1、2022 Report:Sustained Growth Beyond the Pandemic November 2022The State of the Connected Home21.Overview 04 2.The Connected Home Market in 2022 05 3.Regulatory Landscape 17 4.Policy Recommendations 18 5.Conclusions 20 ContentsContents31.OverviewOverview4This is the sixth edition of our annual State

2、of the Connected Home report,which surveys a nationally representative sample of 1,000 adults across the UK to ask about their awareness,interest,and ownership of a range of connected or smart home products.The results of the survey are interpreted alongside GfK Market Intelligence point-of-sale dat

3、a derived directly from consumer-facing retailers in order to provide an overview of the current state of the market.This years report contains sales data from April 2021 to March 2022 and consumer attitudes drawn from fieldwork conducted in April 2022.We thank GfK for their ongoing collaboration on

4、 this project.Whereas our 2021 edition highlighted how the Covid-19 pandemic instigated a rapid increase in adoption of connected home devices,this years report finds the market to be stabilising yet nevertheless still growing in value.While the rapid growth levels of the preceding year are understo

5、od to have been driven by the unique circumstances of the pandemic and subsequent lockdowns,continued strong sales figures and steady increases in levels of consumer awareness around connected homes suggest that the market can continue to generate new demand beyond the pandemic.What particularly sta

6、nds out to us this year is the product diversification of the market whereas some established connected home categories are showing signs of maturity,we are seeing higher levels of growth in new product areas.As awareness around connected homes increases,consumers have greater interest and confidenc

7、e in purchasing devices beyond the entertainment domain that serve a much wider range of functions such as home security and energy management.This report is a flagship project of techUKs Connected Home Group,the community of techUK members interested in accelerating the adoption of connected home t

8、echnologies.In addition to raising awareness around the multiple benefits and use cases of connected home tech,the Group also engages with policymakers to develop a regulatory environment that increases consumer trust and supports national policy objectives while providing space for innovation and d

9、ifferentiation.2.The Connected Home Market in 20222.The Connected Home Market in 20225Our report covers five major product categories for connected home technologies:smart domestic appliances,entertainment devices,energy and lighting systems,health monitors,and home security apparatus.Smart Domestic

10、 Appliances Smart kettle/smart coffee maker Smart refrigerator Smart washing machine Smart oven/hobs Smart Entertainment Smart speakers(e.g.Google Home/Amazon Echo)Smart TV Smart Energy&Lighting Smart thermostat Smart plugs Energy management service/app Smart lighting(smart lamps)Smart Health Monito

11、rs Smart monitor for specific health conditions Smart fitness&activity tracker Smart connected scales Smart connected toothbrushSmart Security&Control Smart/connected alarm system Motion camera sensors for external doors/windows Internal cameras for baby,pets or security Smart access control(digital

12、 keys)Smart doorbell Smart detectors(for smoke and gas leak)Survey coverage:product list for 2022Technology and the Future of the High Street62.1 Consumer awareness of connected home technologyConnected home or smart home technology is now an established market in the United Kingdom over the past fe

13、w years we have seen consistently that around 4 out of 5 people state that they have some level of knowledge around smart homes.In 2022 the exact figure sits at 81%,which is one percent higher than 2021 and a further percentage point higher than 2020.We have come a long way from 2016 when only 66%of

14、 adults in the UK had any knowledge of smart homes.Another positive sign for the market is the percentage of people claiming to have high or very high levels of knowledge around connected home technology,as these are the people who are most likely to drive adoption of new product categories and func

15、tions.This figure now stands at 37%which,again,is slightly higher than previous years.2.The Connected Home Market in 2022More than a third of consumers feel they know a lot/a fair amount about the smart home technology-consistent from 2019 onwardsRelatedly,across all connected product categories we

16、see an increase in the percentage of users who report that they have connected their devices to their home WiFi.This reflects increasing consumer understanding of what connected technologies do and how to use them we are seeing fewer people who own connectable devices but havent connected them,parti

17、cularly for health-related wearables and security devices.I know a lot about Smart HomeI know a fair amount about Smart HomeI know a little about Smart HomeI dont know much about Smart HomeI have never heard of Smart Home200022This year has seen a further increase in smart prod

18、ucts being connected to WiFi,most notably for health/wearables and security.23%31%26%11%8%24%43%10%20%3%23%7%43%22%4%12%24%43%19%2%9%27%43%19%2%2%44%26%10%18%8%29%44%18%1%Do not use at allHave not connected to your home WiFi but still useConnected to your home WiFi02

