Able to perceive, measure and transmit data across an increasingly wide range of parameters and conditions, sensors and computing capacity are being installed across a widening range of household and consumer, as well as commercial and industrial, devices and equipment. Though in its infancy, the so-called “Internet of Things” (IoT) “is poised for massive growth in the next decade,” according to a new market research report from the Acquity Group, an e-commerce and digital marketing agency that is part of management consulting giant Accenture.
Surveying over 2,000 consumers, some 13 percent by the end of next year will own an in-home IoT device, such as a smart thermostat or home security camera, up from 4 percent at present, Acquity found. Sixty-nine percent of the 2,000 consumers across the U.S. surveyed plan to buy an in-home connected device in the next five years, according to “The Acquity Group 2014 State of the Internet of Things Study,” which is entitled, “The Internet of Things: The Future of Consumer Adoption.”
IoT Device Ownership
Use of wearable IoT devices, such as smart watches and fitness devices, will gradually increase in coming years as well. Nearly half of consumers already own or plan on buying a wearable IoT device in the next five years, according to Acquity, part of Accenture Interactive.
Wearable fitness devices will lead IoT consumer adoption over the next year. Twenty-two percent of survey participants stated they already own or intend to make a purchase by 2015.
While consumers are keen to find out how wearable tech can improve health and safety, they’re focused most “on how IoT products can provide integration to help them live more conveniently long term,” according to Acquity. That said, Acquity expects the following connected devices to be the most popular over the next few years:
- Wearable fitness devices (Expected to have 22 percent adoption by 2015; Expected to have 43 percent adoption in the next five years).
- Smart thermostats (13 percent projected adoption in the next year; 43 percent in the next five years).
- Connected security systems (11 percent adoption in the next year; 35 percent in the next five years).
On the other end of the scale, Acquity expects smart clothing and heads-up displays will see the lowest consumer adoption, with just three percent adoption projected in the next year and between 14 and 16 percent in the next five years.
Expanding from an initial base of early adopters to late adopters, by 2019 Acquity expects the following in terms of consumer IoT adoption:
- 92 percent of those who considered themselves mass consumers on the adoption curve and 78 percent of late adopters say they’ll purchase an in-home IoT device in the next five years;
- 45 percent of consumers and 26 percent of late adopters plan to purchase an in-home device in the next two years.
- 75 percent of consumers and 62 percent of late adopters say they’ll purchase a wearable device in the next five years;
- 42 percent of consumers and 24 percent of late adopters plan to purchase a wearable device in the next two years.
Commenting on the market research results, Acquity Group President Jay Dettling stated, “These digital devices present major opportunities for improving a brand’s customer experience for a range of consumers. Our data reveals that it’s not only tech enthusiasts who are interested in these kinds of products, but late adopters who also express interest in buying them.”
The full report is available for download free with registration on Acquity’s website.