'Consumer demand for connected home devices is shrinking'

Devices see a year-on-year slowdown in growth
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Home automation devices are experiencing a drop in consumer demand, according to a new report.

According to analyst Argus Insights, smart home devices including thermostats, light bulbs and locks are all experiencing a year-on-year slowdown in growth.

Following a report, the analyst revealed that consumer interest in devices fell to a level 15 per cent below where it was 12 months ago.

Research regarding the Internet of Things (IoT) also suggests consumers are less interested in connected devices, while wearables dominate the research, mentioned 10 times more than the connected home.

John Feland, CEO and founder of Argus Insights, said: “Based on our review of consumer interest, the state of home automation in 2015 is not looking good for anyone who sells or makes these devices.

“Even though Google and Samsung made big purchases in this space by buying Nest thermostats, Dropcam and the suite of SmartThings products demand is stagnating.

“It is obvious that the early adopters have bought what they want and other consumers are expressing frustration that these products are complicated and difficult to set up and use.”

Argus Insights also revealed that consumers are unsure of what products they want and need, while first adopters have already made their purchase.

In other smart home news, Apple also recently revealed its first HomeKit accessories, featuring sensors, a lighting hub and smart plug.

Check out the next issue of PCR for a closer look at the market for smart home devices

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