consumer snapshot: uk and us smart home trends...familiarity no more than 19% of consumers in u.k....

32
© Parks Associates 1 Consumer Snapshot: UK and US Smart Home Trends

Upload: others

Post on 23-Jul-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 1

Consumer Snapshot:

UK and US Smart

Home Trends

Page 2: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 2

State of Smart Home in the U.K.

Familiarity No more than 19% of consumers in U.K.

broadband households are highly familiar with smart home

devices, like smart light bulbs, smart thermostats, and

smart door locks. 16% or less find these products very

affordable. The industry has not succeeded in raising

awareness among mass market consumers in the U.K.

to sufficiently drive adoption.

Ownership 16% of U.K. broadband households own

at least one smart home device. It is an early market.

NPS: -5-50 NPS scores for smart home products range from

26 (smart light bulb) to 50 (smart sprinkler systems). Smart

speakers are an exception – owners give these devices a -5

NPS, signaling much work is left to be done for a positive

voice assistant experience in the local U.K. market.

Demand for Interactive Security 47% of those intending to

purchase a home security system, prefer a system with

remote access, status, and control available from a

smartphone. 15% want a system that comes with smart home

devices and 26% want a system that works with smart home

devices not part of the system. Security providers have an

opportunity to expand smart home markets in the U.K.

Demand for Real-time Energy Data 61% of U.K.

broadband households rank access to real-time energy

usage data as one of their top 3 most important ways their

household could better manage energy use and cost. This

points to the success of the U.K. smart meter rollout and

messaging campaign.

High Interest in Independent Living 40% of consumers

ages 50 and older in U.K. broadband households report

high interest in sensor-based solutions that can help

them stay in their homes as they age. With a rapidly

aging U.K. (and U.S.) population, assistive technology for

seniors is a promising and important market for IoT

solutions.

Page 3: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 3

U.K. lags U.S. Smart Home Market

Across several consumer IoT markets – smart home devices, residential security, energy management, and connected health and

wellness – U.S. consumers report higher familiarity, higher adoption rates, and more enthusiasm for use cases and future

purchasing when compared to U.K. households.

One exception is the smart speaker category, which Parks Associates places in the CE category. Just two years from initial

product availability in the U.K., 23% report owning a smart speaker with voice assistant – nearly catching up with the U.S.

adoption.

0%

10%

20%

30%

40%

50%

% Owning ConnectedHealth/ Wellness Device

% Owning Smart

Speaker

% with a Home SecuritySystem

% OwningSmartHomeDevice

% Owning a DistributedEnergy Device orElectric Vehicle

% with ProfessionalMonitored Security

U.K. BB HHs(n = 5,023, ±1.38%)

U.S. BB HHs(n=10,024, ±0.98%)

Product, System, Service Adoption: U.K. vs. U.S. (2018)Among BB HHs Surveyed in Specified Countries

Connected CE

Page 4: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 4

Familiarity with smart home devices lags behind familiarity with smart entertainment products;

it even lags that of smart speakers, which are quite new in the market.

Familiarity with smart home

devices is higher in the U.S. than

in the U.K., with the biggest gap

for smart programmable

thermostats. More than one-

quarter (26%) of U.S. broadband

households are highly familiar

with these products, compared to

just 19% of broadband

households in the U.K.

69%

49%

29%

26%

19%

18%

16%

14%

12%

59%

35%

16%

16%

17%

17%

18%

16%

16%

28%

24%

19%

15%

16%

13%

12%

11%

11%

0%

25%

50%

75%

Smartphone Smart TV Smart speakerwith voiceassistant

Smart watch Smart lightbulb

Smartprogrammable

thermostat

Smart videodoor bell

Networkedcamera

Smart doorlock

Familiarity Value Affordability

Perception of Smart Home Devices in the U.K. (2018)Among All BB HHs in the U.K.

Page 5: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 5

Respondents in the U.K. find lower value in smart home device benefits than consumers

in the U.S.

