home product owners who are...

Gender Employment status

Full-time worker
63%

Male Female
55% 45%

Age

16 to 24 25 to 34 35 to 44 45 to 54 55 to 64
24% 32% 24% 13% 7%
Student Part-time worker
11% 7% EX P LO R E DATA

Question: Which of the

Income Unemployed Full-time following devices do
4% parent you own? (Smart home
Self-employed/Freelancer 2% product) | What is your
9% current working status?
Retired Source: GlobalWebIndex
Other
3% 1% Q2 2020
Base: 20,866 smart home
Low Medium High Don't know/prefer not to say product owners aged
23% 32% 40% 5% 16-64

globalwebindex.com 08
Smart homes in 2020
Smart home owners
Generally, we most associate
smart home devices with young,
high-earning individuals and our
data proves this continues to be
the case. With over 4 in 10 smart
home product owners classed
as millennials (44%), and 40%
occupying the high
income segment.
However, with a rising
dependence on the home
environment for work, schooling
and even socializing, it’s worth
segmenting smart product owners
by life stage to understand how
these products will appeal in the
post-covid landscape.
Using this data, we can see that
smart home product owners
make for a working audience of
homeowners, with 81% saying
they own at least 1 property and
63% in full-time employment.
Additionally, 56% are married
while a further 57% are parents – of
which 81% say their children live
with them.
globalwebindex.com
HOUSEHOLD LIVING Smart home audiences in these HOME OWNERSHIP
ARRANGEMENTS segments should be a priority % of smart home product owners who own the following number of properties
% of smart home product owners for brands. They’re living in busy
who say they live with the following households and, fueled by a
1 2 0
growing need for remote working 43% 20% 19%
or learning, will likely come to rely
on technology more. To better
My partner 60%
understand the role smart home
devices will play here, we can use
My child(ren) 47% data from wave 5 of our coronavirus
study across 18 markets, looking at
My parent(s) 35% those interested in working from
home permanently in the future.
Other family
15%
member(s) Among smart home product
owners, 73% are interested in EX P LO R E DATA
I live alone 6% 3+
working from home permanently.
18%
For this group of hopefuls, smart EX P LO R E DATA
Roommate(s)/ speakers are the most popular
3%
friend(s)
device (77% own one) while utility EX P LO R E DATA
Others and security products fall behind
1%
(35% and 32%, respectively). But
now we’re beginning to see Question: Who lives in
Smart home product the effects of increased energy your household? | How
many houses/properties do
consumption on households,
owners are 21% more you own?
signalling a possible boom Source: GlobalWebIndex
likely to be in full-time for smart utility products Q2 2020
employment than the as remote working becomes
Base: 20,866 smart home
product owners aged
average internet user more commonplace. 16-64
09
Smart homes in 2020

Smart home intenders

ENTERTAINMENT OUTSHINES OTHER SMART HOME FUNCTIONALITIES
% of UK/U.S. smart home product intenders who are planning to buy products from the following categories

A clear example of this are smart 90% of smart home

health devices, having otherwise
product owners in
remained stable (24%), and
experiencing a six-percentage-
18 markets say they
50% 38% 35% 32% point increase among UK intenders delayed making big
Entertainment Security & Control Smart Voice Assistant Energy & Lighting
(e.g. smart TV) (e.g. security camera) (e.g. Amazon Echo) (e.g. smart lightbulbs)
in the past year. All signs point to purchases, such as
the pandemic, but not among the smart devices
audience we might initially perceive.

Though COVID-19 is considered a

24%
Health
(e.g. smart fan)
In custom research fielded in July
2020, we found that half of internet
users in the UK and U.S. say they
intend to buy a smart home product
from any category in the next
12 months.
All devices, outside health and
entertainment – the latter of which
proved popular prior to and during
17%
Domestic Appliances
(e.g. smart fridge)
the lockdown – have experienced
decline since 2019. Economic
uncertainty is a major cause here,
and the pandemic has added to this,
with the outbreak increasing the
importance of personal finances to
46% of smart home intenders.
Though previously strong
performers such as domestic
5%
Other
appliances fell as much as nine
percentage points, cost has always
been a factor in smart device
adoption. And it’s worth noting
that the outbreak, much like we
saw with energy consumption,
is creating new needs for smart
devices to adapt to.
greater threat to older audiences
(generally deemed high-risk), the
interest in smart health devices is far
greater for intenders who are Gen
Zs or millennials (30%) than Gen
Xers or baby boomers (16%).
Though younger audiences are
generally more interested in
Question: Are you, or
smart products, their likelihood to anyone in your household,
consider health devices reaffirms planning to buy a smart
home product in any of the
the importance of life stage here.
following categories in the
Furthermore, exercise grew more next 12 months?
important to 49% of intenders, kick- Source: GlobalWebIndex
July 2020
starting a health drive that’s likely
Base: 844 (U.S.) and 385
contributed to these devices' appeal. (UK) smart home product
intenders aged 16-64

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02
Smart homes in 2020

Factors in ownership
Smart homes in 2020

Motivators overview
MULTIPLE PROBLEMS REQUIRE SMART SOLUTIONS TOP OVER-INDEX BY GENERATION
% of UK/U.S. smart home product intenders who are motivated to buy by...