19、0212210%10%7%6%90%88%92%92%69%69%76%24%21%16%16%34%36%27%21%57%52%63%69%54%51%51%56%38%36%35%32%41%45%45%39%46%44%49%47%76%72.The Connected Home Market in 202282.2 Adoption levelsOverall,77%of adults in the UK own at least one connected home device this figure was only 67%prior to the pandemic,and h

20、as grown by one percentage point since 2021 this aligns with our consumer awareness data.We are also seeing a growing proportion of the population who can be described as advanced adopters of connected home technology(owning more than 3 connected home devices).This figure now sits at 26%of all respo

21、ndents,compared to 24%in 2021 and just 17%in 2020.Interestingly,the data suggests that connected home technologies are being adopted by all age demographics.While adoption and advanced adoption levels are highest among 25-45s,the survey finds that levels of ownership for over 65s are largely aligned

22、 with national averages.Our data suggests that a sizeable segment of over-65s are quite likely to invest in connected home technology,which may be driven by some relative affluence and higher rates of home ownership among this demographic.3 in 4 consumers own at least one smart home product;highest

23、among 25-45s9Case Study:Amazons partnership with Royal National Institute of Blind People(RNIB)Amazon started working with Royal National Institute of Blind People (RNIB)in 2018 when a member of Amazons devices team met a customer with sight loss who told them how Alexa helps them live a more indepe

24、ndent life.This conversation led to a meeting between Amazon and RNIB,and Amazon has since launched a number of features to help the blind and partially sighted community.Features include:1.the ability for Alexa users to access information from RNIB using their voice-like how to register as sight im

25、paired,practical tips and information on how to protect eyesight,and advice about supporting someone who is blind or partially sighted 2.the ability to call the RNIB Helpline with a voice command via Alexa 3.access to thousands of audio books for free by saying,“Alexa,open RNIB Talking Books,”4.Alex

26、a users can access the RNIB Letter to Santa service using their voice,an initiative which was launched for Christmas 2021.Amazon also sponsored the RNIB See Differently Awards in 2022 and supported the RNIBs World Upside Down campaign which involved a takeover of Londons Piccadilly Circus screens.Am

27、azon displayed an upside down image of an Echo device to give an insight into the difficulties of social distancing for blind and partially sighted people.Case Study:Amazons partnership with the Royal National Institute of Blind People(RNIB)2.The Connected Home Market in 2022102.3 Size of the market

28、The size of the market can be described in terms of volume(number of devices sold)or value(total price of all devices sold).Market size and value estimates below are taken from GfKs retail panels which track sales of connected home devices via key consumer channels.Some sales that take place through

29、 other retail channels(particularly B2C or trade channels)are not captured,therefore these figures represent a minimum estimate.From April 2021 to March 2022 there were almost 20 million connected devices sold in the UK this figure has declined from the 21.7 million that were sold in the previous 12

30、 months where there was particular uptake in adoption due to the pandemic.While the market is down 8%in terms of volume in the last year,it is up by around 15%on the year before and comfortably outperforms any year prior to the pandemic.Unit sales have dipped post-Covid,but value is still in growth

31、and the long-term trend remains positiveApr 16-Mar 17Apr 17-Mar 18Apr 18-Mar 19Apr 21-Mar 22Apr 20-Mar 21Apr 19-Mar 20Apr 16-Mar 17Apr 17-Mar 18Apr 18-Mar 19Apr 19-Mar 20Apr 20-Mar 21Apr 21-Mar 22Exc.TV(+),wearables&printersTotalExc.TV(+),wearables&printersTotalTotal volume down 8%year on year,but u

32、p 11%on the year to Mar-20.Narrower definition down 4%vs.Mar-21,and up 12%on Mar-20.Total value up 1%year-on-year and up 30%on the year to Mar-20.Narrower definition grew 10%vs.Mar-21,and up 31%on Mar-20.3,56512,0265,88214,70916,4716,9917,80517,9139,1298,72121,79719,9522,8935748461,0071,0321,2261,35

33、03,3783,7033,6884,7344,783Sales volume(000s)Sales value(mn)2.The Connected Home Market in 202211In terms of value,the UK market was worth approximately 4.78 billion in 2021-2 this is an increase on the previous year despite fewer devices being sold.Approximately 45%of consumers report that they woul

