Consumers have a price in mind for what they consider to be a good value for a smart home.
For most consumers, the minimum price seems to be about $20 a month.
Half (50%) of U.S. broadband households consider $20 or more a month for a comprehensive smart home service to be a good value, according to new research by Parks Associates. On the higher end, 7% say the service would be worth more than $50 monthly.
More than 26 million U.S. households own at least one smart home device, a 35% increase from the beginning of last year, according to Parks.
Another survey by PwC earlier this year found that one in four (26%) consumers own a smart home product with price being the most stated cause of hesitating to get a smart home device.
Yet another study, this one conducted globally by Gartner, found that 10% of households have a connected home solution, though 6% higher in the U.S.
There are smart home devices, which can be bought and set up by consumers, and then there are smart home systems, often installed and maintained by professional organizations.
The Parks study at least gives an idea of the price barriers for a complete smart home system.
Here’s what consumers see as an appropriate monthly fee as a good value:
Of course, the perception of what a comprehensive smart home service is can be somewhat subjective. At least now there is a ballpark of where – and how much -- recurring revenue may be found.