Smart home penetration up 5% in 2015

Research from Parks Associates has found that 18 percent of US households with broadband Internet connection now have a smart home device, up from 13 percent in the second quarter of 2014. The group's Canada research arm also found that about 34 percent of Canada homes with security systems installed have smart systems that can be controlled and monitored through mobile devices. About a fifth of Canada homes with broadband also have a security system installed, according to the report.

Lack of familiarity with smart home technology and trust in a given retailer or seller can affect adoption rates. "Consumer familiarity with smart home products and services is low," said Tom Kerber, director of research at the Home Controls and Energy Group at Parks Associates. Kerber added that suppliers must teach consumers capabilities and advantages of smart home solutions.

Consumers also tend to be discerning when it comes to who is selling smart home products. National and local retailers come out on top with the most respondents saying they either trust or highly trust these sellers. Security dealers came in second with broadband service providers and online-only retailers following behind. Security dealers do well among those looking for surveillance and lock products. In the survey, 24 percent of respondents said they would prefer to buy from a security dealer if purchasing networked security cameras and 16 percent said the same if they were purchasing smart door locks.

Parks Associates presents its information as a percentage of homes with broadband because high-speed Internet connections can be critical to smooth operation of ‘connected’ devices. In fact, the FCC acknowledged the need for speed this year by changing the standard of broadband to 25Mbps for downloads and 4Mbps for uploads. By this definition, 55 million people, or 17 percent of the population, do not have access to broadband. However, only 8 percent of urban populations lack such access, making cities still the best place to sell devices dependent on stable Internet connections.