Price Home security is

55%
most important Gen Z (aged 16-23) Millennials (aged 24 -37)
Understanding my preferences Understanding my preferences
Reducing the cost of my energy bills to intenders who
42%
are parents (42%) 1.19IDX 1.22IDX
Making my home more secure or baby boomers
39% (48%) – while just
Being able to operate my devices remotely 33% of Gen Zs
32% intenders say the Gen X (aged 38-56) Baby boomers (aged 57–64)

Integration with other apps/devices I use

same Reducing my energy bills’ cost Making my home more secure

32% 1.06IDX 1.23IDX

Saving the most time in my day-to-day life
29%

Buying from a brand I like/know

28%

Security for my personal information/data

28%
Question: Which of the
following factors would
Understanding my preferences
most motivate you to buy a
20%
smart home product?
Source: GlobalWebIndex
Other July 2020
2% Base: 844 (U.S.) and 385
(UK) smart home product
intenders aged 16-64

globalwebindex.com 12
Smart homes in 2020
The smart lifestyle
Cost is more important than ever. It was
before the outbreak and will continue to
be a priority for intenders, of which 55%
say price is the most important factor in
motivating them to purchase a product.
Instead, to achieve mainstream adoption,
brands need to emphasize the problem-
solving capabilities of a smart household.
With rising energy consumption and
healthcare awareness, smart devices are
placed to tackle more needs. Intenders
want to optimize their lifestyle, and expect
this from smart devices by reducing their
energy bills (42%), securing their homes
(39%) and saving them time in the day-to-
day (29%).
But a key problem in acquiring
more smart products is successfully
overcoming the difficulty of connecting
multiple devices at once. This shifts
globalwebindex.com
our focus to the Internet of Things – the
ability of the internet to connect different
devices and enable them to send and
receive data.
Internet speed isn’t the main concern
here. Even among those not interested in
purchasing a smart home device – just 6%
are worried their internet will be strained
by multiple devices.
Instead, it’s about harmony. Connection is
important to intenders, given over 3 in 10
say they want these devices to integrate
with one another, or be operated
remotely. A major downside for this
audience is that different smart products
aren’t compatible with each other
(24% say this). In order to drive further
adoption, brands need to be promoting
features or services that eliminate this
problem.
Smart home product
owners are 58% more
likely than average to
say they purchase new
tech products as soon as
they are available
Even with multiple devices active at
one time, their tech-savvy nature means
intenders have little issue with installation
and setup. Just 1 in 5 say they feel
installation is difficult, with millennials the
most likely to say this (27% do) – more
than any other generation, even baby
boomers (21%).
13
Smart homes in 2020

The smart lifestyle

HOME APPLIANCE PURCHASE INTENT
% of global smart home product owners who are thinking about purchasing 13% 1.54IDX
14% 1.51IDX
the following in the next 3-6 months (sorted by over-index)

15% 1.41IDX
14% 1.36IDX

18% 1.28IDX 15% 1.29IDX

16% 1.22IDX

Refrigerator Flat-screen TV Microwave Washing machine/ Vacuum cleaner Home exercise Dishwasher
tumble dryer equipment

Smart home product owners are
tech-savvy, but they also embody a
status-oriented consumer mindset,
with 3 in 10 saying they tend to
purchase the premium version of
products (Index 1.55). They want the
latest – and best – devices when it
comes to optimizing routine
lifestyle activities.
By recognizing the potential of
home appliances in the smart
home market, retailers are offered
a crucial opportunity to cross-sell
these devices with smart products.
This means identifying where
any existing household or
lifestyle chores can be improved
upon – even without smart devices.
For example, in the next 3-6
months, smart home product
owners are over 50% more likely
than average to plan to purchase
a dishwasher or home exercise
equipment – with vacuum cleaners
(Index 1.41) and washing machines
(Index 1.31) close behind.
Those who recently purchased a
house/property should be a priority
EX P LO R E DATA
here. Keen to fill their new homes
with essential devices, over 3 in 10 Question: Which of
of this audience say they intend to these items are you / your
household thinking about
purchase a microwave, refrigerator,
purchasing in the next 3-6
vacuum cleaner or a washing months?
machine in the next 3-6 months. Source: GlobalWebIndex
Q2 2020
Base: 20,866 smart home
product owners aged
16-64

globalwebindex.com 14
Smart homes in 2020

•  TREND IN ACTION  •

The stay at home incentive

Consumer preferences have been shifting toward

ecommerce, online entertainment and education for
over a decade. But the pandemic is accelerating this
faster than ever.

