Approximately 27 percent of all homeowners in the United States have already purchased at least one Internet of Things (IoT) device, a recent study conducted by home automation firm Wink found, as reported by ReadWrite. The company’s latest Smart Home Index report suggests that the adoption of IoT products and services in the country is on the rise, though it also indicates that many consumers are still reluctant to start committing money to this emerging segment as the initial costs of deploying a smart home system remain relatively high.

More than two-thirds of consumers are interested in the prospect of a smart home system as they’ve revealed a degree of interest in being able to monitor their homes remotely, the study found, noting that increased home security is one of the main reasons why consumers in the country are considering the idea of acquiring a smart home system. While the technology for automating homes is already widely available on the market, the costs of doing so are still rather steep, which is why many consumers still haven’t started investing into IoT products and services, with more than one-third of interviewees saying they’d initially have to commit $5,000 to implement a smart home system. Furthermore, almost every tenth interviewee said a smart home system would cost them $20,000 or more.

Regardless, the figures outlined above only refer to complete solutions, i.e. a combination of products and services that offer full home automation. In light of that fact, the valuations might not be completely realistic, though Wink speculates that the average consumer might not be interested in half-measures and doesn’t consider a semi-automated home to be particularly smart. That mindset will likely need to change if the IoT segment is to experience a significant increase in user adoption rates in the near future, with Wink claiming that even several relatively cheap devices can make one’s home significantly more secure and automated. While homeowners are the largest demographic interested in automated home solutions, a portion of renters would also be willing to invest in the same technology, with more than one-third of interviewed renters claiming they’d be willing to pay $750 more on an annual basis for their accommodations if they were provided access to IoT devices in their places of residence.

April 10, 2017 – Written By Dominik Bosnjak