Interestingly, smart speakers

have a lower perceived value

than smart thermostats, video

door bells, and light bulbs. The

diversity of skills and actions that

Alexa and Google Home can

perform is not well known, or not

valued, at least at this time.

Nearly 40% of U.S. respondents

find smart TVs very valuable,

compared to 35% of U.K.

broadband households.

59%

35%

18% 17% 17% 16% 16% 16% 16%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Smartphone Smart TV Smart videodoor bell

Smart lightbulb

Smartprogrammable

thermostat

Smart speakerwith voiceassistant

Smart doorlock

Networkedcamera

Smart watch

U.K. (n=2,514, ±1.95%) U.S. (n=4,998, ±1.39%)

Value of Benefits from Smart Home Devices by Country (2018)Among BB HHs Surveyed in Specified Countries

% R

ati

ng

"V

ery

Va

lua

ble

"

(Ra

tin

g 6

-7 o

n a

7-p

t. S

cale

)

Page 6: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 6

Those that adopt technology slowly are less likely to see clear value in smart products and

therefore are highly price sensitive.

For Early Adopters, privacy

concerns are an obstacle.

Interestingly, concerns in the U.K.

are similar to those in the U.S.

despite adoption of GDPR

(general data protection

regulation) that provides

consumers with rights to privacy

and control of data from smart

products.

6%

13%

15%

17%

22%

42%

55%

0% 20% 40% 60% 80% 100%

Other

I’m confused about how to set up or use smart home technology

I want to wait for the technology bugs to be workedout

Smart home devices would make my life morecomplicated

I have data privacy and security concerns abouthaving smart devices in my home

Smart home devices are too expensive

I don’t see any benefit to my lifestyle

U.K.(n=1,458, ±2.57%)

U.S.(n=2,361, ±2.02%)

Smart Home Devices: Reasons for No Purchase Interest by Country (2018)Among Smart Home Device Non-owners and Non-intenders in Specified Countries

Page 7: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 7

Saving money is the highest positive influencer for the purchase of smart home devices.

Consumers often justify an

emotional purchase with logical

arguments. Smart products that

deliver cost savings and have a

compelling industrial design will

lead the pack.

71%

62%

62%

47%

56%

49%

38%

26%

32%

30%

41%

32%

38%

43%

4%

6%

8%

12%

12%

12%

19%

0% 20% 40% 60% 80% 100%

A service that comes to my home to recommend the bestsmart home devices for my routines and home layout

The ability to try smart devices out at a retail location withknowledgeable staff

A service that comes to my home to set up the devices andteach me how to use them

A discount on my home insurance premium

The ability to exercise control over how my data is collectedor used

Incentives or rebates that make smart home devices cost thesame as regular home products

The ability for the product to save me money on myhousehold bills

No impact Slightly more likely to buy Much more likely to buy

Factors Influencing Smart Home Device Purchase Intention (Q3/18)Among Smart Home Device Non-owners and Non-intenders in U.K., n = 1,458, ±2.57%

Page 8: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 8

In general, smart home devices have higher NPS scores in the U.S. than in the U.K.

In the U.K. the NPS of smart

speakers is negative! Amazon,

Google Home, and others clearly

need to better adapt their

products for the U.K. market.

The differences in user

experience across countries also

highlight challenges in other

categories, as global companies

work to adapt their products to

the local market.

-10 0 10 20 30 40 50 60 70

Smart speaker with personal assistant

Smart light bulb

Smart plug/adapter module

Smart thermostat

Smart in-wall outlet/switch or dimmer

Smart motorized garage door opener

All-in-one security product

Smart video doorbell

Smart lighting control system

Networked camera

Outdoor light fixture with camera

Smart water leak/humidity detector

Smart door lock

Smart water shut off valve

Smart smoke or CO detector

Smart sprinkler system

U.K.

U.S.

Smart Home Devices: Net Promoter Score by Country (2018)Among Smart Home Device Owners in Specified Countries

Net Promoter Score

Page 9: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 9

17%

9%

23%

24%

28%

30%

30%

35%

36%

36%

37%

38%

46%

50%

51%

0% 10% 20% 30% 40% 50% 60% 70%

None of the above

Is a brand I previously purchased.

