Study also finds ownership of wearable devices will double in the next year
August 19, 2014 – Consumer adoption of network connected technology is on the rise, with 69 percent of consumers planning to buy an in-home device in the next five years, according to the 2014 State of the Internet of Things Study. By the end of next year, a total of about 13 percent of consumers will own an in-home IoT device such as a thermostat or in-home security camera. Currently, only about 4 percent of those surveyed own such a device.
Adoption of wearable IoT technology such as smart watches and fitness devices is also expected to gradually increase, with nearly half of consumers already owning or planning to purchase a device in this category in the next five years.
The study was conducted by Acquity Group, a leading Brand eCommerce® and digital marketing agency, now part of Accenture Interactive. The Internet of Things describes the digital connection of physical, identifiable devices to the Internet where the data and devices communicate in an intelligent fashion.
Fit-Tech Expects High Yields Early; In-Home Tech Longer-Term Investment
Wearable fitness devices will generate the most mass consumer adoption in the next year, with 22 percent of consumers already owning or planning to make a purchase by 2015.
While findings reveal consumers are more likely in the next year to adopt connected devices that emphasize health and safety, they are most focused on how IoT products can provide integration to help them live more conveniently long term.
Taking into account respondents who already own these products, the following connected devices are expected to be most popular over the next few years:
- Wearable fitness devices (Expected to have 22 percent adoption by 2015; Expected to have 43 percent adoption in the next five years).
- Smart thermostats (13 percent projected adoption in the next year; 43 percent in the next five years).
- Connected security systems (11 percent adoption in the next year; 35 percent in the next five years).
Majority of Self-Identified Late Adopters Plan to Purchase IoT Devices by 2019
The research reveals ownership will also extend from tech-savvy consumers to late adopters in the next five years. Both plan to purchase wearable and in-home IoT devices by 2019:
- 92 percent of those who considered themselves mass consumers on the adoption curve and 78 percent of late adopters say they’ll purchase an in-home IoT device in the next five years; 45 percent of consumers and 26 percent of late adopters plan to purchase an in-home device in the next two years.
- 75 percent of consumers and 62 percent of late adopters say they’ll purchase a wearable device in the next five years; 42 percent of consumers and 24 percent of late adopters plan to purchase a wearable device in the next two years.
Expected Wearable Growth Varies by Gender and Age
More than twice as many men as women say they have heard of the IoT (nearly 19 percent versus just over 8 percent). The study indicates men are slightly farther ahead on the adoption curve than women, with men more likely to identify as early adopters:
- 53 percent of men plan to purchase wearable technology in the next five years, compared to 45 percent of women — however, when it comes to wearable fitness devices, women are slightly more likely to have already adopted than men (8 percent compared to 7 percent).
- Men are more likely to plan to purchase an in-home IoT device, such as a smart refrigerator, in the next five years compared to women (70 percent compared to 67 percent).
- 53 percent of Millennials (ages 18-25) plan to buy an in-home IoT technology device in the next five years, compared to 32 percent of Baby Boomers (over the age of 45).
- 36 percent of Millennials plan to adopt wearable technology in the next five years compared to 25 percent of Baby Boomers.
- 45 percent of Baby Boomers plan to adopt a smart thermostat in the next five years, compared to 35 percent of Millennials.
- 59 percent of Generation X consumers (ages 26-35) plan to adopt wearable fitness technology in the next five years, compared to 47 percent of Millennials.
The findings of the nationwide study indicate that consumers living in the top ten largest U.S. cities are more likely to identify as early adopters than the national average. Findings also varied by region:
- 74 percent of consumers living in the Northeast plan to adopt an in-home IoT device in the next five years, compared with 68 percent in the Midwest and 66 percent in the Southeast.
- Consumers living in the Northeast are approximately 50 percent more likely to adopt a smart smoke detector in the next year than those living in the Southeast and Midwest.
- 58 percent of consumers living in the Northeast plan to adopt wearable technology in the next five years, with the Southeast and Midwest close behind at 57 and 55 percent.
The Acquity Group 2014 State of the Internet of Things Study surveyed more than 2,000 consumers across the United States to gain insight into their preferences for and barriers against use of the Internet of Things. The survey analyzed consumer behavior across a variety of areas, including current adoption, perception, barriers and plans for future adoption. Results were broken down based on demographics, including age, gender and location. As a leading provider of digital marketing, interactive design, and eCommerce solutions, Acquity Group works with some of the world’s largest brands to improve the user experience, leading to increased revenue and loyalty. Acquity Group completed this survey to help executives in B2Ccompanies gain a better understanding of how consumers view IoT and connected technologies, as well as future plans for adoption.
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