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Connected products are becoming a fixture of modern consumer life. From smart TVs and security cameras to voice-activated hubs and wearables, internet-enabled devices are reshaping how consumers interact with their homes. Yet even as the installed base grows, enthusiasm is tempered by persistent concerns about privacy, security and cost, according to results from a survey conducted by 451 Research by S&P Global.
The Take
Consumer interest in smart home technology is real but conditional. A majority of respondents own at least one connected device, and their willingness to buy more remains strong across several categories. However, the path to broader adoption runs squarely through three friction points: privacy concerns, security fears and up-front cost. These barriers surface repeatedly — whether consumers are explaining why they have not bought, what makes connected products less appealing, or why they are reluctant to commit to subscription fees. Vendors and retailers looking to expand the market will need to directly address these concerns, both in product design and in how they communicate value. At the same time, interest in emerging connected technologies — from household robots to home inventory systems — suggests that when price is removed from the equation, consumer curiosity is substantial.
Summary of findings
Connected device ownership is broad, with screens and cameras leading the way. The most widely owned connected home technologies are TVs and connected game consoles (45%), followed by cameras and motion sensors, such as video doorbells and baby monitors (29%), and speaker/hub devices, such as Amazon Echo and Google Home (28%). Wearables — smartwatches and fitness trackers — round out the top four at 26%. Roughly 22% of respondents say they do not use any internet-connected home technologies at all.
Most consumers’ attitudes toward connected products are stable, with a meaningful cohort warming up. When asked how their attitude toward connected products has changed in the past year, 54% of respondents say it has remained about the same. However, a notable share is moving in a positive direction: 15% say they are much more favorable and 21% say they are somewhat more favorable, suggesting that roughly one in three consumers has become more open to connected products in the past year. Just 10% have grown less favorable.
Energy savings and safety top the list of desired benefits. Consumers consistently prioritize practical, tangible outcomes. The most desired benefit is reducing energy use or costs (39%), closely followed by improving safety or security (39%) and improving comfort and quality of life (38%). Making everyday tasks more convenient or automated comes in at 34%, and allowing remote control of home systems rounds out the top five at 31%. Abstract benefits such as sustainability support (16%) or useful performance insights (20%) rank lower, suggesting that consumers respond more to concrete, immediate value propositions.
Interest in smart homes is split nearly evenly, with energy savings and safety as the key draws. Interest in living in a smart home is fairly divided: 22% are very interested, 28% somewhat interested, 25% neutral and 25% not very interested. Among those who find smart home technology appealing, energy savings (lower utility bills) is the top draw at 46%, followed closely by improved safety and security at 45%. Comfort and lifestyle enhancements (34%) and remote access and control (32%) also rank highly.
Privacy and security concerns are the top barriers — for buyers and non-buyers alike. Privacy concerns (e.g., personal usage data collected and stored, targeted ads) and security concerns (e.g., susceptibility to hacking) are the two most-cited factors that make connected products less appealing, each cited by approximately 45% of all respondents. Cost associated with products is close behind at 42%. Ease of use and complexity (29%) and impact on internet speeds (26%) also register. These concerns are not limited to non-owners: they surface broadly across the respondent base. Among respondents who have no plans to buy connected products, cost is the top specific reason (36%), followed by simply not being interested in smart home devices (34%). Privacy concerns are cited by 21% of non-buyers and security concerns by 19%, reinforcing that these are genuine market barriers — not just background noise. Complicated setup (9%) and compatibility issues (4%) are comparatively minor factors.
Pricing friction is real, but subscription models can work with the right structure. Monthly fees remain a hurdle: 19% of respondents would never pay one, 19% are somewhat unwilling, 16% are very willing and 31% are somewhat willing. The most popular fee ceiling is up to $10 per month, chosen by 24% of respondents, followed by those who want no monthly fee at all (29%). Only 7% say they would consider paying more than $20.
However, framing matters: 45% of respondents say they would be more willing to pay a monthly service fee if it reduced or eliminated the up-front purchase cost — compared with just 28% who would not. This suggests that subscription or product-as-a-service models could gain traction if positioned to lower the barrier to entry rather than as an add-on cost.
Customers warm up to alternative service models: Among alternative payment and ownership models, subscription/product-as-a-service (30%) leads, followed by bundled adjacent services (24%), pay-per-use (23%), and pay-for-outcomes (17%). Data monetization — where product fees are reduced in exchange for data sharing — is considered by 15% of respondents, while product-sharing models find the least appetite (12%). Nearly 34% of respondents select “none of the above,” reflecting a continued preference for traditional outright purchase.
Smart matters — but it is not the whole story. When asked how important it is for connected products to be “smart” or “self-learning,” 32% of respondents say it is very important and 40% say it is somewhat important — meaning nearly three in four consumers see intelligence as at least a moderately valuable feature. That said, 28% say it is not important, a reminder that basic connectivity and reliability will continue to drive many purchase decisions alongside, or in place of, AI-driven capabilities.
Emerging connected products generate real curiosity — especially when cost is removed. Home inventory management systems — IoT devices that monitor consumable products, predict demand, and autonomously reorder — top the list at 25%, followed closely by household robots with voice-assistant and facial-recognition capabilities at 24%. Smart gardening systems (20%) and at-home food recycling/composting devices (19%) also draw meaningful interest. Indoor farming systems attract 14% of respondents. Roughly 35% express no interest in any emerging connected product, suggesting the addressable market for next-generation devices remains a minority of consumers — but a meaningful one, particularly among the already-engaged cohort.
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