Not use excessive bandwidth

Use my preferred networking technology

Not cost more than a non-smart product

Allows all devices to be controlled from one app

Work with other smart products

Keep communication with the product secure

Offer technical support

Be upgradable when new software releases are available

Be removable, so I can take it with me when I move

Keep the data generated from the product private

Be easy enough to install so that I can install it myself

Have no monthly service fees

Have long battery life

U.K.(n=2,514, ±1.95%)

U.S.(n=2,510, ±1.96%)

Essential Characteristics for Smart Home Products by Country (2018)Among BB HHs Surveyed in Specified Countries

Long battery life and no monthly service fees are two essential characteristics for smart home

products.

In both countries, half of

consumers are unwilling to pay

monthly service fees for smart

products.

Given that familiarity with smart

products is low, it is challenging

to ask consumers to pay for

services that they do not fully

understand. Freemium models

and a free basic tier of service

are strategies to overcome this

obstacle.

Another way to look at this data is

that 50% of consumers are willing

to pay some monthly fees, i.e.,

they are ok with monthly fee.

Targeting these customers is the

early opportunity.

Page 10: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 10

Residential Security

Page 11: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 11

Industry Insight: Residential Security

In the U.S., the residential security industry is a leading channel for smart home platforms, where

23% of households subscribe to professional monitoring services. However, in the U.K., only 5% of

broadband households have professionally monitored security. More than twice as many homes

(12%) instead opt for a self-monitored option.

Meanwhile, high attrition is a challenge. More than one-third of professionally monitored households

report they are very likely to switch service providers within the next 12 months, while nearly half

(48%) are at least somewhat likely to switch providers.

Despite these challenges, the top six professionally monitored security players in the U.K. enjoy

positive NPS scores. In addition, and somewhat paradoxically, NPS scores of these services are

much higher in the U.K. than in the U.S.

Page 12: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 12

The percent of households with home security systems and professional monitoring is

significantly higher in the U.S. while self-monitoring is more common in the U.K.

Among all broadband

households in the U.K., 12%

are self-monitored households,

compared to just 2% with self-

monitoring in the U.S.

The difference in professional

monitoring is attributable to

lack of police response in the

U.K., while police response is

the standard approach in the

U.S.

A difference in housing types,

row homes in U.K. suburbs vs.

stand-alone homes in U.S.

suburbs, may also impact

adoption.

17%

5%

12%

0%

10%

20%

30%

40%

50%

HHs with home securitysystem

Professionally monitored HHs Self-monitored HHs

U.K. (N=5,023, ±1.38%) U.S. (N=10,025, ±0.98%)

Overview of Residential Security Market by Country (2018)Among All BB HHs in Specified Countries

Page 13: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 13

Self monitored or bell alarms in U.K. sound an alarm in the event of an intrusion. More than

one-fourth (27%) of owners also receive notifications on their phone.

In the U.K., simply having an

alarm sound off in the case of an

intrusion is still the most common

method of deterrence, but 27%

also receive a notification on their

phone and 16% have a security

guard dispatched by their

professional monitoring service.

2%

11%

12%

16%

27%

42%

0% 10% 20% 30% 40% 50%

Nothing

A professional monitoring service contactsme to verify there is a problem

A professional monitoring service looks acameras to verify there is a problem

A security guard is dispatched by aprofessional monitoring service

Alarm and phone notification

An alarm

Actions Taken on Intrusion by Security System (2018)Among the 17% of U.K. BB HHs with Any Home Security System, n = 867, ±3.33%

Page 14: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 14

While protecting homes, families, and themselves are the primary drivers for 68% of security

system owners, 32% list other reasons.

While home control features are

a distant, secondary

consideration today, going

forward, home controls can play

a larger role. Leveraging

technology to enhance lifestyle is

an opportunity to expand the

market for the security industry.