For example, Amazon hired 175,000 workers in

the U.S. since March to accommodate surging
online demand, while Disney+ saw a 75% increase
in subscribers since February – surpassing over
50 million active users in its first 5 months. In
households where smart TVs offer multiple ways
to be entertained and smart assistants compile
shopping lists on-demand, harmonizing these
devices is becoming a necessity.

Apps, such as Homey, are crucial here. Brands don’t

necessarily need to incorporate integration as a
primary feature within their products, so long as
they’re permitting this function via a third-party app.
Additionally, they cater to multiple brands, meaning
users with sizable device portfolios don’t need to
stick to a single developer when purchasing
more devices.

globalwebindex.com 15
Smart homes in 2020

Demotivators overview
NON-INTENDERS NEED A USE FOR SMART HOME DEVICES
% of UK/U.S. smart home product non-intenders who cite the following reasons for not buying

I don't need one right now

43% Cost is one of the main
I don't feel they are necessary
deterrents in smart
40% product adoption, even
They're too expensive
among affluent groups
34%

I worry how my personal data may be used

19%

I worry they could be hacked

19%

I already own the ones I need

10%

I don't have a device that supports them right now

7%

I worry about the strain on my internet connection

6% Question: You say you're
not planning on buying
I don't know how to use them any smart home products
6% in the next 12 months.
Which of the following best
describes why?
I worry about their energy consumption
Source: GlobalWebIndex
5%
July 2020
Base: 1,156 (U.S.) 616 (UK)
I don't believe they're made sustainably smart home product non-
3% intenders aged 16-64

globalwebindex.com 16
Smart homes in 2020
Barriers to adoption
Emphasizing the benefits of a
connected household is key in
attracting new would-be smart
device owners.
The 50% of UK and U.S. internet
users, however, who have no
intention of purchasing these
devices in the next 12 months
pose a different challenge – they
don’t believe these products are
necessary (40% say this), with a
further 43% saying they don’t need
one right now.
Even cost is less of a concern
here (34%). Instead, the challenge
for brands is recognizing which
problems these users are yet to
encounter. To do this, we need to
understand what became important
to this audience during lockdown,
and showcase the benefits of smart
products in handling them.
For example, 38% of non-intenders
say exercise – a well-documented
outbreak trend – became more
important during lockdown, which
globalwebindex.com
is something smartwatches are well FINANCE & SELF-IMPROVEMENT BECAME LOCKDOWN PRIORITIES
positioned to assist with. Cooking – % of UK/U.S. smart home product non-intenders/intenders who say the
another noticeable activity – became following became more important during lockdown
a frequent lockdown hobby for
44% of this audience. Though just Non-intenders Intenders
9% feel smart products could assist
with this, it demonstrates how users
are adopting new habits where
they’ve yet to realize smart product
potential.
38% | 46% 38% | 48% 33% | 40%
Though non-intenders in the UK Personal finances Exercise/wellbeing Home maintenance
and U.S. share generally similar
reservations for smart device
adoption, finances became a
higher priority in the U.S. (40% say
this), nine percentage points ahead
of the UK. Brands should shift their
focus to smart utility products here, 31% | 37% 25% | 36% 17% | 34%
where – using data from our U.S.A. Relaxation time Organizing my Saving energy costs
day-to-day life Question: Which of the
dataset – these products are already
following became more
more commonplace, with 1 in 4 important to you while at
owning either a smart thermostat, home during lockdown?
Source: GlobalWebIndex
lightbulb or plug.
July 2020
Base: 1,156 (U.S.) 616 (UK)
smart home product non-
intenders and 844 (U.S.)
6% | 18% 6% | 26% 21% | 3%
and 385 (UK) smart home
product intenders aged
Interior decoration/ Home security None of the above
16-64
design
17
Smart homes in 2020
The privacy debate
Smart product owners
are 10% more likely than
average to say they worry
about how companies use
their personal data online.
At the same time, they’re
also 29% more likely to say
they feel in control of it
The concern of privacy is not a new one,
with 36% of smart product owners worried
about how companies use their personal
data online. But in a time where track
and trace apps are being championed
as necessary tools for protecting society,
attitudes are being called into question.
The idea surrounding smart assistant
listening capabilities has been the
subject of debate for some time now,
and smart home product owners are
likely to be aware of this. They do their
research – 65% say they do this online
before purchasing a product, while
globalwebindex.com
an additional 41% say they consider Despite this, brands need to bear in mind
expert opinions before doing so. With that privacy is, and always will be, a key
this in mind, brands should be upfront priority for smart product consumers –
about their privacy policies and the full- while concerns vary depending on who’s
capabilities of these products to avoid breaching that privacy, there are major
appearing disingenuous. repercussions for brands that choose to
ignore this important barrier to smart
Privacy is not a concern unique to a product adoption.
single age group – it matters to everyone.
For example, 55-64s in this audience are
the most concerned with how companies
use their personal data (46% say this).
Though this falls to 36% for 16-24s, their
concerns are instead directed toward
governments, with 24% worrying how
the government tracks them online – 20%
more likely than the average.
Though the general fear of data-breaches
is always a concern to owners of these
devices, they demonstrate the privacy
paradox in action. For example, though
fearful of intrusions to their private lives,
smart home product owners are 40%
more likely than average to use social
media to share details of what they’re
doing in their daily life.
18
Smart homes in 2020

