Contributed Article
by Gavin Miller, CEO, Asurion Europe
Over the last decade or so, we’ve seen an increasing reliance on our digital devices, with the average UK user now spending close to six hours per day on the internet.[i] Additionally, we are seeing more household items than ever before with connectivity capabilities. Appliances such as TVs, speakers, thermometers and even microwaves now often include a ‘smart’ element that sees them become part of our network of online devices in the home – saving us money, improving the quality of our lives, and strengthening our security. These items are gaining popularity, with the global smart home appliance market projected to be worth over $143 billion by 2030 – a massive growth from the $59 billion in 2022.[ii]
This growing dependency on digital devices and online services is radically changing our behaviours, leading many to predict a drastic decline in traditional activities and channels. Ironically though, book consumption has risen.[iii] And for certain items, we still want to go to the shops. As businesses, how then can we truly understand the impact of digital dependency and what trends should we monitor to take advantage of this rapidly growing market?
Analysis: Usage vs adoption
Firstly, our familiarity with smart home technology is certainly increasing. Comparing attitudes in 2016 and 2023 shows a gradual increase in consumers knowledge of smart homes, and a reduction in people saying they know nothing about it.[iv] What is interesting is the length of time it takes for awareness to be followed by actual use of new products and technologies.
Asurion Europe’s recent study examined the adoption and usage rates of smart devices in the home. Our Adoption Index represents access to devices and channels, and is based on factors such as the number of internet users, adult social media users, mobile internet users, wearables owners, and penetration of smart home devices. On the other hand, our Usage Index represents how much time is actually spent on these digital devices and channels, for activities such as streaming TV, browsing the internet and social media platforms, playing on games consoles, and shopping online.
What is the relevance of these indices?
Owning a smart watch or having a social media account does not necessarily mean that the watch or account is being intensively used. This is why usage rates typically lag behind adoption, with this gap growing in recent years, as we get used to a variety of new devices and what these devices can offer us. The Usage Index therefore indicates current dependency, while the Adoption Index represents potential future dependency. As smart technology becomes more familiar, we’ll start to see the gap closing between usage and adoption. And the more usage of smart devices grows, the more our dependency on smart home devices will increase.
Across all age groups, adoption of some form of smart connected devices sits at around 80%.[v] However, real differences among the population emerge when we analyse multi-device ownership. When looking at ‘advanced adopters’ – those owning more than three connected home devices – we see a skew towards young adults, with 43% of 16-24 year-olds and 45% of 25-34 year-olds in this category.[vi] This is compared to the overall UK average of 34%. As these younger generations gain increasing spending power and start to move into their own homes, we are likely to see an even greater surge in demand from these age groups.
Digital dependency – the positive impact
This brings us back to the impact of digital dependency on our daily lives. Of course, there are many points of discussion here. However, it is interesting to observe the positive impact of connected home products in improving quality of life, by helping to battle the rising cost of living, generating more leisure time and improving home security, for instance. Through this lens, it is perhaps less surprising that consumers are still enjoying trips to the shops and taking the time to select physical books.
Home connectivity
More consumers are spending time working from home, thanks in part to better internet and other advancements in remote working tools that allow us to be just as (if not more) efficient[vii] away from the office. It means that the home and its maintenance are receiving more attention than previously. Smart devices can be critical in this transformation, allowing us to eliminate completely, or spend less time on, menial chores.
Home entertainment
In many ways, whether by enabling remote working or simplifying home maintenance, connectivity has created more time in our lives for leisure – and digital platforms for gaming and streaming are a growing component of that leisure time. Since Netflix launched their streaming service in 2007, the medium has only grown in popularity, with nearly half of UK internet users using two or more streaming services as of October 2022.[viii] This has to be in large part due to the development of smart TVs bringing together multiple entertainment options, so that consumers can watch a show or resume gaming in one place. A wider variety of streaming services and the ensuing competition has also made the price of these services more accessible to all.
