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Are consumers too connected?

Amazon is acquiring Roomba vacuum maker iRobot, adding yet another connected device to its offerings.

As smart devices power more in consumers’ lives, let’s explore the connected home:

  • We predict there will be nearly 111 million US smart home device users in 2022, up 6.2% from last year. Of those, 43.8 million will use smart appliances (including kitchen and laundry), up 16.7% year over year.
  • We predict smart home security users will increase 10.1% this year to reach 62.0 million users. Safety is a large driver of smart home technology adoption, per Deloitte. Nearly 3 in 10 (29%) consumers have outdoor security cameras, and 28% have doorbells with built in cameras. Over two-thirds say owning smart home technology makes them feel safer.
  • Deloitte also found 60% of US consumers use their smartphones to control smart home devices, including locking and unlocking homes, adjusting the thermostat, and controlling smart lights and speakers. That access can be confusing. Nearly a quarter are overwhelmed by the devices and subscriptions, down from 32% last year. Over a quarter of smart home technology users say they add too much complexity.

Why we care: Consumers aren’t all in on the idea of the smart home just yet. But if the price is right, adoption might grow.

Pricing will play a big part in the category’s growth, per Jill Aldort, director, industry analyst at The NPD Group. “Home automation ownership rates in households with an income of $150,000-plus are more than double those of under $45,000 income. As the landscape grows… there could be opportunity for growth across a variety of categories at new price points.”

This was originally featured in in the Retail By the Numbers newsletter. For more retail insights, statistics, and trends, subscribe here.