The privacy debate

For smart product intenders, CYBERCRIME CONCERNS AMONG SMART BUYERS
hacking concerns are generally % of UK/U.S. smart home product intenders in the following categories who say these are potential downsides of smart
considered the main downside home products
of these devices, with hacking
(38%) narrowly falling behind Someone could hack/control the devices I don't know what they do with my personal information
cost (39%) among all UK and U.S.
intenders. But in the UK this climbs All smart home Assistant Energy Entertainment Security
intenders intenders intenders intenders intenders
seven percentage points ahead of
expense, with 37% in this market
considering it the primary downside
of smart home products.

38% 40% 40% 41% 46%

Cybercrime is on the rise, but it’s
a concern the average consumer
shouldn’t necessarily have to
worry about more than the likes
of businesses or governments –
each of which are increasing
their preventative strategies. As
these become more reliable,
so do the measures available to
the public – it’s just a matter of
reminding consumers that this
28%
privacy. Despite fears regarding
the data storage habits of smart
home assistants, those interested
in purchasing these products fall
29% 30%
concern for hacking or personal
data breaches, with hacking cited by
46% of this audience. Smart security
products contain a broad range of
29% 33%
Question: What do you
overnight, and they’re an audience 38% of smart think are the potential
downsides of smart home
that’s willing to listen to ways of home intenders are products, if any?
preventing it. Brands should keep
consumers informed of even the
concerned someone Source: GlobalWebIndex
July 2020

is the case. in line with all intenders for data devices from CCTV doorbells to most basic security measures, such may hack their Base: 844 (U.S.) and 385

Looking at intenders in relation to
what smart device they’re interested
in purchasing, it’s clear how hacking
is a greater concern than data
privacy concerns (around 3
in 10 say this).
Instead, those looking to buy smart
security devices show the greatest
digital keys – all of which come with
the potential risk of cyber-attacks.
Smart product owners know
cybercrime isn't going to go away
as strong passwords or VPNs – used
by 38% of smart product owners
in the last month – that can
dramatically reduce the
risk of hackers.
devices, but just 19% (UK) smart home product
intenders; 417 voice
of non-intenders say assistant intenders, 400
energy intenders, 574
the same entertainment intenders
and 471 security intenders
aged 16-64

globalwebindex.com 19
03
Smart homes in 2020

Reaching the
consumer
Smart homes in 2020

Online behaviors
ONLINE, THEY'RE LIKELY WHERE THE COMMUNITY IS Among smart home product
% of smart home product owners (outside China) who have actively engaged owners, 67% say they would
with any of the following sites in the past month (sorted by over-index) typically rather shop online than
in store – rising to 72% in APAC.
As such brands need to be active
online, but cultivating a relationship
through social media means more
than being present, it involves
18% 1.52IDX 16% 1.37IDX 27% 1.30IDX
tapping into the wider community.
Evident from their receptiveness to
Reddit Twitch Snapchat word-of-mouth recommendations
(36% discover brands in this
manner) and 46% who trust what
online reviews say about products,
purchase. Image is at stake here,
these consumers are talking and
they want brands to listen to their
feedback (50% say this).
It’s not enough to simply advertise
on social media, brands need to
understand how this audience uses
these sites. By doing this, brands can
be assured they are engaging with
this audience on the appropriate
platform and not getting lost amid a
sea of other content.
For example, around 3 in 10 say
20% more likely than average. In the
past month, smart product owners,
outside of China, actively engaged
or contributed to Reddit (18%) or
Pinterest (27%), where brand-made
content and interaction isn’t just
accommodated, but welcomed.
Using this audience’s connected
mindset, brands can then start
the conversation by engaging on
forums, producing vlogs or even
using celebrity endorsement –
especially with COVID-19
accelerating the already booming, EX P LO R E DATA

