The consumer IoT landscape is rapidly evolving. For CE device manufacturers, this brings along a host of challenges and enormous potential. 

 

To break through the noise and deliver quality IoT solutions that meet consumer needs, it’s critical to understand the IoT landscape, its impact on consumer behavior today, and where the industry is headed. Otherwise, cost pressures and teams lacking in-house IoT expertise will hit roadblocks that may prevent them from ever reaching the market. 

 

Here are 10 IoT statistics every device manufacturer should know as they look to deliver compelling and innovative connected experiences: 

 

IoT is growing quickly in adoption 

•  29 billion IoT devices could exist globally by 2030
  By 2030, Statista research predicts 29 billion IoT devices will exist around the world – that’s roughly 3.5x the current world population. For comparison, 9.7 billion devices existed in 2020.
  
  
  

• The consumer IoT market is expected to top $191 billion in 2028
  The rise of connected devices and the smart home isn’t a fad – it’s here to stay, especially the consumer segment. Mordor Intelligence forecasts the consumer IoT market will grow from $128.97 billion in 2023 to $191 billion by 2028.
  
  
• 1.23 billion smart home devices will be shipped in 2027
  Global shipments of smart home devices totaled roughly 871 million units in 2022 according to IDC. By 2027, that number is expected to grow to 1.23 billion smart home devices as IDC projects the market to continue its upward trend post-pandemic.

Consumers realize the value of leveraging smart home automation for real use cases 

• 77% of U.S consumers own entertainment-related devices including Bluetooth speakers, smart TVs, and streaming devices
  While this finding from a Statista survey represents the largest category, other areas of smart home implementation include: safety/security (34%), electricity/lighting (33%), smart appliances (29%), energy management (27%), smart speakers with integrated virtual assistants (26%). These categories present numerous entry points for device manufacturers to impact the smart home market.
  
  

•  84% of users didn’t monitor for water before using Notion
  Do IoT devices and security systems have the power to change consumer behavior? Yes, and it’s already happening!

  One example is the Notion smart home monitoring system which uses smart sensors to detect things like water leaks, mold growth risk, sounding alarms and more. Of Notion users across the country, 84% didn’t monitor water before installing their sensors. That means they weren’t proactively monitoring for leaks and pooling water that, if not detected early, could lead to costly insurance claims, repairs and disruption to daily life. 

 

App proliferation and data privacy will continue to be important for consumers  

 

• 28% of U.S. internet households have three or more smart home devices
  Just how big is the potential for consumer IoT here in the U.S.? Parks Associates research found that 28% of U.S. internet households now have three or more smart home devices showcasing a massive untapped potential for device manufacturers. 

 

• The average U.S. household contains 22 connected devices
  Ranging from smart refrigerators to TVs, speakers, home monitoring systems, and more, a Deloitte survey found that the average U.S. home now contains 22 connected devices. This illustrates that consumers continue turning to connected devices across various aspects of their daily lives. 
  
  

• Nearly a third of consumers surveyed with 20+ connected devices in their home feel overwhelmed by the devices and subscriptions they manage
  Deloitte’s survey also found that 31% of U.S. consumers with 20 or more connected devices in their homes feel overwhelmed by those devices and the subscriptions they must manage. This reflects the feeling by many consumers today that their connected devices should be easy to use and manage, not another chore. 

 

• 24% of consumers missing out on true smart home experience due to app overload
  In late 2023, Pepper surveyed more than 1000 consumers and found that device owners average three separate apps to control their devices. Additionally, 24% of consumers say they don’t have a true smart home because their apps are separate. App overload remains a major barrier as device manufacturers look to deliver a seamlessly integrated smart home experience. 

 

• A home filled with smart devices could face 12,000+ hacking attacks in a single week
  In the race to market, security cannot be an afterthought. A study conducted by Which? found that a smart home could be exposed to more than 12,000 hacking or unknown scanning attacks every week, reinforcing the need to find a secure IoT platform to power consumer devices. 

 

Unlock Consumer Potential with an IoT Platform-as-a-Service (PaaS) Solution 

With these IoT statistics, it’s easy to see the consumer IoT market’s potential. What’s not so easy is delivering both a quality product and an easy-to-use consumer experience and app. Even a great device will fall flat if the platform powering it is slow, unreliable, unsecure, and not user-friendly. 

The trouble is, without the right expertise in-house, developing IoT applications can quickly blow budgets and delay time to market. That’s where an IoT Platform-as-a-Service (PaaS) makes the difference. Partnering with an IoT PaaS provides device manufacturers with rapid time-to-market, cost efficiency and scalability, and an easy-to-use app that can control multiple devices in one place. Not to mention added peace of mind when it comes to data handling and security. 

Ready to let your teams focus on creating innovative products that will differentiate you from the competition? Learn how partnering with Pepper and leveraging our PaaS can help deliver customized consumer experiences and capitalize on emerging market opportunities.