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Argus Insights

A 'smart home' snapshot

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Wednesday, May 25, 2016

The Smart Home 360 report, which comes out today from the market research company Argus Insights, provides a snapshot of what is out there in the smart home market today. The study looks at changes in the market from March to April, as well as overall trends Argus researchers are seeing within the quickly emerging and maturing market.

I caught up with Argus Insights CEO John Feland, who pointed that because the smart home market is changing so fast, “we are continuously pulling data around the marketplace from consumers on what is working and what is not.”

Overall, Feland said that Argus is seeing “year-over-year growth" within the smart home market, and equally important, the data is showing that security is still vitally important with consumers when it comes to taking that first plunge into smart home offerings.

“Home security is top of mind,” said Feland. “For those who are in the ‘do it for me’ category, the gateway use-case is security, so that is still what is selling and driving [smart home] adoption.”

And there is even more good news for traditional security dealers: For the ‘do it for me’ group, which is professional-installer based, the data is showing that when consumers try to do it themselves “they have been frustrated,” said Feland. When they work with a local dealer/installer, the “outcomes have been much better,” he noted.

From an installer’s standpoint, Feland said the key to getting someone to start on that smart home journey is simplifying the initial process for customers while providing a system that can seamlessly integrate smart home connectivity and capabilities without any headaches for the end user.

In the area of home automation, “If they [dealers] are not talking to their customers about Amazon Echo, they are not doing their job,” said Feland. “Amazon Echo is still a leader, and Alexa is still the voice in people’s homes, but we will see what happens when Google launches its product.”

In the DIY space, Feland noted that dealers should pay close attention to consumers’ frustration with the lack of support they are getting on the retail side. “If you look at where they [retailers] are failing right now, that presents an opportunity for traditional dealers to be that second date that leads to marriage.”

The report, which Argus released a sample section of today, is also available for purchase.
 

 

Smart homes—all is not golden?

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Wednesday, March 23, 2016

While the “smart home” may be a vision of the future—with the rise in interest and demand for these technologies and services continuing unabated—all is not golden in this quickly emerging world of interconnectedness. Potential concerns include cost, ease of set-up and self-service, and support services.
 
Following data released in December by Argus Insights that shows growth in consumer demand for connected home devices slowing in 2015, findings from a recent survey reveal the specific challenges consumers are facing.

SSN reported on a June 2015 study from Argus, “Connected Home or Ho-Hum?” that showed a similar downward trend for smart home services, although many in the industry disputed the report, and many leading smart home companies are showing increases for 2015 in the adoption rate for their smart home interactive services.

As the industry continues to show interest in, and adopt the myriad new smart home services now available—controlling everything from your lights and heat to tracking your sleep patterns and even when your toast is done—there still may be some growing pains for this quickly emerging market.

To gain a better understanding of these challenges and explore possible solutions, Support.com, a provider of cloud-based software and services, surveyed more than 3,000 U.S. consumers in an effort to look at drivers and barriers of smart home usage and consumer behavior for both smart homeowners and potential buyers.

While nearly a quarter of respondents (23 percent) indicated that they have a smart home system installed in their home, the survey found key areas (cost, ease of set-up and self service, and support services) that may be causing some challenges or obstacles for existing and potential new consumers.

Despite the enhanced value to a home, the survey found that the perceived cost of smart home systems is a deterrent for many consumers, with 42 percent saying that price was their greatest frustration when purchasing, installing and maintaining their smart home systems.

The complexity of installing and configuring smart home systems is also frustrating users and causing hesitation in potential buyers. The survey found that 31 percent of smart home owners struggle with the complexity of setup, configuration and ongoing support for their devices, while 18 percent of smart home owners said their biggest frustration is when all of the devices don’t properly communicate and work together, and 43 percent of potential smart home buyers are concerned about the complexity of installing and configuring smart home devices and systems.

According to the survey, of current smart home owners, 61 percent want to fix issues on their own and become frustrated if they can’t, and 57 percent installed, connected and set-up all the devices and services themselves to save money on installation. Of potential buyers, 39 percent would rather install, connect and set-up all the devices and services on their own and save the money, and 22 percent would not buy a smart home system because they perceive it would be too complicated to install and set up on their own.

So while these findings are showing some hesitation as consumers try to make sense of the potential this new world of interconnectedness has, they also point to the need for security dealers and installers to connect more with their customers—and potential new customers—to bridge that gap between their interest in these new smart home technologies and their fear of taking the leap into this cool new world of interactive services.

By addressing these concerns up front, and adding some more transparency to the overall process, companies and installers may find that this initial resistance to smart home technology and services gives way to understanding and wider acceptance and adoption.

 

Good news for dealers: Consumers still disappointed with DIY cameras

Satisfaction with other smart home devices slowly rising, Argus Insights says
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09/30/2015

LOS GATOS, Calif.—Consumers’ disappointment with DIY home security cameras could become a “renaissance” for traditional dealers, according to John Feland, CEO of Argus Insights. Customers need some help, he said, and dealers are positioned to do just that.

Consumers ‘ho-hum’ about home automation?

Study says demand is down, products must become easier to use
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06/22/2015

LOS GATOS, Calif.—Advances in connected home technology were all the buzz at ISC West 2015, and recent studies point to a boom, too, but an alternative report from Argus Insights suggests that the big buzz is overrated. The market is stalling and may even be shrinking, it says.