smart device owners value an they use social media to share their $6.5 billion industry of
27% 1.28IDX 27% 1.25IDX 26% 1.18IDX informed opinion before making a opinion or research new products, influencer marketing. EX P LO R E DATA

Question: How do
you typically find out
LinkedIn Pinterest TikTok Smart home product LIKE THEIR PRODUCTS, SMART CONSUMERS TALK TO EACH OTHER about new brands and
products? | Which of the
% of global smart home product owners who typically find out about new
owners are 40% more following services have you
brands and products through the following (sorted by over-index)
likely than average actively engaged with or
contributed to in the past
to buy a product to 16% 1.35IDX
22% 1.34IDX
month via any device?

access the community 17% 1.33IDX

19% 1.32IDX 15% 1.32IDX
Source: GlobalWebIndex
Q2 2020
36% 1.13IDX 46% 1.04IDX 53% 1.00IDX
around it Base: 20,866 smart home
product owners and 17,365
Forums/ Purchase Vlogs Celebrity Ads seen smart home product
message suggestions endorsements at the owners (outside China)
Twitter Instagram Facebook boards on websites cinema aged 16-64

globalwebindex.com 21
Smart homes in 2020

Brand relationship & advocacy

As is the case with an active audience of vocal or enhancing their online reputation (21%) BRANDS SHOULD CULTIVATE A PERSONAL RELATIONSHIP WITH SMART BUYERS
networkers, feedback is a certainty. In the past through optional features like Reddit awards or
month, 56% of smart product owners posted Facebook badges. % of global smart home product owners % of smart home product owners who say
a review of a product, company or service who say the following would motivate them brands should do the following (sorted by
online – rising to 62% and 60% for millennials Additionally, their motivations for advocacy to promote their favorite brand online over-index)
and parents in this audience, respectively. fall in line with what this audience wants from (sorted by over-index)
brands. Those who can improve their image
Brands should already be nurturing a or reputation will be well received by smart Access to exclusive content IDX Help you improve your IDX
or services image/reputation
relationship with these consumers, but it’s not home product owners, but also from around
26% 1.30 29% 1.28
just to secure a one time purchase – 58% say 1 in 5 homeowners, parents and 16-24s in this
they are loyal to brands they like. Given the audience. They can even take this further by
importance of device integration to smart harmonizing like-minded consumers through
When something enhances my Run customer
product intenders, we can assume they intend their own, brand-run customer forums, of
online reputation/status communities/forums
on acquiring more of these devices in the which over 1 in 5 say brands should provide. 21% 1.30 22% 1.25
future and favorable brands can prepare to With all their consumers under one roof, it’s
reap the benefits. easier to reach them, educate them and, most
importantly, make them feel special.
When I have a personal Help you organize/ EX P LO R E DATA
To achieve this, we need to bear in mind their relationship with a brand simplify your life
community-oriented behaviors. They’re part of Despite being the leading 27% 1.27 46% 1.24
EX P LO R E DATA
a group, not a flock, meaning brands should markets for smart home
aim to cultivate a personal relationship with
product ownership, around Question: What would
the individual – something 27% of smart Having insider knowledge Offer customized/
product owners say would motivate them
just 1 in 3 UK and U.S. smart about the brand or its products personalized products
most motivate you to
promote your favorite

to promote a brand online. This also entails product owners left an online 26% 1.24 37% 1.24 brand online? | Which of
these things do you want
offering access to exclusive content (26%) review in the past month brands to do?
Source: GlobalWebIndex
Q2 2020
When something is relevant Help you improve your
Base: 20,866 smart home
to my friends' interests knowledge/skills
product owners aged
26% 1.24 43% 1.23 16-64

globalwebindex.com 22
04
Smart homes in 2020

Corporate social
responsibility
Smart homes in 2020

Altruism & the smart consumer

SMART HOME CONSUMERS SUPPORT SOCIALLY-AWARE BRANDS
% of global smart home product owners who say they want brands to do the following