2%

5%

5%

5%

7%

7%

17%

23%

28%

0% 10% 20% 30%

Others

Control lighting/thermostats remotely

Monitor pet

Check in on my loved ones when I'm away

Monitor household help

Check in on my home in absence

Feel safer personally

Protect family/loved ones

Protect home and its belongings

Home Security System Purchase Drivers (Q3/18)Among U.K. BB HHs Purchasing Home Security System in Last 2 Years, n = 192, ±7.07%

Page 15: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 15

Purchase intentions for systems with smart home devices as part of the security system bundle

are significantly lower in the U.K. than in the U.S.

Nearly twice as many security

system intenders plan to

purchase a system that comes

with other smart devices as part

of the security system in the U.S.

compared to the U.K.

The leading category for

purchase intentions in both

countries is a system that can be

monitored or controlled via

smartphone.

Over half (52%) of security

system intenders in the U.S. plan

to purchase one of these

systems, while 47% of U.K.

intenders plan to do so.

15%

26%

36%

47%

0% 20% 40% 60% 80% 100%

A system that comes with other smart devicesas part of the security system

A system that works with other smart devicesthat are not part of the security system

A low cost, no frills solution

A system that can be monitored or controlledfrom my smartphone

U.K(n=437, ±4.69%)

U.S.(n=867, ±3.33%)

% Intending to Purchase Specified Type of Security System

Types of Security System Intended to Purchase by Country (2018)Among Security System Intenders (Rating 5 - 7) in Specified Countries

Page 16: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 16

24% of U.K. consumers in broadband households own a product or system that they can use in

an emergency.

Traditional Personal Emergency

Response Systems (PERS) come

in the form of a pendant,

bracelet, or belt clip with a large

panic button and accompanying

professional monitoring service.

8% of U.K. broadband

households report having a panic

button on a home security system

control panel that can act as an

emergency assist – if the person

in need has the mobility and

consciousness to get to and push

the button on the panel.0.4%

7%

8%

9%

11%

0% 10% 20%

Other personal emergency response system

A home monitoring system with sensors

A panic button on a home security systemcontrol panel

A panic button on a smartphone

A panic button on a pendant, watch, bracelet,or belt clip

U.K.(n=2,514, ±1.95%)

U.S.(N=10,025,±0.98%)

% Respondents Using PERS

Personal Emergency Response System Adoption by Country (2018)Among BB HHs Surveyed in Specified Countries

Page 17: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 17

Energy Management

Page 18: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 18

Industry Insight: Energy Management

The growth of the smart home, boiler services, distributed energy, and electric vehicle markets creates

opportunities for partnerships. Many of these products and services share the same customer. Innovators and

early adopters of technology are also early adopters of boiler services and distributed energy products, and this

overlap of ownership creates a market opportunity for a broad residential energy management solution.

As adoption expands from early adopters to the early majority, cost becomes a significant barrier. Early

adopters look at a product and see clear value, but the early majority looks at the same product and sees only

marginal value. A hardware-as-a-service model is one approach to mitigate concerns about upfront cost of

smart products and smart home systems. This model can also be applied to mature products such as heating

equipment and renewable power generation systems.

Energy savings is a motiving factor in the purchase of smart products. Smart thermostats are one of the leading

product categories in terms of adoption. That fact puts smart thermostats in the driver’s seat in terms of

partnerships. Smart thermostat vendors are piloting demand response capabilities in the EU, which provides

new service revenue opportunities, especially as adoption continues to expand.

Page 19: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 19

Smart thermostat ownership in the U.S. is about twice that of the U.K.

Smart thermostats typically

require a device be installed on

the boiler, which may be done

only by a certified plumber. Nest

recommends only a professional

install its 2nd or 3rd gen Nest

Learning Thermostat. This limits

adoption.

However, Nest has introduced its

Nest E model as a DIY product

that can be installed by the end

user, depending on the system.

