Consumer Adoption of IoT Devices Expected to Surge Across Demographics

A new report from Acquity Group, now part of Accenture Interactive, indicates that consumer interest in Internet of Things (IoT) technology is expanding rapidly. According to the 2014 State of the Internet of Things Study, nearly 69 percent of consumers plan to purchase an in-home connected device within the next five years.

Currently, approximately 4 percent of surveyed consumers own an in-home IoT product such as a smart thermostat or security camera. By the end of the following year, ownership is projected to reach about 13 percent. The findings suggest that connected devices are transitioning from niche adoption toward broader market penetration.

Wearable Technology Leads Near-Term Growth

Wearable IoT devices—including smartwatches and fitness trackers—are expected to see the most immediate expansion. By 2015, 22 percent of consumers are projected to either own or plan to purchase wearable fitness devices. Within five years, adoption in this category is expected to reach 43 percent.

The study also forecasts steady growth for other connected devices:

• Smart thermostats: 13 percent projected adoption within one year; 43 percent within five years.
• Connected security systems: 11 percent adoption in the next year; 35 percent over five years.
• Smart clothing and heads-up displays: slower uptake, with only 3 percent projected adoption in the next year and between 14 and 16 percent within five years.

While wearable fitness technology is anticipated to generate early traction, consumers ultimately express stronger interest in IoT products that offer long-term convenience and integration into daily life.

Adoption Across the Consumer Spectrum

The research indicates that IoT adoption will extend beyond early adopters to include more cautious consumers. Among self-identified mass-market consumers, 92 percent expect to purchase an in-home IoT device within five years, compared to 78 percent of late adopters. Similarly, 75 percent of mainstream consumers and 62 percent of late adopters anticipate purchasing wearable devices within that timeframe.

Shorter-term projections show 45 percent of consumers and 26 percent of late adopters planning to buy in-home devices within two years. For wearables, 42 percent of consumers and 24 percent of late adopters expect to purchase within two years.

Jay Dettling, president of Acquity Group, noted that the appeal of IoT extends beyond technology enthusiasts. The findings suggest growing interest among a broad spectrum of consumers, presenting opportunities for brands to enhance customer engagement through connected products.

Gender and Generational Differences

Awareness and adoption vary by gender and age group. Nearly 19 percent of men report familiarity with IoT, compared to just over 8 percent of women. Men are somewhat more likely to identify as early adopters and to plan future wearable purchases—53 percent versus 45 percent for women. However, women are slightly ahead in current adoption of wearable fitness devices.

Age-based trends reveal that Millennials (ages 18–25) demonstrate strong future purchase intent for both in-home and wearable technologies. More than half plan to adopt in-home IoT devices within five years, compared to about one-third of Baby Boomers. Yet older consumers show relatively higher current ownership of some products, such as smart thermostats.

Generation X respondents (ages 26–35) exhibit particularly strong interest in wearable fitness technologies, with 59 percent planning adoption within five years.

Regional Variations in Adoption

Geographic differences also emerged. Consumers in the Northeast show the highest projected adoption of in-home IoT devices at 74 percent within five years, compared to 68 percent in the Midwest and 66 percent in the Southeast. Northeastern consumers are significantly more likely to plan adoption of smart smoke detectors within the next year.

Wearable technology interest remains high across regions, with 58 percent of Northeastern respondents planning adoption within five years, closely followed by the Southeast and Midwest.

Implications for Brands and Industry

The study, based on responses from more than 2,000 U.S. consumers, highlights how connected technologies are poised to influence customer experience strategies across industries. As IoT adoption expands, brands gain new opportunities to deepen engagement, gather behavioral insights and generate revenue through digitally connected ecosystems.

Accenture and its digital marketing division emphasize that IoT growth represents a significant transformation in how businesses interact with customers. As connected devices become more prevalent, organizations that effectively integrate IoT capabilities into their strategies are likely to enhance customer satisfaction and long-term performance.