34、d be willing to pay at least a little bit more for a smart product over an equivalent non-smart product,and this growing consumer awareness of the benefits of smart home technology supports a greater willingness to pay for higher-end devices.A variety of factors are also contributing to the rising a

35、verage value per unit across the smart home market:1.There is real inflationary pressure on the supply side with resource constraints and rising shipping costs.2.Robust sales of smart TVs are a key contributor to both volume and value.Supported by the increasing prevalence of voice recognition in ne

36、w model ranges,smart TVs account for more than a fifth of market volume(4.4 million units)and nearly half of value(2.3 billion).3.Further emergence of smart Major Domestic Appliances(e.g.washing machines,dishwashers,fridge-freezers),which are big ticket items that add a lot of value to the market.Th

37、ese products have been growing over time and often attract high prices the average price of a smart fridge freezer,for example,is well over 1,000(3x the average for a fridge freezer);for washing machines,there is a premium of about 25%for a smart device over a non-smart one.2.The Connected Home Mark

38、et in 2022122.4 Product diversificationThis years findings suggest that we are approaching a third wave of connected technology adoption that encompasses a much greater diversity of devices and functionality than we have seen in the past.The first wave was driven primarily by smart TVs,which are now

39、 present in a majority of homes,and then the second wave by a rapid increase in ownership of smart speakers and wearables.While these three product categories still account for the greatest proportion of sales in the market,the rate of growth has slowed as they approach a more mature phase of market

40、 penetration.Market segments that were previously quite niche are now becoming more mainstream.Our data shows healthy levels of growth across multiple categories,including kitchen appliances(discussed above),personal care,home safety,security and energy management.In contrast to kitchen appliances,s

41、ecurity and home/energy management devices,while growing in volume,tend to be lower value.Compared to before the pandemic,we now see considerably higher rates of ownership across:Smart appliances(washing machines,refrigerators)reaching 11%ownership in 2022,up from 8%in 2020Smart security devices(cam

42、eras,alarm systems,smart doorbells)at 29%ownership,rising from 19%in 2020Smart devices that support more efficient energy usage(thermostats,plugs,lighting)27%ownership,from 20%in 20202.The Connected Home Market in 202213Ownership of smart speakers has increased fivefold in the last five years,but gr

43、owth has slowed in the last year and smart TVs continue to be a strong household productSlow growth in uptake across a number of other categories,including kitchen appliancesSmart TVSmart SpeakersSmart Fitness&Activity trackerSmart ThermostatSmart PlugsSmart Lighting(smart lamps)Smart DoorbellSmart

44、DetectorsMotion camera sensors for external doors/windowsInternal cameras for baby,pets or security39%47%46%49%58%61%7%14%22%29%38%40%18%24%19%22%24%25%8%10%10%14%10%14%9%8%8%9%11%13%6%7%9%9%12%12%2%5%5%8%11%15%16%20%9%10%11%7%7%10%6%7%8%9%8%6%7%7%7%200202020212022En

45、ergy management service/appSmart Washing MachineSmart/connected alarm systemSmart monitor for specific health conditionsSmart connected scalesSmart connected toothbrushSmart RefrigeratorSmart Kettle/Smart Coffee MakerSmart Oven/HobsSmart access control(digital keys)2%3%2%7%7%7%1%1%2%5%6%7%4%4%2%5%6%

46、7%2%4%7%6%5%6%2%4%5%6%2%3%2%4%5%5%1%1%1%2%4%4%1%2%0%3%5%3%1%0%0%2%3%2%1%0%1%2%2%2%0%0%14Case Study:Hive Heating app that helps consumers save on their energy billsHive Heating Plus is a monthly subscription that works with Hive Thermo-stat and is designed to help customers save money on their heatin

47、g bills,whilst making their home more efficient and lowering their carbon footprint.The app monitors a customers past usage to calculate how much they are likely to spend on heating and allows the customer to set up a monthly budget.The app helps them stick to this budget by sending personalised tip

48、s and weekly push notifications to alert customers if they are on track,under,or risk going over budget.With Heating Plus customers are also able to access all their historical heating data,including their total usage of the day,the week,and the year.They are also able to work out their carbon savin

