The race to bring IoT or Internet-of-Things devices to consumer homes is a few years old now. Right now, it’s a plodding sort of race. Most people are familiar with the Nest home thermostat, then their smoke detector that has had its share of issues. There’s the rather fun but nowhere near essential Phillips Hue lightbulbs that you can change colours with from your smartphone. It is very early days for these connected devices. Yet adoption remains small market scale.
The Real Opportunity for IoT Devices In The Home
Where the real opportunity to build a beachhead market rests is with the 60+ market. And the competition is beginning to heat up for this market. There are several key factors why smarthome device markers would do well to target this market;
- Higher disposable income (on average) than “Millennials” (which are not really a logical market segment anyway.)
- They’re adopting smartphones and tablets quite happily and at scale.
- Smarthome devices can offer family connection security
Those aged 35 and under often don’t have significant disposable income, so smarthome devices remain a luxury more than a need. Products that fill needs always do better than those that fill a want. It’s a basic marketing principle that remains valid even in a digital age. Research by the PEW Centre shows how those 55+ are adopting smartphones and tablets as the image from The Economist shows below;
Smarthome devices that will likely underperform in the 60+ market are those with always-on cameras. An older generation finds cameras invasive and they take their privacy very seriously. Smarthome products that will likely succeed are those that use sound and spacial monitoring. One such device is HomeExcept, a very clever device that uses thermal sensing to monitor a home for patterns. If there’s one constant as we age it’s that we like our patterns, or daily routines if you will. The HomeExcept provides a mobile dashboard via a smartphone app that kids or care takers can monitor. It’s subtle and hangs out in the background and relies on the cellular network rather than potentially spotty WiFi. Clever. Such invisible devices are more likely to succeed with senior citizens.
Devices like the Amazon Echo could have applications built on them that leverage sound monitoring for similar patterns. The added benefit is that they can also be used for ordering need products like milk or detergent.
Positioned properly, smarthome devices for seniors stand to be an excellent entrance market for IoT device creators. Eventually we will see smart toilets that have built-in sensors to monitor blood sugars, hydration and perhaps other health conditions. If smartphone apps are tied to these devices it will force makers to develop very good UX or they will fail. Designing for seniors forces simplicity, which will translate well into other, younger market segments.
Smarthome creators would do well to look harder at the 60+ market, perhaps pivoting to this market for initial entry. There’s more money available than younger markets in both disposable income and healthcare for the 60+ market such as care homes. The population in the developed world is ageing. Done right, smarthome devices can solve a lot of problems. But developing the marketing message and positioning must be as carefully thought out as the UX and underlying technologies.
What do you think?