It launched in Oct 2018 and is

available at Currys PC World and

other retailers. 0%

5%

10%

15%

20%

U.K.(N=5,023, ±1.38%)

U.S.(N=10,025, ±0.98%)

Smart Thermostat Ownership by Country (2018)Among All BB HHs in Specified Countries

Avg #

owned

= 1.1

Avg #

owned

= 1.2

Page 20: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 20

2%

7%

7%

17%

76%

0% 20% 40% 60% 80%

I do not have heating in myhome

I have a ductless heat systemthat blows air directly from the

equipment

I have radiant floor heating

I use a fireplace, stove, spaceheater or other direct source of

heat that does not distributeheat beyond a single room

I have a boiler

Heating Equipment Ownership (Q3/18)Among U.K. BB HHs Surveyed, n = 2,514, ±1.95%

% of BB Households Owning Specified Equipment

The vast majority of households in the U.K. have a boiler for heat and do not use air conditioning

for cooling. Smart thermostats must integrate with boiler controls.

63%

4%

4%

4%

6%

6%

19%

0% 20% 40% 60% 80%

I do not have air conditioning in myhome

I have a window air conditioning unit orunits

I have a ductless cooling system thatblows air directly from the equipment

I use fixed ceiling fans to cool rooms ofmy home

I have a portable air conditioning unit

I have a central air conditioning systemthat distributes cold air around my

home through air vents

I use portable fans as needed

Cooling Equipment Ownership (Q3/18)Among U.K. BB HHs Surveyed, n = 2,514, ±1.95%

% of BB Households Owning Specified Equipment

Page 21: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 21

21% of U.K. households pay an annual fee for boiler maintenance service.

While boiler service agreements

may not be considered high tech,

those that embrace technology

are more likely to research and

understand the benefits of any

product or service.

These groups are also the least

price sensitive, as they see clear

value.

Yes, 21%

No, 79%

Annual Fee for Boiler Maintenance Service (Q3/18)Among U.K. BB HHs Surveyed, n = 2,514, ±1.95%

Page 22: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 22

8%

9%

9%

9%

10%

10%

10%

10%

10%

10%

10%

10%

11%

11%

12%

13%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Smart motorized garage door opener

Smart sprinkler system

Networked camera

Smart in-wall outlet/switch or dimmer

Smart water leak/humidity detector

Smart door lock

Smart water shut off valve

Smart plug/adapter module

Smart lighting control system

Outdoor light fixture with camera

Smart thermostat

All-in-one security product

Smart video doorbell

Smart speaker with personal assistant

Smart smoke or CO detector

Smart light bulb

U.K.(n=2,514,±1.95%)

U.S.(n=5,018,±1.38%)

Smart Home Devices: High Purchase Intention by Country (2018)Among BB HHs Surveyed in Specified Countries

% Rating "Very Likely to Purchase" (Rating 6-7 on a 7-pt. Scale)

More consumers in the U.K. intend to purchase light bulbs, smoke detectors, and smart

speakers than other smart devices.

Light bulbs have a limited

lifetime, so consumers are in the

market for new bulbs frequently.

Additionally, EU directives

mandate the phasing out of

incandescent light bulbs, which is

an opportunity for new lighting

products.

With sales of smart speakers set

to outpace the combined unit

sales of locks, lights,

thermostats, cameras, and

smoke detectors, smart speakers

will be a dominant force in U.S.

households. The same outcome

is likely in the U.K.

Page 23: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 23

Since boiler maintenance services are leading the way in U.K. households, service providers are

in the prime position to extend their offering to include adjacent products.

While whole-home energy

management solutions are still

emerging, looking forward, when

adoption of all of these products

expands, a system that integrates

energy generation, storage, and

demand will be necessary.

Solar and storage vendors are

piecing together solutions

through direct partnerships today,

but expanding the ecosystem will

become more important as

adoption of smart products and

energy solutions accelerates.

21%

15%

9%

6%

0%

5%

10%

15%

20%

25%

Boiler maintenanceservice

Energy generationand storage

Smart lighting device Smart thermostat

Overview of Energy Devices and Service Ownership (Q3/18)Among All U.K. BB HHs, N = 5,023, ±1.38%

Page 24: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 24

The overlap between boiler maintenance services and energy storage is significant.