Home efficiency
As well as freeing up time, connected products may also produce financial economies in the long-term. For instance, high energy costs have made smart utility goods especially attractive. In one survey, around two in five owners of energy savings devices said they expected to recover the initial costs of the device itself through energy savings within a year.[ix] Smart thermostats with the ability to control hot water and radiators are becoming increasingly intelligent, learning when users are likely to be at home and therefore when they will want heating or hot water[x], helping to build a more energy-efficient – and as a result, cost-efficient – home.
Home safety
Finally, smart devices providing security to homeowners are rapidly growing in popularity. Around one in five households own smart doorbells and security systems,[xi] while almost two-thirds want some sort of security system in their smart homes.[xii] Perhaps a less well-established use of smart security devices is supporting those who are elderly, unwell or have a disability. One company has designed sensors that can be connected to fridges, kettles, or toilets to help indicate healthy food and water consumption among other behaviours – allowing those who are less able to live independently but with critical monitoring. [xiii]
Supporting a digitally dependent society
The inevitable rise in the usage and range of smart home devices is creating efficiencies that we’re becoming used to. This creates new opportunities and interest, in further efficiency-producing tech and new game-changing applications, but also in related services and subscriptions, whether this is to create a premium experience, enjoy the latest upgrades, or access speedy support when needed. Tech providers who are monitoring awareness, interest and actual usage are best placed to develop these offerings, constantly taking the smart experience to new heights. However, increasing digital dependency means that the risk of device failure can bring our connected lives to a crashing halt. So it is essential nowadays to have a comprehensive (but affordable) tech partner that can make sure all devices in the connected home stay up and running.
As CEO of Asurion Europe, Gavin Miller is leading the expansion of the global tech care company in the region. Gavin started his career at global customer experience company Sitel (now Foundever) before moving on to C-suite roles supporting rapid growth and acquisition in a range of businesses, including the largest telephone fundraising specialist in the UK, a commercial contact centre business and a provider of debt management services.
[i] Statista. (2023). Average daily time spent using media in the United Kingdom (UK) in the 3rd quarter 2022. https://www.statista.com/statistics/507378/average-daily-media-use-in-the-united-kingdom-uk/
[ii] Yahoo! Finance. (2023). Smart Services Take the Lead: Services Segment Shows Highest CAGR of 11.98% During Forecast Period in Global Smart Home Appliances Market. https://uk.finance.yahoo.com/news/smart-services-lead-services-segment-124900989.html
[iii] The Reading Agency. (2022). A quarter of UK adults started reading more during lockdowns and have continued to, finds new survey to mark World Book Night 2022. https://readingagency.org.uk/news/media/a-quarter-of-uk-adults-started-reading-more-during-lockdowns-and-have-continued-to-finds-new-survey.html
[iv] Tech UK. (2023). State of the Connected Home 2023. https://www.techuk.org/resource/state-of-the-connected-home-2023.html
[v] Tech UK. (2023). State of the Connected Home 2023. https://www.techuk.org/resource/state-of-the-connected-home-2023.html
[vi] Tech UK. (2023). State of the Connected Home 2023. https://www.techuk.org/resource/state-of-the-connected-home-2023.html
[vii] https://www.forbes.com/sites/glebtsipursky/2022/11/03/workers-are-less-productive-working-remotely-at-least-thats-what-their-bosses-think/
[viii] https://www.statista.com/statistics/1356593/number-video-streaming-platforms-uk/
[ix] Tech UK. (2023). State of the Connected Home 2023. https://www.techuk.org/resource/state-of-the-connected-home-2023.html
[x] The Independent. (2022). How to save money on your energy bills with smart home devices. https://www.independent.co.uk/extras/indybest/gadgets-tech/energy-prices-smart-home-devices-b2235191.html
[xi] This is Money. (2023). Could your smart doorbell land you in court? How to keep your home safe AND stay on the right side of the law. https://www.thisismoney.co.uk/money/bills/article-12271963/Smart-doorbells-break-law-safe.html
[xii] Tech Report. (2023). 37+ Smart Home Statistics and Facts (2023 Updated Data). https://techreport.com/statistics/smart-home-statistics/
[xiii] MedTech Innovation. (2022). Meet the start-up: Sensing smarter care. https://www.med-technews.com/medtech-insights/medtech-start-up-insights/meet-the-start-up-sensing-smarter-care/