61 Percent of U.S. Consumers Account for 90% of All Connected Product Sales

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The number of U.S. consumers considered to be the most technically savvy has grown in the last three years, yet those who are least interested in being connected continue to comprise 39% of the population, according to a new study by Assurant, Inc.

Assurant’s “The Connected Now” study, a follow-on to the company’s 2017 “The Connected Future” report, shows that there is great consideration among U.S. consumers to buy connected products. Indeed, 97% of respondents said they might make a first-time purchase of at least one connected product in 2019, and 69% believe connected technologies make life better.

The report also shows that 61% of consumers account for 90% of all connected product sales, each owning an average of nearly nine connected devices. This group is migrating steadily to a more connected lifestyle evidenced by a 41% net increase in the share of those considered technophiles—for this study, people who own an average of 16 connected products—since 2016.

However, adoption of a fuller connected lifestyle continues to lag overall. In 16 of the top 20 connected product categories, many more consumers considered making a purchase last year than actually bought. The percentage of consumers deemed to be technophobes—for this study, those owning an average of just 1.3 connected devices—has held steady at 39% over the same period.

Part of this adoption gap may be due to the fact that 78% of consumers cite major frustrations with the connected products they own. At the same time, Assurant’s study reveals 73% of potential buyers are more likely to follow through on a purchase if the connected products came with value-added services including on-demand tech support and extended protection. This is up from 61% three years ago.

“While many consumers are becoming more tech-savvy, there remains a hesitation to buy,” said Assurant CEO, Alan Colberg. “We are focused on bundling and delivering technical support and extended protection with products that will enhance consumer’s intent to purchase and further embrace a more connected lifestyle.”

“Understandably, technophiles are the least likely to be frustrated by connected products and are the most habitual buyers of value-added services,” said Keith Demmings, president of Global Lifestyle for Assurant. “It’s clear that helping other consumers better understand the benefits of a connected lifestyle, together with making support and protection more easily available will broaden the market opportunity overall.”

Assurant’s latest survey polled more than 1,200 adult consumers in the U.S. who—at a minimum—own a smartphone and have a wireless service.