Be socially responsible All smart product Gen Z Baby boomers High

owners Parents (aged 16–23) (aged 57–64) earners
Be eco-friendly
Support charities
51% 51% 52% 53% 49%

49% 47% 53% 49% 46%

32% 31% 36% 30% 31%

While owners of smart products are quick
to advocate brands that spotlight them as
individuals, they share an altruistic view too.
Concerning brands, over half (52%) in this
audience want authenticity while an additional
51% say they should be socially responsible –
rising to 54% for 55-64s.
Social responsibility and eco-consciousness
isn’t tied to one age or group – it’s a matter
that affects everyone and smart home product
owners exemplify this. Baby boomers and
Gen Z are almost on par with one another for
wanting brands to be socially responsible (53%
vs 52%, respectively), with the gap remaining
Charities, however, prove less of a priority to 54% of smart home
this audience, with Gen Zs the most likely to
product owners say that
say brands should support them (36%) while
around 3 in 10 say this elsewhere. Though
helping the environment
supporting charities would arguably contribute is one of their most
to fighting climate change or improving important values, 1.2x the
society, 1 in 4 smart product owners say they average EX P LO R E DATA

Environmental concerns are quickly rising.
In wave 5 of our coronavirus survey, 3 in 4
smart product owners across 18 markets say
reducing their environmental impact is more
important now following the outbreak.
close concerning being eco-friendly. While donate to charity at least once every two weeks.
Question: Which of these
these figures for eco-friendly brands trail This audience wants brands to take on big
things do you want brands
slightly among parents (47%) and high earners responsibilities with them, and are happy to to do?
(46%), these concerns matter to them – and play their part where they can. Source: GlobalWebIndex
Q2 2020
they want brands to feel the same.
Base: 20,866 smart home
product owners aged
16-64

globalwebindex.com 24
Smart homes in 2020
•  TREND IN ACTION  •
Smart as houses
We’re seeing more reliance on technology than
ever, and that means generating more energy.
There are numerous devices that can assist in
controlling this – but now smart technology
is bringing a whole new meaning to the term
“smart homes”.
Construction will look very different after
COVID-19 as the outbreak has warranted
an urgent need for a new way of building
homes and offices. Etopia, the first modular
house construction company to achieve
carbon neutrality, looks to tackle a number of
globalwebindex.com
challenges facing the construction industry
using smart technology.
In a strategic partnership aimed at constructing
high-performance, energy efficient housing,
Samsung has teamed up with developer Etopia
in an effort to reduce the carbon footprint of the
construction industry.
The partnership includes plans to build 6,000
new houses in the UK over the next five years,
with Samsung technology and devices a staple
in every home.
25
Smart homes in 2020

Attitudes to sustainable technology

Big tech has come under pressure to take Consumers want to trust their favorite brands, SUSTAINABILITY CONCERNS VARY AMONG SMART HOME INTENDERS
responsibility for its part in environmental and offering incentives that show they’re % of UK/U.S. smart home product intenders in the following categories who check for information
sustainability, as major brands begin to rethink serious about these issues is a surefire way of on sustainability/environmental impact for the following (Personal electronics)
Personal electronics
their strategies and roadmap solutions to achieving this.
going green.
Recycling electronics in exchange for a All smart home Security Energy Assistant Entertainment
Among UK and U.S. smart product intenders, discount is one such initiative that companies, intenders intenders intenders intenders intenders

30 31
eco-consciousness is a budding mentality – such as AT&T, are already pushing – something
1 in 4 say they check for information on the
sustainability and environmental impact of
personal electronics before purchasing them.
28% of smart energy intenders say would
motivate them to buy from electronics brands.
Around 57% of all internet users upgrade their
23%
25 %
28 %
%
%
However, depending on the device they’re phones each year, so recycling these products
looking at, attitudes change. For example, just can massively reduce E-waste while alleviating
1 in 4 smart security consumers say they check environmental concerns when purchasing
these details before buying while over 3 in 10 personal electronics technology.
smart assistant or entertainment consumers say Question: Before
the same. buying, do you
check for information
on sustainability/
Digital technologies are responsible for around 3 in 4 smart home product environmental impact
4% of greenhouse gas emissions, an energy
owners say companies for any of the following
product categories?
use that increases by 9% per year – particularly
as streaming service subscriptions increase.
behaving in more (Personal electronics)
Source: GlobalWebIndex
Additionally, smart assistants, many of which sustainable ways has July 2020

remain switched on for indefinite periods of become more important to Base: 844 (U.S.) and 385
(UK) smart home product
time, are likely to cause more concern among them after the outbreak intenders; 417 voice
environmentally-conscious entertainment assistant intenders, 400
energy intenders, 574
intenders – compared to those considering
entertainment intenders
smart security products. and 471 security intenders
aged 16-64

globalwebindex.com 26
Smart homes in 2020

Sustainable Actions
SMART BUYERS SHARE AN ECO-CONSCIOUS MINDSET
% of UK/U.S. smart home product intenders who say the following would motivate them to buy an electronics product

