Jordan O'BrienThe smart home market is continuing to grow in the UK, with research from PwC now suggesting that Britain’s households will spend £10.8 billion on smart devices next year.
The Disrupting Utilities report is based on a survey of over 2,000 consumers, and it’s the first in-depth look at the smart home market since PwC’s first connected home survey back in 2016. This new look shows that ownership of smart devices has more than doubled in the last two years; a figure that isn’t too surprising considering the increased proliferation of devices.
Smart home fever isn’t quite at hysteria levels just yet, with around 30% of respondents planning to purchase a smart device in the next two years. That’s up from 14% in 2016, although the UK still trails the US, where a similar survey suggested 52% of consumers had plans to kit out their home with smart devices.
Where Is Smart Home Growth Coming From?
Growth in the smart home market is mainly coming from those aged 18-35, with 59% having invested in smart entertainment, while 40% have purchased wearables. While demand is increasing in this area, this demographic is less likely to own a home, meaning DIY-level smart home products will be more preferable than a custom install system.
“The indifference we encountered in 2016 to the ‘Internet of Things’ energy revolution in the home has changed for many households,” says Ronan O’Regan, PwC’s digital utilities leader.
“Our latest analysis shows there is an increasing willingness to purchase connected homes devices and we anticipate this growth trend will continue to accelerate with the expectation that in 2019, £10.8bn will be spent on smart devices across the UK.
“While smart home assistants are relatively new to the market, we believe they could potentially be the ‘glue’ towards wider adoption. You could say they are having an ‘iPhone effect’ in the market.
“Crucially for energy suppliers, smart home assistants are increasingly acting as a springboard to other smart purchases from heating and lighting to smart appliances.”
The survey reveals that, with the exception of smart meters, 40% of connected home device owners expect to upgrade their devices within two years.
For private renters, this jumps by 50% to three in five people, especially in relation to home appliances, lighting, plugs and assistants which can easily be taken with them should they move home.