Press Releases

Millennials are on the road to building smarter homes. According to The NPD Group Connected Intelligence Home Automation Advisory Service, Millennials are twice as likely as the total population to have a smart home product installed in their residence.

The array of smart home products evaluated include network connected security and monitoring devices, sensors, system controllers, smart lighting, power, and appliances. One-in-four Millennials (23 percent) already installed at least one of these products in their homes, compared to 12 percent of the total population. Millennials will continue to drive the growth in this market as four-in-ten (41 percent) of this age group are already aware of and interested in owning smart home products.

A key factor that is driving this early growth is that the smart home market is no longer just for home owners. Renters are as likely as home owners to have smart home products installed, and are three times more likely to be part of the millennial age group.  More than a third of renters are between the ages of 18-34.

“Today’s smart home products no longer require professional installation and ongoing subscriptions, many are now plug-and-play options,” said John Buffone, executive director, Connected Intelligence.  “The product mix such as smart cameras, lights, and plugs, fits the lifestyle of both home owners and renters which opens up a larger, younger and more tech-savvy consumer market.”

“The mix of home automation products and services, their ease of use, and affordability makes some form of integration a reality for the majority of U.S. consumers,” said Buffone.  “The single biggest hurdle to further adoption is educating consumers on the wide array of new smart home products and services that are rapidly becoming available.”

Methodology

The results are based on an online survey conducted in March 2015 to a sample of 5,559 individuals that indicated they were the head of their household.  All data is reflective of the U.S. Internet homes.

By the end of 2014, there were 18.3 million actively connected tablets in the U.S., a 90 percent increase from 2013, according to The NPD Group Connected Intelligence Mobile Broadband Market Share and Forecast Report.  Aggressive promotions that heavily discounted or gave away tablets, carrier subsidies, and simplified service plans helped add more than 8.7 million new cellular tablet customers last year.

Over the next couple of years, however, the growth in active cellular tablet subscriptions is expected to slow down.  According to the report, the tablet activation growth will slow down to 30 percent in 2015 and then to 10 percent in 2016, compared to the 90 percent growth in 2014. However, cellular connected tablets will still continue to be an important factor in boosting active connection base for U.S. wireless carriers.

“One of the major reasons we expect to see the cellular tablet connection growth slow down over the next couple of years is the cannibalization by larger smartphone screens,” said Brad Akyuz, Director, Connected Intelligence. “As demand for smartphones boasting a large (5.0-inch plus) screen continue to increase, the value proposition of the tablet serving as a second screen diminishes. The new growth opportunities for the carriers will be in the wearables space as cellular embedded wearable devices are poised to be widely available by the end of 2016.”

METHODOLOGY

The Mobile Broadband Market Share and Forecast Report is published quarterly and uses a mix of various proprietary sources including NPD’s consumer panel and point-of-sale data, as well as public sources such as U.S. wireless carrier financial and operational KPI data to size the U.S. mobile broadband market by device type, carrier and revenue.

 

Smartwatch ownership in the U.S. is forecast to reach 9 percent of the U.S. adult population by 2016, closing in on activity trackers.  According to The NPD Group Connected Intelligence Wearables Forecast, as smartwatch penetration grows, activity tracker penetration will begin to plateau.   By the end of 2016 activity tracker ownership will have peaked at 32 million after growing significantly for four years. 

“The smartwatch will clearly begin to take a bite out of the activity tracker market moving forward,” said Eddie Hold, vice president, Connected Intelligence. “The fact that the health and fitness apps on smartwatches are a key marketing focus will help draw consumers away from the simpler trackers.”

The activity tracker, however, is not just under threat from the smartwatch but actually from itself as well. Counting the number of steps taken on a daily basis is only a small part of the activity trackers’ appeal, therefore limiting the addressable market size for these devices. In fact, 40 percent of activity tracker owners stop using the device within six months.

