High prices and scepticism hinder adoption of IoT in home among UK consumers

High prices and scepticism hinder adoption of IoT in home among UK consumers
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A report from Deloitte has found that while potential customers of IoT-in-the-home products know of the advantages of the technology, adoption is being hindered by scepticism and perceived high prices. IoT-in-the-home products range from smart TVs and wireless speakers to connected kettles and smart lighting systems.

“It is clear from our research that we will see a gradual uptake in IoT devices for the home – not overnight adoption,” said Ben Perkins, Deloitte head of consumer research. “Consumers are more aware of IoT’s potential than many in the industry might expect, but scepticism remains around the functionality and price of the technology.”

The report, which surveyed more than 2,000 UK consumers, found that half (52%) of consumers currently own a connected home device, with a major portion of these devices being entertainment devices such as smart TVs and games consoles. The prevalence of connected appliances and other devices such as smart lighting systems is comparatively much lower. Additionally, more than two thirds (70%) of consumers are not willing to purchase an IoT product in the next 12 months, revealing the scale of the challenge for brands and retailers.

Two-thirds (66%) of respondents argue that IoT devices can improve their lives, with the figure rising to 91% amongst 18 to 24-year-olds. 37% of those aged above 65 also believe that such devices could make their lives better, showing that the elderly are also aware of the technology’s benefits. However, consumers listed a number of barriers preventing a purchase, with half (48%) mentioning high prices as the biggest factor. A quarter (26%) of those polled said that the technology is not ready yet and a fifth (21%) will only consider purchasing connected products when they need to replace current devices.

“One of the biggest drivers for adoption will be the replacement cycle,” said Perkins. “The majority of new TV models are now ‘smart-ready’ and we will continue to see other home devices offer connected features as standard.

“As consumers replace their old kettles, ovens, fridges and lighting in the coming years, we will see a gradual escalation of IoT adoption. Through clever marketing and in-store demonstrations, retailers may be able to speed up the replacement cycle,” he added.

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