Connected home: Consumer adoption challenges

A smart home that turns off lights when you leave a room, orders more bananas when you run out, and automatically switches on your air conditioning in your living room on a hot day as you’re headed home seemed like a fantasy just a few years ago.

Thanks to the rise of smart home appliances, assistant technology, and the increasing interconnectivity of devices, this home can now be a reality for many people. Despite the promise, it’s not as mainstream as expected. And with everyone spending a lot more time in the house these days, the importance of technology making your life more convenient has become more urgent than ever.

To uncover what some of the barriers and pain points are for consumers, Google partnered with Accenture to dig into what would help people adopt and use smart home technology.

In this first installment of a three-part series, we looked at the current state of home devices. We found that a lack of awareness and advocacy and a fragmented experience across buying and using devices are major barriers to people creating their own truly connected homes.

The current situation: Connected homes aren’t very connected

The connected home market in APAC reached US$21 billion in 2019 and is predicted to double to US$43 billion by 2023,¹ presenting an opportunity for brands to tap into this growing trend of people wanting to augment their lives with smart home devices.

In APAC, most homes currently either have a single smart device installed or use separate systems, with multiple devices that don’t usually interact with one another.

Single devices are often placed in one room (such as a living room or bedroom), and functionality is usually restricted to the features of that device. Although separate systems can be somewhat integrated, control and connectivity is fragmented, meaning the experience isn’t very smooth.

Typically, India, Indonesia and Thailand have a single smart device installed while Japan, Australia and South Korea have separate systems with multiple devices, resulting in fragmented control and a less seamless experience.

Entertainment is the biggest use case, with smart TVs being somewhat popular with an average of 36% usage across APAC markets. But most smart technology is barely used, with the next category of “control and connectivity” smart devices such as smart speakers, smart plugs, control buttons, and panels with an average usage of 1% to 21%.

Penetration of connected homes in selected APAC countries*

Bar charts illustrating the adoption of different smart home devices (home entertainment, smart appliances, control & connectivity, security, comfort lighting, and energy management) in India, Indonesia, Thailand, Japan, Australia and South Korea.

Think with Google

Source: Google/Accenture, APAC, “The Rise of the Connected Home in Asia Pacific” report, July 2020.

Smart technology has the potential to save us considerable time and energy, but separated devices don’t have that magical time-saving spark that happens when all these devices and services are integrated and work together automatically.

While the technology exists, consumers are either not purchasing these devices due to a lack of understanding or not using them to their full extent. In many homes, devices are largely disconnected from one another, meaning the experience is not as seamless, and their smart capabilities are not being fully used.

So, imagine a home that helps you get to sleep easier on a cold winter night.

At 8:00 p.m., the house automatically warms to 24 degrees, the lights dim, and the nighttime security function is activated. Soon, the blinds will lower, the external lights will dim, and calming sounds will play on the bedroom speaker as you make your way to bed. But first, because you’re watching a movie downstairs, the TV asks if you want to delay bedtime by 27 minutes, until the end of the movie. You say yes, and your movie resumes while all timers and settings adjust in the background.

This home would be possible today if systems were integrated. All the individual capabilities exist, we just need to bridge the divide between separate systems into a fully connected one where all devices work in unison.

So, how can we build toward this connected home?

The opportunity: Five consumer pain points and how industry players can help

Many smart technology adopters are finding that the road to connectivity is paved with frustration, and having a few internet-ready devices does not mean you’re living in an automated utopia.

While many people are ready to embrace new connected homes, there are opportunities for the industry to accelerate consumer adoption by lowering these five unintended smart home challenges.

People are unsure of which devices to adopt and how to use them: Owning a connected device doesn’t mean you know how to use it, and not everyone has the time or patience to learn. Even more, tech-savvy people don’t know about all the new features and updates that could save them time.