“The good news for activity trackers is that we are seeing a clear opportunity at the more sports-focused end of the landscape,” continues Hold. “There is demand for a more sophisticated class of activity tracker that supports GPS and heart rate monitoring, while also being a little more rugged and waterproof. And while we see the simpler fitness trackers potentially hitting a wall, these advanced devices will continue to drive adoption.”

But more than simply devices, both the smartwatch and the activity tracker markets will be defined by the available apps over the coming year. Third party activity apps will be key to both the growth of the sport-related activity tracker market, and to the long-term stickiness of the smartwatch use.

“While all of these new products will definitely help drive demand, the real test will be the apps for the smartwatches,” said Hold. “There will definitely be a demand for these devices and the use-case will follow, but smartwatch manufacturers and app developers need to make these products become ‘need to haves’ rather than ‘nice to haves’.”

Methodology

Connected Intelligence Wearables Forecast

Five thousand U.S. consumers, aged 18+ responded to an online survey in Q1.  The consumers reported their awareness of, ownership of, and intent to own wearable devices.  In addition, several questions in the report were fielded using Civic Science. Civic Science provides the leading intelligent polling and real-time insights platform, partnering with hundreds of premier websites to survey millions of people daily. Its proprietary technology rapidly analyzes consumer opinions, discovers real-time trends, and accurately predicts market outcomes. This service is used to examine consumer attitudes towards activity trackers and smart watches, as well as emerging wearable technology.

Millennial men aged 18-34 are the most aware and interested in subscribing directly to TV channel apps. These apps allow viewers to subscribe directly to a TV network without also requiring a subscription to a cable or satellite channel bundle.

According to The NPD Group Connected Intelligence Great Unbundling of Pay TV Report, 62 percent of men 18-34 years old are aware of the currently available or announced over-the-top TV Network apps. Of those 18-34 year old males who are aware, 60 percent are extremely or very interested in direct subscriptions to one or more of those apps. The awareness and interest among this important viewer segment is significantly higher than the general population.

“Millennials’ viewing habits differ from prior generations. While many will continue to subscribe to cable and satellite TV, the growing popularity of streaming services is undeniable,” said John Buffone, executive director, Connected Intelligence. ”Un-authenticated network apps offer a new way to encourage younger viewers to tune-in. This increases networks’ audience reach and offers operators an opportunity to bundle attractive TV channels with their broadband services.”

These network apps, however, need to be affordable, reliable, and easy to use.  Among Millennial men who are at least somewhat likely to subscribe to a TV Network app outside of their pay TV subscription, cost is cited as two of the top three deciding factors.  These apps also need to be easy to use and have a full array of content for viewing.

“As more networks launch un-authenticated apps, viewer’s time spent watching TV will include more streaming hours,” added Buffone. “Viewers’ interested in network apps are cost-conscious and content hungry which will make it challenging to find the optimal balance between affordable rates and delivery of premium content and in-app features. Ultimately, distribution through un-authenticated networks apps is a positive step towards keeping Millennials plugged into prime time content.”

Methodology

Great Unbundling of Pay TV Report

2,888 U.S. consumers age 18 and older were surveyed in January 2015.  Qualified survey respondents indicated they make or influence household decisions around TV subscriptions. Awareness reporting is based on those that indicated knowing that WWE, HBO, Showtime, or CBS have begun to offer (or have announced plans to offer) direct subscriptions to their programming without requiring a pay TV subscription from a cable or satellite provider.

The NPD Group announced today the launch of its new home automation point- of-sale (POS) data and advisory service. The service comprises consumer panel-based reporting, qualitative reports, U.S. point-of-sale data, and unique analysis from NPD’s leading industry experts to provide a comprehensive view of this rapidly emerging market. 

The new home automation reports from NPD Connected Intelligence include a view of the device landscape and consumer adoption and use of these home automation devices.  NPD’s POS data will track home automation security and monitoring, system controllers, and smart lighting – with additional categories being added later this year.

“The home automation market is rapidly expanding and NPD is uniquely positioned to help our clients navigate the market with our point-of-sale and consumer data,” said Ian Hamilton, president, NPD Technology. “Our data helps them to understand the size and growth of key segments and identify early barriers to adoption and how to overcome them.”

