STUDY

Connected device usage increases in 2022 while consumers look ahead with caution

Assurant (NYSE:AIZ), a leading global business services company that supports, protects and connects major consumer purchases, today reveals findings from its latest Connected Decade research. The research reveals the continued rise in connected living, with growth in connected device usage and an increased appetite for 5G devices.

Assurant’s latest Connected Decade research explores U.S. consumers’ attitudes towards connected devices during 2022. According to the research, there was a 39% increase in device usage last year, where the majority of consumers surveyed (60%) connected at least one new or replacement device to their Wi-Fi for the first time.

But while device usage is on the rise and 5G has been a catalyst for driving smartphone upgrades during the past year, U.S. consumers facing inflation and the global cost of living crisis are cautious in their approach to spending on connected devices this year. According to the study:

• Only 39% of consumers are likely to upgrade their smartphones in the coming year, compared to 54% in the previous year.
• Only 30% of consumers are very likely to buy a newer model of their connected devices when the latest version is released — a 23% decrease from 2021.
• 60% of consumers have already upgraded to a 5G-capable smartphone or are willing to upgrade their device to get 5G capability. This compares to 36% the year before.

“It’s great to see the increased device usage and addition of new devices in the home in the wake of the heavy investments consumers made in connected devices during the pandemic. It clearly shows just how reliant we have become on our devices and the benefits that connected living provides,” said Jeff Unterreiner, President, U.S. Connected Living at Assurant. “As consumers hold on to their connected products for longer in the face of economic uncertainty, service providers and retailers have an opportunity to deepen relationships by offering support and protection solutions that give customers reassurance and peace of mind.”

Assurant’s research also shows that consumer consciousness and the desire to be more sustainable are creating growing demand for refurbished devices. While 35% of consumers were highly interested in buying a refurbished device, almost half (48%) expressed a willingness to pay an optional monthly fee that would support environmental sustainability initiatives.

“We all share a responsibility to ensure that sustainable practices are integrated into the entire device lifecycle. As with smartphones, trade-in and asset value recovery programs can make a big impact across the connected living ecosystem. What’s great about these programs is that the outcome benefits everyone – consumers, providers, manufacturers and the environment,” continued Unterreiner.