As the home automation industry continues to grow, it’s important to understand who the target market for it is. Who wants a “smart home”? Who is ready and willing to buy home automation products? And why?
If you’re in the home automation business or are planning to get into it, these are questions you will need to answer for your local market.
In this article, we’ll discuss the target market for home automation and look at who’s most likely to purchase such systems.
We’ll also review what motivates people to connect different objects in their home into a home internet system and what benefits they expect to get out of it.
Who is the Target Market for Home Automation?
To best understand the target market for home automation, we need to first study the reasons why someone decides to connect devices and objects in their home into an automated system.
By understanding people’s motivations for needing home automation, we can divide this market into customer segments and study each segment on its own.
This needs-based segmentation allows home automation businesses to create products and services, as well as marketing strategies, specifically designed for each segment.
Here are the main customer segments of the target market for home automation:
- People looking for ways to save time
- People looking for ways to save money
- People who want more convenience
- People who want more security
- People who want to be eco-friendly
- People who like tech in every part of their lives
- People who like to be connected
Let’s look closely at each of these market segments.
1. People looking for ways to save time
Automating different parts of the home can be a big time-saver, making this segment one of the most important ones in the target market for home automation systems.
For example, the average family with small kids spends about two hours a day doing laundry.
But with a connected washing machine that can be controlled remotely, people can start and stop the cycle whenever they want, even while they’re at work or running errands.
This means that people who are always short on time would be willing to purchase a home automation system if it meant they could save even just an hour or two every day.
2. People looking for ways to save money
Another motivation for people to invest in home automation is the potential to save money.
For instance, they can program their thermostat to lower the temperature at night or when the house is empty during the day, which can lead to lower energy bills.
Similarly, a smart sprinkler system can help people save water by only watering the lawn when it needs to be watered and not a moment before.
3. People who want more convenience
In addition to time-saving and money-saving benefits, people are also motivated by the convenience that home automation systems can offer.
For example, imagine never having to worry about whether you locked the front door when you left the house because you could do it remotely with your smartphone.
Or what if the fridge could tell you when you’re running out of milk and automatically order more from the grocery store?
The convenience that home automation offers is one of the main reasons why this customer segment is so important to businesses that sell home automation systems and services.
4. People who want more security
Home security is often the killer feature of home automation systems because it is the easiest one to sell to homeowners. After all, who says no to a more secure home?
Examples of security features include a connected doorbell that can allow people to see who’s at the door without having to get up or a connected security camera that can give people the peace of mind of being able to check in on their home while they’re away.
Other examples include using sensors on appliances to detect when they’ve been left on and sending people alerts or shutting them off automatically to prevent fires.
Similarly, sensors on windows and doors can detect when they’ve been left open and close them automatically or send alerts to the homeowner.
In addition, many home automation systems now come with the ability to connect to a professional monitoring service that will alert the authorities in case of an emergency, making this a customer segment to whom home automation companies can upsell additional services.
5. People who want to be eco-friendly
An increasing number of people are looking for ways to be more eco-friendly, and home automation systems offer one way to do just that.
As we’ve seen earlier, when people use smart thermostats to save energy, they not only lower their energy bill but also help save the environment. The same goes with smart sprinkler systems which optimize the use of water.
Home automation can also include programmable LED lights that can be automatically dimmed at certain times of the day or switched off when there is no one in the room.
6. People who like tech in every part of their lives
This segment of the target market for home automation includes people who are tech-savvy and like to have the latest and greatest gadgets in every part of their lives.
For these people, the idea of a connected home is very appealing because it allows them to be at the forefront of the technology curve.
They are also the type of people who are more likely to be early adopters of new technology, and when they are happy with it can be a great source of word-of-mouth marketing.
7. People who like to be connected
The final segment of the target market for home automation includes people who need to be connected to everything they own at all times.
Such people like to keep tabs on their homes even when they’re away and appreciate the peace of mind that comes with being able to do so.
These people will have every imaginable app on their smartphones for tracking everything from the weather to the stock market and will want their home automation system to be integrated with all of them.
The target market for home automation includes people who like to live with all the benefits that come from the latest technology.
Some of these people look at home automation as a way to save time from daily chores. Others see it as a way to save money or just make everything more convenient.
For many people, home automation is synonymous with home security and this is the over-arching reason for installing a home automation system.
Some parts of this market, see home automation as a way to better use devices and save energy. This not only lowers energy bills but also helps the environment, which can be a big driver for many.
And finally, many people opt for home automation simply because they like to be connected at all times and always remain on the cutting edge of all the latest technologies.