All smart home Assistant Energy Entertainment Security

Intenders intenders intenders intenders intenders

15% of smart
Environmentally
21% 25% 24% 24% 24% product intenders say
friendly
packaging companies should be
transparent about their
supply chains – with
Discount for
recycling other 21% 24% 28% 22% 26% U.S. intenders 46%
electronics I own more likely to say this
and 16-24s 53% more Question: Which of the
likely following would most
If the device is motivate you to buy a
made from 16% 21% 24% 19% 17% personal electronics
recycled materials product (e.g. a mobile
device/a smart home
product)?
Source: GlobalWebIndex
July 2020
If the company is Base: 844 (U.S.) and 385
transparent about its 15% 18% 20% 20% 19%
(UK) smart home product
supply chains intenders; 417 voice
assistant intenders, 400
energy intenders, 574
entertainment intenders
and 471 security intenders
aged 16-64

globalwebindex.com 27
05
Smart homes in 2020

Key implications
Smart homes in 2020
Key implications
The smart market
rebounds
Hampered by the outbreak, the global
smart home market size is now expected
to grow from $78.3 billion in 2020 to
$135.3 billion by 2025. However, as
disruptions to the smart home market
recede – accompanied by an increased
demand for the services and features
provided by these devices – the smart
home market is estimated to rebound
to $317 billion in 2026, up 5% over pre-
COVID-19 forecasts.
globalwebindex.com
Smart devices have new
purposes to accomplish
As consumers worked from home,
exercised, and discovered new hobbies
in lockdown, they also discovered new
problems they need a solution for. Brands
need to emphasize the range of tasks
smart devices can accomplish. Convincing
them of the potential of these products,
and how they can impact the finer
aspects of their daily lives is key to future
adoption.
Multi-device integration
is key to adoption
Smart intenders are very eager to see
these devices work with one another –
implying they’re not satisfied with just
the one. Brands need to pay attention to
third-party apps that offer solutions and
showcase inter-device connectivity where
possible to keep those with larger device
portfolios in the know.
Keep this audience connected
and communicating
This audience’s heavy emphasis on
discussion, research and community
isn’t to be underestimated. It’s not
enough simply to advertise where they
are, instead brands need to show an
active participation in the groups these
consumers occupy. As post-COVID
behaviors give rise to online-communities,
brands should be present on forum-
based sites – or even creating their own –
to promote conversation, and offer in-
platform reward systems to appeal to their
status seeking nature.
Brands should go green,
and mean it
An increasing regard for eco-
consciousness and social equality has put
extra pressure on companies to showcase
their contribution to fighting widespread
social issues. Smart product owners are
likely to appreciate brands that do this
and, given their tendency to research
brands, will likely take note of who shows
honesty and authenticity in their actions
over those who don’t.
29
Notes on methodology
All figures in this report are drawn from GlobalWebIndex’s OUR QUOTAS GLOBALWEBINDEX Argentina 1,565 Morocco 954
online research among internet users aged 16-64. Please SAMPLE SIZE BY Australia 4,124 Netherlands 1,313
note that we only interview respondents aged 16-64 and To ensure that our research is reflective of the online MARKET
Austria 1,290 New Zealand 1,278
our figures are representative of the online populations of population in each market, we set appropriate quotas on
each market, not its total population. age, gender and education – meaning that we interview This report draws insights Belgium 1,337 Nigeria 1,025

representative numbers of men vs women, of 16-24s, from GlobalWebIndex’s Brazil 5,773 Philippines 3,261
OUR RESEARCH 25-34s, 35-44s, 45-54s and 55-64s, and of people with Q2 2020 wave of research Canada 4,916 Poland 2,085
secondary vs tertiary education. across 46 countries,
China 24,582 Portugal 1,309
Each year, GlobalWebIndex interviews over 688,000 with a global sample of
internet users aged 16-64 across 46 markets. Respondents To do this, we conduct research across a range of 179,219 respondents. Colombia 1,296 Romania 1,314

