Smart Home Players Face COVID-19, Privacy Concerns & Price Challenges

New Parks Associates smart home research finds providers and manufacturers are increasingly competing on price, innovation and privacy protections. The firm’s Smart Home Tracker notes 44 percent of U.S. broadband households who do not own or intend to purchase a smart home device perceive the devices as too expensive, so as more manufacturers deploy low-cost products with advanced features, the market could start to overcome this barrier.

“The perception of high prices continues to be the leading inhibitor for smart home device purchases,” said Brad Russell, research director, connected home, Parks Associates. “Previously, companies would introduce an advanced model of their product to innovators and early adopters, and then maybe come down-market with a simpler, low-priced model, but as more product manufacturers enter the space, increased competition is driving industry players to integrate high-end features into their most affordable models. Consumers will start to see more value per dollar spent.”