LONDON-based bespoke audio & visual specialist Robert Tausigg doesn’t look surprised as we sift through the latest market insight reports for Smart Home Adoption.
Given the scale of the growth in the sector since 2017 and the fact that more than half of households in the UK will feature smart home technology and entertainment by 2027, you’d expect perhaps a hint of a smile at the very least.
But Robert has been in this game for quite a long time, since 1975 in fact.
Back then (younger readers may find this hard to believe), you used to have to stand up from the sofa, walk to the black and white TV and change one of only three terrestrial channels using your thumb and forefinger. Times have certainly changed for the better.
According to experts at Statista, 2023 will see the number of smart homes in the United Kingdom increase from 4.4 million in 2022 to 5.7 million, reflecting an annual growth rate of 30%.
“There’s a couple of reasons for the boom in recent years.” says Robert, “Firstly, I think we’re culturally shifting to being much more ethically minded in the UK; we’re aware now more than ever of the impact of Climate Change, for instance. But there are also practical reasons for the growth; smart homes can save you money, and because people have less money to spend during the cost of living crisis, they’re choosing to spend what they have on entertainment.”
This shift to being able to change a home’s temperature, appliances and electronics from your tablet or smartphone is as much consumer led as it is technologically driven.
Robert added: “When I first started selling audio systems back in 1975, people would spend on sin products like alcohol or cigarettes when money was tight or there was a recession.
“Buyers today are more health conscious, more ethically minded, preferring instead to spend money on comfort and entertainment. The technology makes it easier, but the consumer demand is clearly not waning.”
The smart home adoption boom began in the UK in 2017 when it stood at just 1.3 million. By 2022, a total of 4.4 million homes had adopted smart technology – around 15% of UK households.
Expectations of sustained growth underscore the UK’s evolving market dynamics. By 2024, the smart home count is forecasted to reach 7.2 million, corresponding to a 24.4% market penetration. By 2027, this figure is set to soar to 15.1 million smart homes, achieving an impressive 50.2% market presence.
I think it’s going to be much higher”, says Robert, “You have to factor in the growth in Virtual Reality and the resulting demand for new smart home technologies and entertainment that will logically fall out of those developments.”
He adds: “Without doubt there will be a further boom as VR takes a stronger hold on UK households, part two of the Smart Home revolution is on the way!”
The UK smart home entertainment market already holds a significant position in the industry landscape. It is expected to generate £814 million in annual revenue by 2023, ranking it just behind the United States and China, the two largest markets in the world.