Who Is the New Smart Home User?

Consumers who are new to the smart home market are far closer to the mainstream consumer than to the early smart home adopter, who is often a product champion. For example, 30% of “Newbies” (those who own 1-2 smart home devices) have a security system, the exact same adoption level for all US internet households. By comparison, 71% of “Super Power Users” own a security system.

The industry needs to focus on the benefits and messaging that will inspire these middle-market buyers to acquire their next 3-5 smart home devices. They are underserved in security services, which is a universally appealing value proposition, but messages must be more inclusive, focusing on the practical benefits and ease of integration into everyday life to appeal to this wider audience.

First-Time Buyers: Appealing Benefits and Routines

Like other buyer segments, new users are most likely to start with a video device. Among all smart home device categories, video doorbells are the highest adopted, with 22% of all US internet households owning at least one by year-end 2023. Smart cameras are the second-best adopted category at 20% adoption.

Furthermore, most recent purchases were made by buyers new to the category. Consumers’ purchase intentions indicate video devices will continue to lead the way, starting at the front door. Video devices present an easily understandable value proposition, with their safety and security benefits widely appreciated.

For purchases made in the 2023, 67% of smart door locks, 69% of smart video doorbells, and 55% of smart cameras were bought by first-time owners.

Testing of unique benefits of smart home products and integrations, video also leads, with access control and safety use cases. Parks Associates tested 97 unique smart home routines, finding the most appealing smart home routines include comfort, productivity, and safety/security use cases, with scenarios such as automated locks, lights, and temperature adjustments outpacing entertainment-focused routines. This is especially true among Newbies, who foremost value safety and security scenarios for themselves, their family members, and their home.

Products enabling these benefits are available at a wide range of prices, with several different form factors for different locations and use cases around the home: doorbell, camera, and floodlight. This combination of variety and familiarity offers a comfortable and affordable starting point for all consumers, regardless of socioeconomic status, to start and then expand their smart home.

Parks Associates is a market research and consulting company with a special focus on tracking the smart home industry. This is an excerpt from Parks Associates white paper Middle Market: Lowering Barriers to the Smart Home.