“The home automation market is being bolstered by growth in mobile devices, do-it-yourself plug and play devices, and low-cost barrier to entry solutions,” said Eddie Hold, vice president, NPD Connected Intelligence. “NPD’s new POS and advisory service is a suite of business solutions that enables our clients to make informed decisions about growth opportunities and profitability while understanding the consumer and their motivations for purchase.”

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of adoption are leveraged to view consumer adoption and use of home-based devices, mobile devices and the emerging wearable technology world to provide a comprehensive view of the competitive landscape, how it will evolve and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides market information and business solutions that drive better decision-making and better results.  The world’s leading brands rely on us to help them get the right products in the right places for the right people.  Practice areas include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games. For more information, visit npd.com and npdgroupblog.com. Follow us on Twitter: @npdtech and @npdgroup.

Connected TVs edged out Blu-ray Disc players to become the third most prominently owned device that delivers apps to TVs in the U.S.

According to The NPD Group Connected Intelligence Connected Home Report, as of the fourth quarter of 2014 there were 22 million connected TVs installed and accessing the Internet, a significant increase from 13 million one year ago. Ownership of Internet connected TVs is now more common than Internet connected Blu-ray Disc players, of which U.S. consumers own 20 million.  Video game consoles and streaming media players, however, are still the most used TV app platforms and rank number one and number two respectively.

Consumers’ transition from disc to digital is impacting adoption of Blu-ray Disc players and along with it their value as a digital distribution platform. This shift in ranking makes TVs a more popular digital distribution platform than Blu-ray Disc Players, although often these devices are built by the same company.

 

The proliferation of connected TVs will be positive for viewers and digital content distributors alike as access to streaming programming will reach more homes and more of the TVs in each home. By 2017, there will be 47 million connected TVs within 30 million U.S. Internet homes delivering content through apps, according to the Connected Intelligence Connected Home Forecast Report.  Increased sales, connectivity, and usage trends led the TV to become a more prominent connected device ahead of forecast.

 

“Going forward the key to success for connected TV and attached content device manufacturers will be the availability of apps from top TV networks,” said John Buffone, executive director, Connected Intelligence.   “This aspect of the app marketplace will become even more critical during 2015 as HBO and Showtime follow CBS and become available without a cable or satellite pay TV subscription."

Methodology

Connected Home Report

More than 5,000 U.S. consumers, age 18 and older were surveyed through the fourth quarter of 2014. The number of installed and internet connected devices includes those that deliver broadband applications and must actually be connected to the Internet.  Connected TV and streaming media player ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

Connected Home Forecast Report

The Connected Home forecast is based on NPDs quarterly Connected Home surveys conducted among more than 5,000 U.S. consumers, age 18 and older.  Using the NPD Consumer and Retail Tracking services, historical installed base reporting is mapped to sales trends for each device category. Coupled with internet connection rates, these data are used to project a view of the connectable and connected device installed base. 

As of the fourth quarter of 2014, there were 116 million tablets in use among U.S. consumers. Nearly 16 million of these tablets were actively using a cellular data plan, an increase of 95 percent over the past year.  According to the NPD Connected Intelligence Connected Home Report, cellular activations are more common among more educated and more affluent consumers. 

Tablet owners who connect through cellular data plans possess a very different demographic profile than their Wi-Fi tablet using counterparts.  Among the characteristics, income is the most prominent.  Cellular tablet owners have an average household income of $105,000 versus Wi-Fi tablet owners whose average annual income is $17,000 less.

“Cellular-embedded tablet use is growing rapidly, however, for it to become a mass market product mobile carriers need to appeal to a mass market audience,” said John Buffone, executive director, Connected Intelligence. “While 2014 marked the year consumers activated cellular enabled tablets, 2015 must become the year this technology reaches a broader demographic audience. Access to Wi-Fi at home and work is the primary barrier to adoption, so messaging from carriers must emphasize on-the-go activities. In particular, navigation, email, and posting photos and videos are the primary activities used more frequently when consumers connect their tablet to a data plan.”