Today Innovators and Early

Adopters have both boiler

maintenance services and energy

generation and storage products.

This overlap provides the basis

for a whole-home energy

management solution.Energy

Generation &

Storage = 15% Boiler

Maintenance

Service

=21%

Smart

Lighting

Device =

15%

Smart

Thermostat =

6%

Ownership Crossover: Energy Product/Service Adoption (Q3/18)Among All U.K. BB HHs, N = 5,023, ±1.38%

Page 25: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 25

Connected Health and Aging in Place

Page 26: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 26

Industry Insight – Wellness, Telehealth, & Independent Living

The in-person office visit is the traditional foundation for the doctor-patient relationship, but as healthcare costs continue to

mount, even this enduring standard of care is under consideration for reforms and cost-saving changes. The push to engage

consumers outside of the facility, combined with advances in consumer technology, has created several distinct markets for

connected health products and services.

• On-demand virtual care services provide a convenient way for consumers to gain access to a doctor quickly, when

distance, scheduling, or condition makes visiting in person difficult. Solutions in the U.K. – like those from Babylon Health

and Ada – often feature AI-powered symptom checkers that help users better understand the type of care they need and

act as a triage tool for care providers.

• Connected medical devices and consumer fitness products provide users with new insights into their own health.

Wearables in particular are experiencing considerable adoption; top-of-the-line models are integrating new and better

sensors to improve accuracy and insight.

• Independent living solutions, which encompass a variety of assistive technologies, enhance seniors’ ability to stay in

their home safely as well as enhance communication with loved ones.

We expect to see the lines between these markets blur as care providers experiment with consumer devices as part of

larger remote patient monitoring programs. Furthermore, technology companies are now realizing the manifest

opportunity to serve the growing market of seniors in the U.K. with devices and services that address those citizens’

overwhelming desire to stay healthy, engaged, and living in their own home.

Page 27: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 27

35% of U.K. broadband households own at least one connected health device.

In the U.S., that figure stands at

46%. GPS sports watches are

much more common in the U.K.,

while large fitness equipment –

like treadmills, exercise bikes,

and ellipticals – that have built-in

app support are much more

common in the U.S. Larger home

sizes with more space for in-

home fitness equipment may

explain the gap in adoption.

Adoption of other connected

health devices is similar across

markets.

2%

2%

2%

3%

3%

4%

4%

5%

7%

9%

12%

16%

0% 10% 20%

Pill box with a digital screen

Automatic insulin pump

Glucometer that works with a smartphone app

Pulse oximeter

Digital thermometer with an app

Standalone sleep quality monitor

Digital weight scale with Wi-Fi or Bluetooth

Blood pressure cuff that works with a smartphone app

Smart watch that can track fitness activities/heart rate

Treadmill/exercise bike/elliptical with built-in app support

GPS sports watch

Digital pedometer or fitness tracker

U.K.(n=2,514, ±1.95%)

U.S.(n=10,024, ±0.98%)

% Owning Specified Device

Adoption of Connected Health Devices by Country (2018)Among BB HHs Surveyed in Specified Countries

Page 28: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 28

About half of consumers with a chronic condition in the U.K. are interested in products and

services that would help better manage their condition.

39% of those with chronic

conditions report owning at least

one connected health or wellness

device, compared to 32% of

those without a chronic condition.

U.S. consumers report higher

confidence in the efficacy of

these measures than consumers

in the U.K. overall.

49%

12%

13%

14%

15%

18%

24%

0% 20% 40% 60% 80% 100%

None of the above

Community of individuals going through the samething

A health coach (digital or human) who uses yourinformation to make personalized recommendations

and reminders

On-demand remote consultation with a care provider

Rewards and financial incentives

Access to your health and medical information in theformat that you would like it

Health monitoring devices that work automatically totrack condition

U.K.(n=1,234, ±2.79%)

U.S.(n=2,841, ±1.84%)

Tools/Support for Better Chronic Condition Management,

by Country (2018)

Page 29: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 29

8% of consumers in U.K. broadband households used a video consultation service with a doctor

in the 12 months prior to the survey.

