According to Deloitte’s Mobile Consumer Survey, for the second year running the connected smart entertainment device market has been the primary driver of growth in the consumer IoT market.
Deloitte says just under 30 percent of Australians own smart TVs or gaming consoles, but there has been zero growth in the connected home device market with ownership remaining at just under three percent and with only four percent of consumers surveyed saying they intend to make a connected home device purchase in the next year.
Deloitte says all the devices required to achieve the vision of the connected smart home exist and are on sale now, and in some cases have been for years. “Yet we are still not seeing the surge in demand for connected devices that we may have expected.”
“We haven’t seen much, if any uptake this past year,” Deloitte says. “The smart connected security system market has risen to four percent with a further eight percent of consumers noting they do intend on making a purchase in the next year. Smart appliances remain at three percent; smart thermostats and lights declining to one percent.”
Deloitte attributes the poor uptake to a lack of perceived benefit. “It seems that for many of us the value proposition promised by IoT in the home is simply not yet worth the revolution to our current way of living, and for most, it won’t be until a major home renovation project that we will see broader adoption of technology into our homes.”
Smart entertainment easy & attractive
In contrast, Deloitte attributes the uptake in smart entertainment to their ease of connection and the attractive benefits they bring. “Consumer adoption of connected entertainment devices are supported by the fact that they are effortless and easy to manage,” it says.
“Games consoles incorporate advantageous features such as automated software updates and online tournaments which enhance the consumer experience. Smart TVs allow users to stream libraries of content without leaving the couch. Online gaming and social media has driven adoption of connected entertainment, and the strong uptake of streaming video on demand services in Australia since the arrival of Netflix has seen many consumers using the capability of their connected entertainment systems to a greater extent.”
However there are other non-entertainment IoT applications that Australians have adopted eagerly. Deloitte says fitband adoption at 18 percent is world leading and double the global average. The other countries closest are Norway (16 percent), Finland (15 percent) and Canada (12 percent). Furthermore purchasing intentions suggest that usage next year could rise to 25 percent, Deloitte says.