Methodology

Connected Home Report

More than 5,000 U.S. consumers, age 18 and older were surveyed in the fourth quarter of 2014.  Tablet ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

Streaming Media Player Penetration to Reach 40 Percent of U.S. Internet Homes by 2017, According to NPD

Increased Penetration Boosts Streaming Video Service Usage

PORT WASHINGTON, NEW YORK, JANUARY 26, 2015 – By Q1 2017, 40 percent of U.S. Internet homes will have a streaming media player, bringing the total number of homes with these devices to 39 million, according to the new NPD Connected Intelligence Connected Home Forecast.  At the beginning of 2014 (Q1) only 16 percent of U.S. Internet homes had a streaming media player. Ownership is on track to climb to nearly one-quarter of homes, 24 percent, by Q1 2015 when consumers report device ownership that takes into account their holiday purchases.

In its infancy, the streaming media player market was driven by growth from Apple and Roku, but over the past year and a half Amazon and Google have made a significant impact. In addition to streaming media players, TVs, video game consoles, and Blu-ray Disc players also deliver apps to viewer’s TVs.  Among these four device platforms, streaming media players are forecast to contribute the most growth, and TVs the second most growth, in installed and Internet connected TV devices over the next two years. This will drive the total number devices delivering apps to TVs up to 211 million by Q1 2017.

Not surprisingly, the increase in streaming media players helped boost the use of streaming video services.  According to the Connected Intelligence Application and Convergence report, usage of Amazon’s Prime Instant Video service saw the greatest percentage point increase, and all of the top five video services benefited from the growing streaming media device market.

 

Q4 2014: Top 5 Video Apps Used on TVs by Streaming Media Player Owners

 

 

  1. Netflix
  2. YouTube
  3. Amazon Prime & Instant Video
  4. Hulu Plus
  5. HBOGO

 

Source: The NPD Group/Connected Intelligence Q4 Application and Convergence Report

Ranking based on % of streaming media player users that report using the video service

If individual owns multiple connected TV devices usage may be sourced from either or both devices

 

“The rapidly growing streaming media player market, coupled with rising ownership of smart TVs and the new generation of game consoles is resulting in significantly more homes getting access to apps such as Amazon Prime Instant Video and HBOGO,” said John Buffone, executive director, Connected Intelligence. “Over the coming years we will continue to see a growing audience of TV viewers for streaming video services, authenticated network apps, and offerings such as CBS All Access that no longer require a pay TV subscription from a cable or satellite provider.”

Methodology

Connected Home Forecast Methodology

The Connected Home forecast is based on NPDs quarterly Connected Home surveys conducted among more than 5,000 U.S. consumers, age 18 and older.  Using the NPD Consumer and Retail Tracking services, historical installed base reporting is mapped to sales trends for each device category. Coupled with internet connection rates, these data are used to project a view of the connectable and connected device installed base.

Application & Convergence Report Methodology

In Q4 2014, more than 5,000 U.S. consumers, aged 18-years or older took part in this online survey which asked questions about their usage of computers, smartphones, tablets, and connected TVs.

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

Las Vegas, Nevada, January 6, 2015 – Age, income, and gender vary greatly among fitness tracker and smartwatch owners, according to the new NPD Connected Intelligence Consumers and Wearables Report.

Fitness trackers, which have a strong presence in the wearables market, have gained a large mainstream following.  According to the report 36 percent of fitness tracker owners in the US are 35-54 years old, 41 percent had an average income of more than $100,000, and 54 percent were women. One-in-ten U.S. adults now own a fitness tracker.

Smartwatches haven’t caught on as quickly, with only two percent penetration, and appeal to a much different segment of the market.  More than two-thirds (69 percent) of smartwatch owners are 18-34 years old, skew mostly towards the male population (71 percent) and nearly half (48 percent) had an income below $45,000.

