Somewhere in the chaos of raising two kids, I've become our household's de facto systems administrator. I check the thermostat schedule before bed. I glance outdoors to make sure our yard looks somewhat alive. And more than anything, I check the security cameras from my phone when I'm traveling, just to see that everything (and everyone) is fine.
Convenience matters. So does the utility bill. But what actually keeps me coming back to smart home technology is peace of mind. Turns out, I'm not alone.
The smart home isn’t about novelty anymore. When NielsenIQ asked consumers why they're investing in smart home upgrades, 58% pointed to lower utility bills, closely followed by safety, security, and everyday convenience. Reduced water use came in at 35%, a number that will only grow as more households face pressure on resources.
What strikes me is how practical these motivations are. Nobody buys a smart thermostat because it's a cool gadget. They buy it because it saves money and effort. Three in four shoppers now say they'd consider smart technology in a home renovation, with energy management and outdoor intelligence rising fast.
While cost remains the top barrier to most smart home tech, "I don't see the need for it" has actually grown since 2023, even as adoption keeps climbing. The value story still needs work, even for households already living it.
AI is no longer a bolt-on feature; it's becoming the connective tissue. When we asked shoppers what they want AI to optimize in a renovation, security (41%) and budget (40%) topped the list, well ahead of sustainability scoring or resale value. That matches my own instincts as a dad managing a household budget: I want AI helping me spend smarter and sleep easier, not just showing off.
There's real headroom here, too. AR and AI-powered planning tools remain a blind spot. 60% of all shoppers have no awareness of these services at all. For brands willing to invest in educating consumers, that's a wide-open lane with little entrenched competition.
If you'd told me five years ago I'd research robotic lawn mowers with the same intensity I once reserved for choosing a family car, I wouldn't have believed you. But outdoor intelligence is exploding. Consumers prioritize perimeter cameras and solar lighting with occupancy sensing (at 44%), alongside weather-adaptive irrigation and soil moisture sensors. More than half are interested in yard robotics, and when they shop…price, safety features, and runtime matter most.
For a family like mine that spent the summer living outdoors — pool days, backyard dinners, a garden my wife claimed as her own — this shift makes total sense. The yard isn't separate from the smart home anymore. It's an extension of it.
Despite all the digital noise, shoppers still split research between in-store and online — 62% at retailer websites, 62% in-store. Professional renovators lean harder into social commerce. Nearly half already trust AI-generated recommendations enough to consider switching brands. Amazon Alexa and Google Home/Nest still dominate consideration, but professional shoppers over-index on Apple Home and niche platforms — ecosystem trust isn't one-size-fits-all.
Back at my house, the mornings are still hectic and the kids are still glued to their devices. But when I lock the door and head to work, I don't worry the way I used to. The thermostat is managing itself, the cameras have my back, and the sprinklers know better than I do when the lawn actually needs water. That's the real promise of the smart home today: not flash, but quiet confidence — for families like mine, and for the millions of households our industry serves.
Blog article written by: Steffen Schenk, Managing Director, Non-Consumables, NielseIQ
NielsenIQ (NYSE: NIQ) is a leading consumer intelligence company, delivering the most complete and trusted understanding of consumer buying behavior and revealing new pathways to growth. With operations in more than 90 countries, NIQ covers approximately 82% of the world’s population and more than $7.4 trillion in global consumer spend. Through cloud-based platforms, advanced analytics and AI-driven insights, NIQ delivers The Full View™—helping brands and retailers understand what consumers buy, why they buy it, and what to do next.
For more information, please visit www.niq.com.