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The Increasingly Connected Canadian Home

3 minute read | November 2016

Editor’s note: The data in the infographic has been updated to reflect the total number of Canadian adults, as opposed to a smaller base of Canadian adults who have heard of at least one connected home technology.

“Smart” technologies—including televisions, refrigerators, home security systems and more—can be found in different rooms in homes today. Still, the connected home market is in its infancy, with only 28% of consumers currently owning connected home devices. In the next two years, however, 46% of Canadian consumers will either own or say they plan to purchase connected home technologies, according to Nielsen’s Connected Home Report.

Interestingly, although consumers’ appetite for gadgets that make home life easier is on the rise, not all Canadian consumers are aware of all the connected technologies available to them. While 73% of Canadians are familiar with at least one connected technology available to them, that number drops when looking at specific technologies. Only 58% of consumers are familiar with connected appliances, increasing to 59% for connected entertainment, 63% for home automation, and 66% are familiar with home security technologies.

To better understand Canadian consumers’ level of familiarity with connected home technologies, the report segmented consumers into four key categories:

  • Onlookers: Currently do not use any connected home technologies and have no intention to purchase within the next two years;
  • Pure Intenders: Currently do not use any connected home technologies but intend to purchase at least one within the next two years;
  • Dynamic Users: Currently use at least one connected home technologies and intend to purchase at least another one within the next two years; and
  • Static Users: Currently use at least one connected home technology but have no intention to purchase another one within the next two years.

Pure Intenders and Dynamic Users are decisive consumers for retailers and manufacturers of connected home technologies to reach in the short-term. Both segments intend to increase the amount of connected technologies in their households in the next two years.

While the majority of Canadian households are aware of connected home technologies, there are a number of barriers that Onlookers state are preventing them from making the leap to a connected home that retailers and manufactures must overcome. The biggest barrier is consumers who are satisfied with the current technology, followed by 52% who do not think they would use it enough and 45% who perceive the technology to be too expensive.

However, there is good news for those currently in the connected home technology business: 91% of consumers think that connected technology is a great deal and do not currently associate it with being overpriced. Of consumers who are interested in adding technologies, almost one-fifth are willing to pay a premium across the board of available technologies.

The connected home market is expanding everywhere and will continue to do so in the coming years. This means the opportunity for profit for both retailers and manufacturers should also continue to grow. While the onset of fully connected homes in Canada is still years away, the industry may be able to speed up adoption of available technologies by understanding consumers interests and proving the relevance and benefits of connected home technology.


The insights in this article were derived from the Connected Home: Canadian Market Trends Report. The Connected Home is an annual online syndicated study conducted in June and July 2016 in English and French by Nielsen Consumer Insights, Canada.

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