PORT WASHINGTON, NY, September 20, 2021 / PRNewswire-PRWeb / – According to the latest report on the ownership and use of home automation from NPD Connected intelligence, 41% of consumers who have purchased security cameras, security systems or smart doorbells at retail choose to pay for a subscription service to access premium features. According to NPD’s Future of Tech report, with unit sales of these products expected to increase by nearly 20% through 2023, this creates an opportunity for smart home manufacturers to appeal to consumers for additional revenue.
The latest data from NPD reveals that consumers who purchase these subscription service plans after purchasing their devices at retail are often people under the age of 35, who have family incomes above. $ 100,000, are more likely to have young children and are also more likely than non-subscribers to live in multiple-unit buildings or townhouses. Additionally, subscribers are investing more in smart home technology, with 41% owning five or more different types of smart home devices, while only 25% of non-subscribers do.
“Smart home subscription services have long been seen as a path to profitability for smart home manufacturers, but creating attractive offerings for consumers – both from a feature and financial perspective – will be the key to creating a loyal base, “said Jill aldort, Director, Industry Analyst for The NPD Group.
Among consumers who subscribe to these services, 29% indicated that 24/7 continuous video recording (CVR) is the most compelling reason for paying the additional fees. This is almost double the 16% of respondents who cite access to an extensive history of video clips as the main reason.
“Features like CVR have become a competitive differentiator for brands, as have plans that provide coverage for multiple devices, rather than paying a fee for each device,” noted Aldort. “Monetization beyond hardware sales is important to manufacturers, especially as smaller brands gain traction in the marketplace and pressure big brands to rethink their product and pricing strategies. “
The NPD Group Connected Home Automation Ownership and Use Survey is based on a consumer panel study that reaches over 5,000 US consumers, ages 18 and older, from various regions and demographics. The survey was conducted between March 17 – March 31, 2021.
NPD’s Future of Tech report is based on technology product sales forecast captured in NPD Group Retail Tracking Service point-of-sale data.
About connected intelligence
Connected intelligence provides competitive intelligence and insight into the rapidly changing connected consumer environment. The service focuses on the three essential components of the connected market: the device, the broadband access that provides connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted and consumed by the customer, as well as an examination of how the market has changed over time and what different vendors can do to position themselves as well as possible in this area. changing market. For more information: http://www.connected-intelligence.com.
About the NPD Group, Inc.
NPD offers data, industry expertise and prescriptive analytics to help our clients grow their businesses in a changing world. Over 2,000 businesses around the world trust us to help them measure, forecast and improve performance across all channels, including physical commerce, e-commerce and B2B. We have services in 19 countries around the world, with operations covering the Americas, Europe, and APAC. Areas of practice include Apparel, Home Appliances, Automotive, Beauty, Books, B2B Technology, Consumer Technology, E-commerce, Fashion Accessories, Food Consumption, Catering, Footwear, home, home improvement, children’s products, multimedia entertainment, mobile, office supplies, retail, sports, toys and video games. For more information visit npd.com. Follow us on Twitter: @npdgroup.
Megan Scott, The NPD Group, 516.625.7516, [email protected]
SOURCE The NPD Group