Amazon Echo, Google Home Creating Smart Homes

Devices drive accessory sales, with mostly self-installation and setup

Consumer Intelligence Research Partners, LLC (CIRP), today released analysis of the results from its research on home automation devices, including Amazon Echo from Amazon.com, Inc. (NASDAQ:AMZN) and Google Home from Google (NASDAQ: GOOG), for owners of devices as June 30, 2017.

Among these owners, 69% report owning at least one type of “smart” accessory, which can be monitored and controlled using an Amazon Echo or Google Home device. Ownership ranges from 24% of Amazon Echo and Google Home owners having a smart home security system, to 9% having a connected smoke detector, door bell, or garage door opener (Chart 1).

Chart 1: Smart accessory ownership

Chart 1: Smart accessory ownership

Though listening to music and answering questions are still the most prevalent uses, Amazon Echo and Google Home owners are starting to us the devices as hubs for smart, connected homes. After only a couple of years in the development of the market for these devices, owners are increasingly attaching new accessories, such as thermostats, appliances, lighting, and home security, to their smart home networks.

The growth in smart home devices has promoted the connected accessory market. In home lighting, more than 70% of Amazon Echo and Google Home owners with smart lighting in their home, report purchasing the system after owning an Echo or Home device. Over 80% of smart thermostat users reported installing and setting up their connected accessories themselves. Over 70% of smart door lock and smoke detector systems report using Echo or Home to control the system.

Chart 2: Smart home accessory use, purchasing, and installation

Chart 2: Smart home accessory use, purchasing, and installation

Owners now use Echo and Home as a way to create a smart home, often buying accessories after gaining experience with Echo or Home. Well over half of owners bought many of these accessories, including lighting, security cameras, door locks, and doorbells, after buying the Echo or Home. Better yet, the hurdles for adding of these smart home devices are very low, as two-thirds or more of Echo and Home owners install many of these systems themselves, without a contractor or installer. Finally, as many as three-quarters of owners use an Echo or Home to control these accessories, even though many of these systems have dedicated apps or interfaces.

CIRP bases its findings on its survey of 300 US owners of Amazon Echo or Google Home, surveyed from July 11-27, 2017, who owned one of these devices as of June 30, 2017. For additional information, please contact CIRP.