Security professionals must use these opportunities in the smart home
As adoption of connected devices increases, manufacturers and integrators have a tremendous opportunity to capitalize on consumer desires for peace of mind, comfort and convenience.
The home security industry has seen significant growth over the past few years, despite the impact of the pandemic. Parks Associates research of 10,000 internet homes shows that 36% of US internet homes now have a home security system, up from 26% in 2018.
Parks Associates’ most recent survey of security installers/dealers found that the most important business driver for dealers is smart home devices. Nearly 50% of security resellers said consumer desire for smart home/home automation products was the strongest consumer driver.
The smart home consumer base is largely made up of groups whose incomes and lifestyles are adjusting to the pandemic, and despite concerns about privacy and security, the industry continues to expand beyond the pandemic. beyond the first users.
Overall, purchase rates of smart home devices, particularly smart appliances, increased significantly at the start of 2021. The growth extended across all product categories as device owners smart homes continue to add more products to their home ecosystems; households with smart home devices own eight devices on average.
Dealers are also reporting lower ARPU for professional monitoring, offset by revenue from smart home devices and services. Leading dealers are developing additional offerings to keep ARPU strengthened in the face of competitive pressure. Premises monitoring fees will continue to boost profits for stockbrokers.
Interactivity as a security system capability is almost a staple and the supply of smart home devices is almost ubiquitous. Interactivity increases every year as the majority of new systems include remote access via smartphone or computer.
The installed base of interactivity is growing with new sales and replacements of traditional security with interactive security systems. Overall, 28% of all broadband homes have interactive service.
Traditional home security players continue to integrate advanced technologies, particularly around AI and video analytics, to create new service offerings, address new customer segments and integrate to Google and Amazon. These new advancements and innovative products are helping to redefine home security services and expand them into new areas.
Consumer Choice Regarding Installation, Appliance Assemblies, and Monitoring services are a driving force for professional and DIY solutions. Expanding consumer adoption of smart home products through retail, traditional home security vendors, and ISPs creates an on-ramp for the development of new professional services – or additional revenue for existing services.
The most popular adjacencies for a security system are network video cameras, video doorbells, and smart door locks. The best-selling smart home devices accompanying security systems are directly related to premises security.
Other smart home devices, such as thermostats, sit below security-related devices. It’s logic. Many resellers are looking to expand into more mainstream smart home devices such as smart thermostats and even entertainment.
Currently, popular smart home adjacencies are directly related to security (e.g. video doorbells). As the integration evolves, most categories, including energy management and convenience, will also integrate with the security system.
Parks Associates consumer surveys consistently reveal that peace of mind ranks among the top three smart home benefits that most influence purchase, slightly below convenience and comfort. The security industry uses the term “peace of mind” to emphasize one of the main emotional benefits of security services, without creating undue fear in the consumer.
As adoption of connected devices increases, manufacturers and integrators have a tremendous opportunity to capitalize on similar emotional benefits, leveraging a variety of ways these product ecosystems can deliver new and valuable experiences to consumers.
Security service providers can leverage consumers’ desire for peace of mind and develop alternative offerings that address that value.
Innovative products that add peace of mind to home security consumers are creating new ways to capitalize on the benefits of connectivity. As product capabilities expand, new monitoring services beyond security are proliferating, including proactive defense via video analytics, personal emergency response systems (PERS), monitoring energy consumption and securing valuable assets such as vehicles and garden equipment.
Integration between video, access control and home automation services will continue to grow in the years to come. Consumer expectations of their home devices and services will continue to rise along with their capabilities, opening more doors to integrate new monitoring services into the home.
The future is bright for companies that recognize the role of security in transforming the smart home into an increasingly personalized and engaging experience.
Elizabeth Parks is President and Chief Marketing Officer of Parks Associates.
SSI has partnered with Parks Associates to create DIY FYI, a column designed to help dealers keep up with important smart home market developments, the competition, and whether they want to get into something they consider as a new opportunity.