Gavin Miller, CEO, Asurion Europe
As a society, our reliance on digital devices continues to grow as we find new ways to weave connected technology into all manner of products. In the past decade or so we have seen TVs, speakers, doorbells and more incorporating ‘smart’ elements, adding to our network of home devices. Consumers are keen to adopt tools that save time and money, and strengthen safety. The proof is in the numbers: the global smart home appliance market, for instance, is set to more than double in value – from $59 billion in 2022 to $143 billion by 2030.[i]
All this technology is changing the way we go about our daily activities. We are able to do chores like our weekly food shop without leaving the home and enjoy entertainment via multiple platforms. But this is not to say we have disregarded the old ways completely. Book consumption has risen[ii] and for some items we still prefer to go to a physical store. To take advantage of emerging opportunities, technology manufacturers and retailers must be able to understand changing behaviours and anticipate future trends.
The current state of play
In 2016, around two thirds of the population were familiar with the idea of smart home technology, but that number has grown over the last seven years – driven in part by the popularity of items like smart speakers.[iii]
According to one 2023 analysis, the percentage of UK adults owning at least one connected home device sat at around 80%, a three percent growth from 2022 – reflecting the leisurely but reliable increase in uptake in this sector.[iv] This ownership is reasonably consistent through different age groups, though differences emerge when we look at multi-device ownership. 43% of 16-24 year olds and 45% of 25-34 year olds own three or more devices, a significant increase compared to the overall UK multi-ownership average of 34%. These groups are key to the future adoption of these devices; as they continue to gain spending power and move into their own homes, it is likely they will acquire more smart products.
While awareness of connected products has certainly grown, there is a mixed picture when we attempt to understand how frequently we are purchasing and using these products. To gain a clearer understanding, Asurion Europe’s recent study investigated the adoption and usage rates of smart home devices in the last few years.
Measuring growth: Adoption & usage
Asurion’s Adoption Index reflects the population’s access to devices and channels, based on factors such as: internet users, adult social media users, mobile internet users, wearable owners and the penetration of smart home devices. Meanwhile, the Usage Index displays the amount of time we actually spend using these products, for activities like browsing the internet and social media, streaming TV, playing on games consoles, and online shopping.
There is an important distinction between the two. Though someone may have a social media account or own a smartwatch, it is not necessarily the case that they using the account or smartwatch. In fact, YouGov found that around one in ten smart watch owners do not use their device[v]. For platforms like social media accounts which are free to acquire, this number is likely to be much higher.
This explains why usage rates typically lag behind adoption, as Asurion found in the study. When a new smart home product enters the market, there is often a gap from the point where it is an item of novelty to when it has become a well-used part of the furniture.
The opportunity gap
With that in mind, the Adoption and Usage indices below give us two very different but useful insights. The Usage Index demonstrates our current dependency, while the Adoption Index indicates our potential future dependency. Monitoring these indices in the coming years should shed light on the speed of usage, and when we are likely to see the latest home tech truly take off. The current gap between adoption and usage therefore represents an opportunity for technology firms, highlighting crucial points for promoting products, stimulating further usage or encouraging eventual device replacement or upgrades.
Technology companies who are acutely aware of these changing trends and demands from their customer base will be best placed to develop offerings that capture the imagination of consumers. However, as we become more reliant on the connected functionality of our devices and their ability to perform a range of tasks, the inconvenience of device failures will only become greater. In fact, our recent survey of over 2,000 consumers found that at least once a quarter, over a third of respondents experience a significant issue with one electronic device in the home. This means support from comprehensive and affordable tech protection services will be increasingly valuable to ensure the full collection of devices in our connected homes remain 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.
