Consumers gravitate toward telephone companies for connected smart home services

Consumers gravitate toward telephone companies for connected smart home services Consumers gravitate toward telephone companies for connected smart home services

London, UKWhen it comes to purchasing smart home systems, consumers in major global economies prefer to buy from their familiar telephony providers, according to a new survey conducted by IMS Research, now part of IHS.

Respondents were asked to pick the entities from which they would prefer to buy smart home services. Participants were allowed to choose more than one provider. Telephone companies received the largest number of picks from the respondents, with a total of 793 selections. This exceeded the number of selections for other choices, including electrical utilities, home security vendors or broadband Internet providers. This finding serves as an early indicator of consumer preferences as different businesses battle for a piece of the emerging smart home business.

“The battle for the smart home service market is taking shape with various types of companies – ranging from security providers like ADT, to telephone providers like Verizon – providing remote home management systems,” said Elizabeth Mead, connectivity analyst at IHS. “As the market evolves, and as more companies enter the competitive landscape, it will become increasingly important to understand the underlying motivation behind consumer preferences.”


In January IHS commissioned a web survey focused on understanding consumer desirability, expectations and demand for smart home systems and devices. The survey analysed the attitudes and expectations of 2,500 respondents, with 500 from each of the following countries: the United States, Brazil, the United Kingdom, Germany and China. Questions in the survey covered multiple aspects of consumers’ attitudes regarding smart home services, which enable consumers to remotely manage their home appliances, lights, heating, and other devices.

When asked why they picked the telephone companies, the largest portion of respondents cited familiarity as their main reason. Almost half of respondents, at 46% said they selected telephony providers primarily because they are most familiar with them. In contrast, security providers and specialist home automation manufacturers were primarily selected because respondents considered them to be the most trustworthy.


“Consumers are making different selections based on distinct criteria, depending on which type of company they prefer,” Mead said. “Understanding these and other consumer preferences will make the difference between success and failure in the smart home market.”

This report, entitled ‘Smart Home Consumer Survey – US, Brazil, UK, Germany and China” covers 2,500 responses to 76 question on smart home topics. It includes over 90 data tables and figures, with additional qualitative insight and analysis to provide an overview of the smart home market from a strategic viewpoint, highlighting key trends in consumer data.




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