In 2017, NHS rolled out a

telehealth program in London,

supported by Babylon Health,

called GP at Hand. The direct-to-

consumer service enables app-

based video calls with a doctor

within two hours of requesting a

consultation.

The service is facing backlash

from some physicians, who feel it

leaves their practices with only

the most complicated and costly

patients.

This model is distinctly different

from the U.S. market.

8%

6%

0%

5%

10%

U.K.(n=2,514, ±1.95%)

U.S.(n=5,026, ±1.38%)

Video Consultation With a Doctor by Country (2018)Among BB HHs Surveyed in Specified Countries

%U

sin

g V

ide

o C

on

su

lta

tio

n

Page 30: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 30

Of the independent living solutions tested, seniors in the U.K. are most interested in a basic

PERS solution – a panic button with professional monitoring services.

37% of seniors report being “very

interested” (rating 6/7) in a home

sensor-based system, with

another 25% “interested” (rating

5).

Even without knowing specific

features and pricing, this level of

interest signals strong demand

for a smart home independent

living solution.

22%

31%

34%

35%

37%

45%

0% 20% 40% 60% 80%

A service that monitors data from connectedhealth devices and alerts about potential health

problems

A taxi/ride service that will take you to and fromdesired locations

A service that will deliver food, groceries, orother items to your home

Home security devices and services to deterhome intruders

A home system that senses emergency, andalerts necessary people

A service that lets you call for help in anemergency by pushing a button

U.K.(n=1,167, ±2.87%)

U.S.(n=2,168, ±2.1%)

Interest in Independent Living Products/Services by Country (2018)Among Respondents Who are 50 and Older in Specified Countries

% Rating "Very Interested" (Rating 6-7 on a 7-pt. Scale)

Page 31: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 31

30% of consumers in U.K. broadband households currently care for an aging family member,

or a family member with a health-related condition, or expect to in the next 5 years.

Caregiving rates are similar in the

U.S. and U.K. markets.

In the U.K., caregivers are about

equally likely to be male or

female, whereas the U.S.

caregiver population skews

female.

Current caregivers in the U.K. are

slightly more likely to report an

annual household income of

£75K or greater (21%) than the

average broadband household

(12%).

0%

20%

40%

60%

80%

100%

U.K.(n=2,514, ±1.95%)

U.S.(n=5,026, ±1.38%)

Currentcaregivers

Future caregivers

None

Caregiving Status by Country (2018)Among BB HHs Surveyed in Specified Countries

Page 32: Consumer Snapshot: UK and US Smart Home Trends...Familiarity No more than 19% of consumers in U.K. broadband households are highly familiar with smart home devices, like smart light

© Parks Associates 32

Like seniors themselves, caregivers are most interested in features that can detect safety issues

and in panic buttons that users can push for help.

Caregivers are much more likely

to desire medication reminders

for their loved one (38%) than

loved ones are to desire that

feature for themselves (17%).

Nearly a third of caregivers say

the ability to collect data from

health devices is a must-have

feature of an independent living

system. This rate is significantly

higher than the 11% of seniors

who desire this feature for

themselves.

27%

28%

30%

31%

31%

33%

34%

34%

38%

38%

39%

39%

42%

42%

45%

0% 10% 20% 30% 40% 50%

Video calls with loved one through their TV

Cameras inside their home

Automatic alert sent to you to check in one loved one

Interact with the system using their voice feature

Ability to collect data from health devices

Cameras outside the home

Monitoring by a professional service

Scheduling/calendar tool to keep track of appointments

Medication reminders

Alerts if they leave the water running

Alerts if they leave the door unlocked

Home security devices and services

Ability to detect fire/water/gas leaks

Alerts if they leave the stove on

Button on watch or pendant they can push for help

Must-Have Home Independent Living Features (Q3/18)Among Current Caregivers in U.K. BB HHs, n = 334, ±5.36%

% Specifying Must Have Feature