According to the Samsung BNB Integrated Offering's Smart Home Buyer Index 2024, 79% of those surveyed said they want a smart home.
The SHBI also found that those surveyed were prepared to pay an average premium of 7.7% – around £21,774 – on the average UK house price of £282,776.
The smart home market is predicted to show a compound annual growth rate of 11.66% between 2024 and 2028, generating revenues of around £8.6 billion in 2024 alone, indicating that movement is accelerating.
Financial concerns are big for those looking for a smart home
In addition to the 63% of respondents who sought cost savings through technology, nearly 70% of respondents cited energy efficiency as their main reason for using smart technology.
Additionally, 84% wanted to reduce their energy bills.
Samsung's search volume analysis confirms this trend, showing that searches for smart energy appliances increased by approximately 60% from April 2023 to April 2024.
Leading the surge were air source heat pumps, with searches up 173% year-over-year, surpassing smart meters.
Mark Seaman, head of Samsung's B2B integrated delivery team, said: “Our data shows that understanding the importance consumers place on their smart homes can help drive higher rental and sales prices, leading to a better return on investment for homebuilders and developers.”
Focus on energy efficiency a welcome addition for industry
The focus on energy efficiency is good news for the industry as it prepares for the UK Government's Future Homes and Buildings Standards.
These standards will require that, from 2025, new homes will have 75% to 80% lower carbon emissions than homes built under previous regulations.
Home builders and developers who integrate future-proof technologies can help people achieve energy efficiency and cost savings, especially as new technologies emerge.
Home security is the biggest reason to adopt smart technology
After energy efficiency and cost savings, home security is the next biggest reason for adopting smart technology, with 75% seeking peace of mind and protection through connected security features such as doorbells and cameras.
Integrating connectivity into the home provides greater security and control by allowing phones and other devices to access secure networks.
Trends by age group
Smart homes aren't just for young people: there is growing interest among people aged 65 and over who want to benefit from smart technology.
The industry therefore needs to cater to the needs of all age groups, not just the younger generations – this is particularly important as the UK's older population is expected to grow to around 26% by 2066.
The UK construction industry expects new work output to increase by 21% between 2024 and 2029.
Those managing new build projects should take note of SHBI’s observation that technology is a big factor in attracting people to new build properties.
The survey revealed that 80% of people are attracted to these homes, with 36% citing pre-fitted smart technology as the main reason.
Furthermore, 53% believe new developments are designed for modern living, possibly due to their technological capabilities, and 57% believe they place a premium on energy efficiency.
Specifically, 40% of people aged 65 and over said they would prefer to move into a new home if it came equipped with technology, highlighting the importance of integrating technology into all types of housing, including retirement housing.
Seaman concluded: “The UK housing market has been in the spotlight in recent years, with the cost of living crisis, rising inflation and volatile energy prices also at the top of many people's minds.”
“There's a real opportunity for developers and homebuilders to work with the right partners, integrate technology from the start and take a digital-first approach to build the homes of tomorrow today.”