complete an online questionnaire that asks them a wide international and national sources, including the World Denmark 1,293 Russia 3,649
range of questions about their lives, lifestyles and digital Bank, the ITU, the International Labour Organization, the Egypt 1,779 Saudi Arabia 1,518
behaviors. We source these respondents in partnership CIA Factbook, Eurostat, the US Bureau of Labor Statistics as
France 5,172 Singapore 2,806
with a number of industry-leading panel providers. well as a range of national statistics sources, government
Each respondent who takes a GlobalWebIndex survey is departments and other credible and robust third-party Germany 5,209 South Africa 1,564

assigned a unique and persistent identifier regardless of sources. Ghana 891 South Korea 1,297
the site/panel to which they belong and no respondent Hong Kong 1,793 Spain 5,130
can participate in our survey more than once a year (with This research is also used to calculate the ‘weight’ of each
India 13,829 Sweden 1,278
the exception of internet users in Egypt, Saudi Arabia and respondent; that is, approximately how many people (of
the UAE, where respondents are allowed to complete the the same gender, age and educational attainment) are Indonesia 5,193 Switzerland 1,306

survey at 6-month intervals). represented by their responses. Ireland 1,287 Taiwan 2,301

Israel 1,276 Thailand 3,935

Italy 5,206 Turkey 2,081

Japan 3,343 UAE 1,793

Kenya 1,048 UK 10,329

Malaysia 2,849 U.S.A. 25,670

Mexico 4,365 Vietnam 2,607

Notes on methodology
MOBILE SURVEY RESPONDENTS INTERNET PENETRATION RATES ACROSS INTERNET Argentina 78% Morocco 69%
GLOBALWEBINDEX’S MARKETS PENETRATION RATES Australia 88% Netherlands 93%
From Q1 2017 on, GlobalWebIndex has offered our Core
Austria 88% New Zealand 93%
survey on mobile. This allows us to survey internet users GlobalWebIndex’s research focuses exclusively on the GlobalWebIndex’s
who prefer using a mobile or are mobile-only (who use internet population and because internet penetration Forecasts for 2020 Belgium 89% Nigeria 36%

a mobile to get online but do not use or own any other rates can vary significantly between countries (from a high based on 2018 ITU data Brazil 71% Philippines 64%
device). Mobile respondents complete a shorter version of 90%+ in parts of Europe to lows of c.20% in parts of Canada 94% Poland 79%
of our Core survey, answering 50 questions, all carefully APAC), the nature of our samples is impacted accordingly.
China 59% Portugal 78%
adapted to be compatible with mobile screens.
Where a market has a high internet penetration rate, Colombia 66% Romania 72%

Please note that the sample sizes presented in the its online population will be relatively similar to its total Denmark 97% Russia 80%
charts throughout this report may differ as some will population and hence we will see good representation Egypt 54% Saudi Arabia 83%
include both mobile and PC/laptop/tablet respondents across all age, gender and education breaks. This is
France 85% Singapore 85%
and others will include only respondents who completed typically the case across North America, Western Europe
GlobalWebIndex’s Core survey via PC/laptop/tablet. For and parts of Asia Pacific such as Japan, Australia and New Germany 88% South Africa 62%

more details on our methodology for mobile surveys Zealand. Where a market has a medium to low internet Ghana 48% South Korea 95%
and the questions asked to mobile respondents, please penetration, its online population can be very different Hong Kong 91% Spain 87%
download this document. to its total population; broadly speaking, the lower the
India 42% Sweden 96%
country’s overall internet penetration rate, the more likely
INTERNET PENETRATION RATES: it is that its internet users will be young, urban, affluent Indonesia 39% Switzerland 96%

GLOBALWEBINDEX VERSUS ITU FIGURES and educated. This is the case throughout much of LatAm, Ireland 87% Taiwan 83%
MEA and Asia Pacific. Israel 85% Thailand 58%
As GlobalWebIndex’s Core Research is conducted among
Italy 62% Turkey 71%
16-64 year-olds, we supplement the internet penetration This table provides GlobalWebIndex forecasts on internet
forecasts for a country’s total population (reproduced penetration (defined as the number of internet users Japan 92% UAE 95%

above) with internet penetration forecasts for 16-64s per 100 people) in 2019. This forecasted data is based Kenya 43% UK 96%
specifically. Forecasts for 16-64s will be higher than our upon the latest internet penetration estimates from the Malaysia 83% U.S.A. 80%
forecasts for total population, since 16-64s are the most International Telecommunication Union (ITU) for each
Mexico 69% Vietnam 55%
likely age groups to be using the internet. market that GlobalWebIndex conducts online research in.
 SEE MORE REPORT HERE
VIETNAM MARKET REPORT
COMMUNITY

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 Jason Mander Chase Buckle Thomas Morris
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jason@globalwebindex.com chase@globalwebindex.com tmorris@globalwebindex.com

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