Internet of Things Goes Mainstream During the 2014 Holiday Season with Smart Home Devices Seeing the Most Growth

Published: December 18, 2014 by Scott Anderson

New research from Experian finds that nearly a third of all Americans use at least one type of smart or connected device; 14 percent of homes are smart homes.

 Experian Marketing Services published a new report today that tracks the recent rise and growing interest among consumers for connected devices and smart home products. A complimentary copy of the report, The Internet of Things: Opportunities through the rise in smart devices, can be downloaded here: http://ex.pn/1r0TJVp.

The report found that consumer interest in three connected device categories has shown significant growth in recent years, with no signs of stopping. In fact, according to the report, nearly a third of all Americans use at least one type of connected device. Further, at least 14 percent of U.S. households are smart homes and have a connected home device such as connected lights, locks, thermostats, or electrical outlets, among others.

Experian Marketing Services predicts that the smart home device category will see the most growth during the 2014 holiday season. Since the beginning of November 2014, interest in leading smart home devices has increased 54 percent. 

Percentage of growth in online search data since 2011

Percentage of growth in online search data during 2014 Holiday season

Smart watches & fitness trackers



Smart home devices



Smart television devices



Source: Experian Marketing Services

 “The rapidly growing trend of the Internet of Things manifested itself during the 2013 holiday season through the popularity of connected fitness trackers, but this year it is all about the emergence of smart home devices,” said John Fetto, senior analyst, marketing and research, Experian Marketing Services. “In fact, as smart home devices graduate from their niche darling status and become adopted and valued by a wider audience, we’re seeing greater recognition of leading category brands like Nest. In return, the growing familiarity with these leading brands is helping to drive awareness for the category overall.”

Top 10 hottest smart home device products

4 weeks ending December 6, 2014


Search term

Share of top branded search terms


Nest thermostat






ADT Pulse



Philips Hue



Nest Dropcam



Dropcam Pro






Nest Protect



Hue lights



Drop cam


Source: Experian Marketing Services

According to Experian Marketing Services, the consumers that are helping to push connected devices into the mainstream are a key segment to engage. Smart or connected device users, versus non-users, are generally younger, college educated and affluent. They are also more likely to be male, racially and ethnically diverse, and have kids at home. Further, users are highly connected, both technologically and socially, to their favorite devices and brands. Overall, they are more than twice as likely than the average U.S. consumer to access social media from different devices, to follow their favorite companies or brands on social media and be connected to the Internet at all times. The report also found that smart device users like to stand out in a crowd, are health conscious, driven to succeed and have a taste for the finer things.

“As everyday things get smarter, consumers will grow more reliant on those things to process information and designated tasks autonomously. They will also allow consumers to ‘unglue’ their attention from computer, tablet and smartphone screens,” added Fetto. “While marketers may think there is still plenty of time before they need to address this nascent trend, or feel it won’t fundamentally impact their business, the rapid rate of growth in consumer interest strongly suggests that connected devices will be commonplace before marketers know it.”

To download the entire report, please visit: http://ex.pn/1r0TJVp

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