49、gs using the Carbon Calculator,as well as the carbon savings of the entire Heating Plus community.There is also a Heating Efficiency Monitor which tracks how your home heats and cools and can alert the customer if it detects there is a problem with heating efficiency.It will then notify the customer

50、 and guide them through simple steps to fix any issues detected.Schedule Assist is an innovative new feature which has been designed to better understand a customers home and calculate how much a users schedule will cost them over the year.The feature also simulates what changes a customer can make

51、to their schedule and the savings this will generate.This is completely personalised to a customers home,and the feature will only include tips that will save the customer money.With Schedule Assist,users have been saving an average of 26 a month on their energy bills during the winter.Hive Heating

52、Plus works with any Hive Thermostat and is available within the Hive App.Case Study:Hive Heating app that helps consumers save on their energy bills2.The Connected Home Market in 2022152.5 Adoption drivers and barriers to adoptionWhen asked to identify device characteristics that are important to th

53、em,consumers responded similarly to previous years and prioritised ease of use,interoperability,and convenience.This year we added an additional option around the potential for connected home devices to help make households more energy efficient this attribute scored well among respondents as the th

54、ird most important criteria.This is no surprise given both the rising cost of energy and increased focus on environmental sustainability and the Net Zero journey after COP26.The need for interoperability is increasingly recognised by consumersHow well does each statement apply to the category?In ter

55、ms of how connectivity capabilities impact consumer choice,the survey data confirms that,as with previous years,smartphones are far and away the most popular way for people to control other smart devices within their homes.Around three quarters of consumers consider smartphone connectivity to be eit

56、her essential or quite important when considering purchasing a new connected home device.Its really important that it works with other devices in the homeI am confident I will be able to use itIt would make my life easierIt can help make my household more energy efficientIt will be fun to ownIt can

57、save me money in the long-runIt has a significant benefit over traditional alternativesI trust the brands that promote itI read and hear a lot of good things about itIve seen advertising that really stimulates me to buy itDrivers for smart home tech2.The Connected Home Market in 202216Interestingly,

58、despite the high adoption of smart speakers in the UK and their ability to connect to other smart devices,smart speakers are rarely being used as hubs to control smart homes and the vast majority of connected home products are not being connected to or used in tandem with smart speakers.Smart speake

59、rs are mostly utilized for entertainment,news,and information.In terms of barriers to adoption,consumers were most likely to identify price,privacy and security concerns as factors that made them less inclined to purchase connected home devices.A self-professed lack of understanding about some types

60、 of technology was also significant,particularly in the segments of smart security&energy-related products.Barriers to Smart Home products:20223.Regulatory Landscape3.Regulatory Landscape17We believe that robust regulatory frameworks that are aligned with international standards and emerging best pr

61、actices can play a positive role in moving the industry forward and developing consumer trust.Over the past twelve months we have seen some significant legislative and regulatory developments that are important to the development of the connected home market:Product-level cybersecurity.The UK Govern

62、ment has played a leading role in strengthening the resilience of Internet of Things(IoT)devices and networks through a series of interventions promoting the Secure-by-Design agenda.This began in 2017 with the development of the Voluntary Code of Practice for Consumer IoT Devices and culminating in

63、the Product Security and Telecommunications Infrastructure Bill.The Product Security and Telecommunications Infrastructure Bill draws upon the widely-recognised international standard EN 303 645,thus meeting industry calls for international alignment while ensuring that products available on the UK

64、market provide strong levels of protection to consumers against cyber threats.UK Product Safety Review.The government issued its Call for Evidence Response relating to the UK Product Safety Review in November 2021.The government recognised the need for greater clarity around connected consumer devic

65、es,including product liability,and the need to align product safety rules with new cybersecurity requirements(see above).Overall the commitment to a pro-innovation,outcomes-focused and risk-based approach is encouraging and we look forward to continue working with the government in developing this f

66、ramework.Reforms to UK data protection laws.In July 2022,the Government published the Data Protection and Digital Information Bill,outlining reforms to the UKs data protection regime which builds on the key elements of the existing UK General Data Protection Regulation(UK GDPR).We welcome the Bill,w

67、hich maintains the core principles of the GDPR such as transparency,fairness,purpose limitation,data minimisation,data accuracy and accountability which ensures that all personal data is collected,processed and shared in ways that uphold consumers privacy and data rights.The Bill also strikes a sens

