The Internet of Things (IoT)—intelligent devices and other objects that connect and share data over the Internet—is no longer relegated to the realm of science fiction, but is quickly advancing into the average home.

Accenture estimates that the connected home market—characterized by “smart” appliances, heating systems, security and more—could reach $235 billion globally by 2016, and that nearly 69 percent of consumers will own an in-home IoT device by 2019.

In our 2015 Digital Consumer Survey for Communications, Media and Technology, we interviewed 24,000 consumers in 24 countries to gauge their appetite for new smart-home connected products and services. This study examines the types of connected products consumers are interested in, and what they’re willing to pay in both money and privacy. We looked at six areas:

  • Type of service—Entertainment, education, home monitoring, health/fitness, online security and storage.
  • Provider—Telecom operator, broadcaster/cable operator, consumer electronics manufacturer, sporting gear manufacturer, doctor/hospital, and insurer.
  • Level of customer support—Ranging from no service to premium service.
  • Level of configuration required—Automatic or self-configuration.
  • Level of data privacy—Ranging from personal data used by provider only to data shared with third parties.
  • Price—From no extra cost to 200 percent or more.

The survey shows that although price comes in as the first criterion in consumers’ decision-making regarding the purchase of a connected home product, it does not dominate the decision (see chart below).

Relative importance of each component in the decision to purchase connected services
View the image.

We also found noticeable differences between geographies in the relative importance of this criteria, with monthly price more important in mature country.

Relative importance of each attribute in the decision making process
View the image.

We also found that although consumers will always be interested in low cost, there are many service attributes that can be differentiating for a good portion of the population with again significant differences by geography and customer segments:

  • 28 percent are ready to pay on top of what they currently pay for phone, Internet and TV access at home
  • 17 percent would prefer broadcast, cable, or telecom operators as providers
  • 27 percent want entertainment services
  • 44 percent prefer that personal data is used by the provider only to operate the service
  • 42 percent prefer premium customer service
  • 56 percent prefer automatic configuration.

With so many parameters coming into play, we decided to dive further to understand the potential attractiveness of insurance connected home offerings which I will cover in my next Blog.

Other papers on the topic that you might find useful:

The 2015 Accenture Digital Consumer Survey for Communications, Media and Technology

The Connected Home: New Opportunities for P&C Insurers

Accenture 2013 Consumer-Driven Innovation Survey: Playing to win

The Customer-centric Insurer in the Digital Era

Double the profits: How high-performance insurers can create business value from digital transformation

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