“The internet is essentially the lifeblood of all consumer electronics products. Understanding where coverage gaps exist can help explain trends and identify future opportunities.”
PORT WASHINGTON, N.Y. (PRWEB) February 09, 2023
While availability of internet and speed of that service can vary widely from state to state, or even county to county, there are a number of technology devices that have reached parity levels among connected households in rural and urban U.S. markets. Those include, TVs, video game consoles, smartwatches, activity trackers, and tablets, according to The NPD Group. However, the latest Connected Intelligence Broadband America Consumer Report reveals wider gaps exist in ownership levels of devices that are more dependent on an internet connection to reach their full potential. Examples include 4K TVs, where a broadband connection is required for high-definition streaming, and smart home devices, where higher download speeds are needed for live video streams.
In the U.S., 50% of households do not currently have a broadband connection (i.e., 25Mbps per second download speed or greater). In addition, 15% of homes in the U.S. have no internet access, while 10% use a smartphone-only solution. Based on NPD’s findings, this lack of internet access or lack of internet speed has the biggest impact on rural markets. As a result, in rural markets ownership of 4K TVs and home automation products have trailed ownership levels reported in urban areas.
While other factors also influence this ownership gap, such as income levels, one theme that is consistent across 4K TV ownership for connected households in rural and urban markets is that as home internet download speeds increase, so too do household ownership levels. The same can be said of smart home devices, like internet security cameras that require higher download speeds. Conversely, ownership of DVD and Blu-ray players decline, as internet speeds grow because consumers are more likely to stream content when higher internet speeds are available.
“Consumers often experience buffering, when streaming in high definition without broadband access. As a result, homes with slower internet speeds have less incentive to purchase 4K TVs. In the case of smart TVs, while consumers may purchase them regardless of their internet connection, consumers with low internet speeds have lower usage, which presents a challenge for manufacturers that need usage data and advertising revenue to help sustain manufacturing,” said Eddie Hold, president of NPD Connected Intelligence. “The internet is essentially the lifeblood of all consumer electronics products. Understanding where coverage gaps exist can help explain trends and identify future opportunities.”
About Connected Intelligence
Connected Intelligence provides competitive intelligence and insight on the rapidly evolving consumer’s connected environment. The service focuses on the three core components of the connected market: the device, the broadband access that provides the connectivity and the content that drives consumer behavior. These three pillars of the connected ecosystem are analyzed through a comprehensive review of what is available, adopted, and consumed by the customer, as well as reviewing how the market will evolve over time and what the various vendors can do to best position themselves in this evolving market. For more information: http://www.connected-intelligence.com.
About The NPD Group
NPD is a global market information company offering data, industry expertise, and prescriptive analytics to help our clients understand today’s retail landscape and prepare for the future. Over 2,000 companies worldwide rely on us to help them measure, predict, and improve performance across all channels, including brick-and-mortar, e-commerce, and B2B. We have services in 21 countries worldwide, with operations spanning the Americas, Europe, and APAC. Practice areas include apparel, appliances, automotive, beauty, books, B2B technology, consumer technology, e-commerce, fashion accessories, food consumption, foodservice, footwear, home, home improvement, juvenile products, media entertainment, mobile, office supplies, retail, sports, toys, and video games. For more information, visit npd.com. Follow us on Twitter: @npdgroup.