68、ible balance between reform and maintaining good data flows with key international partners,such as EU,which is vital given that many connected home companies manufacture for European or global markets to diverge significantly from the EUs data protection model would add additional costs to consumer

69、s in the UK.4.Policy Recommendations4.Policy Recommendations18Additional ways through which the government can support the connected homes market and realise the benefits that they offer to consumers include:Collaborate with industry on industry-led accreditation and certification schemes.A great ex

70、ample is the DCMS Grant Programme for Consumer IoT Assurance Schemes which supported the development of SafeShark,a collaboration between DTG and Connect Devices to create a BSI-backed assurance scheme that provides independent certification against the criteria set out within the upcoming Product S

71、ecurity and Telecommunications Infrastructure Bill.Adopt interoperability and connectivity standards.Adoption of international standards and best practices as a precondition of market access not only supports policy priorities within the identified areas,but also supports the development of the indu

72、stry by preventing bad actors from coming onto the market and establishing baseline levels of standards that connected tech products adhere to.Government should work alongside industry,via standards development committees,to identify and adopt relevant standards relating to device interoperability-s

73、everal techUK members have been involved in developing the Matter connectivity protocol to ensure that smart home devices made by different manufacturers can work across different ecosystems and interact seamlessly with one another.There is also a need for common standards across connectivity networ

74、ks so that devices can connect to one another or to the cloud via standardised wireless networks and can seamlessly transition between private networks in the home and public networks outside.4.Policy recommendations19Harmonise regulation to meet environmental aims.The UK should seek to harmonise re

75、gulation on eco-design and the repair/reuse of connected home tech to lower the cost to consumers.If the UK diverges from international rules,manufacturers will need to design and store different products for the UK market.This represents an unnecessary cost which makes devices cost more,therefore b

76、lunting the energy savings opportunity.Increasing consumer awareness of how to use connected home technology for energy efficiency benefits is also key here-consumers should be encouraged to actively use the smart features of connected devices and benefit from future interlinkages with their energy

77、provider.Mandate connected home tech in new-builds and social housing.Given the proven energy and cost savings presented by adopting smart appliances,smart thermostats and connected home tech should be in every social home,government building,and new-build property.Property developers have resisted

78、this,but given that digital tech saves money and energy for end users(particularly relevant for public sector estates and social-rent tenants),this should be mandatory within buildings.5.Conclusions5.Conclusions20The Connected Home market in the UK has now reached the point where most people have so

79、me level of familiarity with connected home devices and have at least one in their home.Around one quarter of the population are advanced adopters that have more than three types of connected home device in their homes,and we are starting to see increasing interest and adoption in a wider range of p

80、roduct categories.In addition to the well-established entertainment domain,smart and connected technologies are delivering significant benefits to consumers by helping them to improve their energy efficiency,live healthier lifestyles,and protect their homes.While year-on-year comparisons are skewed

81、by the particularities of the pandemic,overall market trends are positive across all product categories.Nonetheless,our survey has highlighted the persistence of a range of barriers that can prohibit adoption.Whereas price is largely a commercial consideration and differentiator between brands,we be

82、lieve that both industry and policymakers can do more to address consumer concerns around privacy,cyber security and interoperability.5.Conclusions21It will also be important to address persistent gaps in consumer understanding of how to use connected home devices-these gaps can be addressed through

83、 a range of measures including accessible marketing and education campaigns that emphasize the tangible consumer benefits of smart and connected home devices,as well as integration of connected home devices into new buildings.In particular it is important to support consumers in using connected home

84、 devices to improve their energy efficiency,which is going to be an important factor in addressing the cost of living crisis and meeting our Net Zero commitments.22techUK is a membership organisation that brings together people,companies and organisations to realise the positive outcomes of what dig

85、ital technology can achieve.We collaborate across business,Government and stakeholders to fulfil the potential of technology to deliver a stronger society and more sustainable future.By providing expertise and insight,we support our members,partners and stakeholders as they prepare the UK for what c

86、omes next in a constantly changing techUKAbout GfKIn a world of data overflow,disruption and misuse,picking up the right“signal from the noise”is key to success.GfK is the unparalleled,always-on,AI-powered intelligence platform and consulting service for the consumer products industry,globally and w

87、e are revolutionizing real-time access to critical knowledge.Together with our attention to detail and advanced AI,we provide world-class,independent analytics that deliver not just descriptive data but also actionable recommendations helping to boost sales,as well as organizational and marketing |GfK