Survey points to future market for high-tech ‘Smart Homes’ despite misgivings

15 November 2000

Four out of ten Britons could see themselves living in a ‘Smart Home’ ten years hence - a technologically advanced property where everything from the doors, windows and burglar alarm to the water temperature and toaster can be set by remote control. Interest in security features, such as the ability to check locks, lights and curtains while away from home, is especially strong.

But an investigation of the potential market, commissioned by the Joseph Rowntree Foundation (JRF), also suggests that two out of three consumers are worried by the possibility that the equipment might malfunction. Half are also afraid that an electronic system would be hard to override.

Younger people aged 15 to 34 are the age group most interested in the idea of living in a Smart Home, especially if they already own computers and electronic home entertainment systems. Notwithstanding the potential for push-button technology to enable those who are infirm or disabled to continue living in their own homes, older people are the least interested in having it available.

The study, carried out for JRF by the Consumers Association, is being launched today at a Smart Homes - UK conference, organised by the Department of Trade and Industry and BEAMAenergy Ltd and attended by Patricia Hewitt, Minister for Small Firms and E-Commerce. The survey of more than 1,000 adults found that:

  • Security and safety features of Smart Homes technology appealed to 70 per cent of consumers, followed by 59 per cent who saw benefits in having remote access to the equipment in their homes.
  • Forty-five per cent agreed with the statement ‘I am really interested in having the sort of functions a Smart Home could offer’ while 37 per cent disagreed. Sixty-five per cent expressed concerns about things going wrong in a Smart Home and 51 per cent were worried that the system would be too complicated.

The researchers also asked a small number of architects, contractors, developers and other industry experts for their views on the future demand for Smart Homes and whether the necessary equipment was likely to become available at affordable prices. Their response suggested that although there were few existing Smart Homes in the UK, there had been a modest recent increase in the number of properties using available technology.

However, there appeared to be a general lack of enthusiasm on the part of the construction and property industries, or manufacturers and suppliers for promoting the technology. Reasons given included a lack of common industry standards, an inappropriately skilled workforce and concerns that Smart Homes were ‘just a fad’.

Even so, the study concludes that changes on the horizon could stimulate greater interest. These include reduced prices as more Smart Homes are built in the United States, improvements in available technology and growing interest from the consumer electronics industry in adding domestic security and other devices to digital TV and other home entertainment systems.

Mark Pragnell, a co-author of the report and recently-appointed director of CEBR, an independent economics and business research consultancy, said: “There are good reasons to believe that mass consumer demand for Smart Homes technology could develop if the market grows and prices fall appropriately. There appears to be significant consumer interest that could be unlocked at the right price. But if a market does emerge it is less likely to come from impetus in the property sector than from the consumer electronics industry looking to extend its range of products.”

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