Hardware Retailing The Industry's Source for Insights and Information
By the Home Improvement Research Institute
It’s time to focus on how smart home, HVAC and electrical systems work together in the retail space. The Home Improvement Research Institute’s (HIRI) Project Decision Study reveals that under the broad project umbrella of electrical system rewiring, most homeowners use products in at least one of the three categories.
Top Projects Bring Categories Together
According to HIRI’s 2024 Retail Selector Study, homeowners reported spending $850 to $900 total on home improvement shopping trips that included purchases made from the electrical, lighting and HVAC departments, with median category spends of $150 and $230, respectively. Two of the top reported electrical projects by homeowners included installing a home automation system and home security products and replacing HVAC systems.
Increasing Demand for Smart Home Systems
According to HIRI research on homeowner trends in energy efficiency, more than one-third of homeowners plan to invest in smart home systems and energy efficient appliances over the next five years. In the study, 38% of homeowners report that they are likely to adopt smart home systems, which include technology such as smart thermostats. In addition, 18% say they are likely to purchase a home energy management system.
What are some of the main factors driving adoption? HIRI’s 2023 Project Decision Study confirms that when it comes to electrical system rewiring, homeowners have some priorities regarding these types of projects.
While homeowners may have less expendable cash on hand in current market conditions than they did a few years ago, they are willing to dip into savings or make use of credit opportunities to see their desired projects come to life.
With the desire to save on utilities top of mind, especially for older homeowners, it makes sense that families with low to moderate incomes are more likely to adopt smart home systems than other segments. Respondents in these categories are naturally concerned about cost savings. They also report higher concerns about privacy and home security. Recognizing the unique concerns of this group can help retailers find products and services that meet homeowner needs, such as by offering an integrated line of smart home appliances, thermostats and security systems.
