New research from global consulting partnership Kearney shows that UK consumers spend the most in Europe on their devices, broadband and streaming services each month.
Kearney calculated the Connected Consumer Index (CCI) as part of its NextGen 2020: the Connected Consumer study. The study looked at 16,000 participants worldwide to determine how connected consumers were in each country. UK consumers are on average spending £98 per month to stay connected, with most of this sum going towards mobile and internet.
The Connected Consumer Index rated countries and regions on the average connectivity of their consumers. Consumers in the USA are the most connected in the world with the highest monthly spend for connected consumers at £168 – the majority of this going towards video services, mobile phones and bundles. Russia was comparably low with spending on connected devices, entertainment streaming services and mobile and internet all below the global average of £79.
While the UK spends more than many other countries, consumers are still happy to pay more for products and services. Kearney estimates that there is a 19% growth potential in the UK market in areas such as home surveillance systems, smart home devices e.g. Amazon Echo and Google Nest, and connected health and fitness products.
Over one in five (21%) consumers are not happy with their internet speed either, which means providers will have to compete even more for consumer spend. There is £1.3mn of additional potential spend in the UK to bring customers higher speed internet and remote working will only increase the need for consumers to have fast internet connections. To progress, service providers must diversify, with services such as e-education, audiobooks, digital news subscriptions and eSports all ripe for picking.
Jonatan Matsson, Partner at Kearney comments:
“To succeed, telecom companies need to diversify to offer increasingly connected consumers an optimised experience. Although the UK scores highly for connectivity, placing it as a world leader, there is room for growth and opportunities for service providers to advance. Untapped potential in media and entertainment, the relative lack of people that have connected devices in their homes and a need for speed when it comes to internet connections are all critical areas for businesses to explore.
“During the pandemic, and this extended period of isolation, connectivity has been critical. Many have relied on internet and phone connections as their only means of keeping in touch with loved ones, and streaming services for entertainment when in-person socialising remains off limits. News of an upcoming vaccine rollout could spell the end of isolation for many consumers, but the way we live has changed in a fundamental and possibly permanent way. People will continue to work from home, so the demand for 2020 speed and reliability will remain, and firms will have to keep up momentum by continuing to enhance their services.”