“There is no ‘average’ consumer for the wearables market; the fitness tracker and smartwatch target consumer are fundamentally different,” said Wes Henderek, director NPD Connected Intelligence. “While we expect smartwatch ownership to grow more rapidly over the next year, there will remain a clear place for the fitness tracker due to its size, battery life, and focus on one specific use case - as opposed to the smartwatch which is trying to be a little bit of everything for everyone.”

 

METHODOLOGY

The Consumers and Wearables report is delivered twice a year as part of the Connected Intelligence WEAR practice. The report is based on a survey of 5,000 U.S. consumers, age 18 and older that was completed in December 2014. This information was then calibrated against life-to-date unit sales of wearable devices from the NPD Retail Tracking Service, as well as Civic Science results relating to wearable device ownership.

 

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of adoption are leveraged to view consumer adoption and use of home-based devices, mobile devices and the emerging wearable technology world to provide a comprehensive view of the competitive landscape, how it will evolve and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 

Access to nearly all top TV and Streaming Video Apps is Driving Video Usage

PORT WASHINGTON, NEW YORK, DECEMBER 8, 2014 – Tablet ownership among U.S. consumers is on the rise, and growing at a faster rate than that of any other connected device.  According to The NPD Group’s Connected Intelligence, Connected Home Report, as of the third quarter of 2014 (Q3 2014) there were 109 million tablets in use, up 35 million from last year.   

“Now that the tablet market is unmistakably past the early adopter stage we are able to gain visibility into what the user base is still doing with their devices, and in this case it’s often video focused activities,” said John Buffone, executive director, Connected Intelligence.

More than half, 55 percent, of tablet users report leveraging a video feature of their device.  This includes video calling; taking, posting, and uploading videos; as well as watching video from a streaming service or app from a TV channel or pay TV provider. Video feature usage is even more prominent among younger consumers.  Two-thirds (67 percent) of tablet users aged 18-34 use these video features compared to 53 percent of 35-54 year olds, and 45 percent of users age 55 and older. Further, watching video from a streaming service or TV channel app is the most common video focused behavior.

Through tablets, consumers have access to nearly every top TV and streaming video app and this is contributing to utilizing tablets as a TV. According to the new Connected Intelligence TV & Video App Availability Report, 66 of the 70 TV and streaming video apps evaluated are available on tablets. iPads have the most (66), followed by Android tablets (60), Kindle Fire (43) and Windows tablets (32).

 “Consumers are demonstrating their willingness to spend time using tablets for a broad set of video features, including their vast library of TV and streaming video apps,” noted Buffone. “This provides an opportunity for mobile carriers to promote features such as on-the-go video calling, TV viewing and ability to socialize videos as a reason to attach a tablet to their data plan. Promoting these popular activities could help perpetuate the significant growth in tablet data plan connections already experienced this year.”

 

Methodology

Connected Home Report

Nearly 5,000 U.S. consumers, age 18 and older were surveyed in the third quarter of 2014.  Tablet ownership survey results were calibrated to life-to-date unit sales from the NPD Retail Tracking Service.

TV & Video App Availability Report

An extensive search was completed to confirm availability of each app on each device. This included a review of each device, its website, review of each streaming service or TV channel website, and as needed, communication with device manufacturers to confirm app availability on their platform(s). The reported app availability data is current as of the end of October 2014.

About Connected Intelligence

Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com. Follow Connected Intelligence on Twitter: @npdci.

About The NPD Group, Inc.

The NPD Group provides global information and advisory services to drive better business decisions.  By combining unique data assets with unmatched industry expertise, we help our clients track their markets, understand consumers, and drive profitable growth.  Sectors covered include automotive, beauty, consumer electronics, entertainment, fashion, food / foodservice, home, luxury, mobile, office supplies, sports, technology, toys, and video games.  For more information, visit www.npd.com and npdgroupblog.com.  Follow us on Twitter: @npdtech and @npdgroup.

 

CONTACT:

Sarah Bogaty
+1 516 625 2357
sarah.bogaty@npd.com

 


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