If recent projections weren’t proof enough that security dealers and manufacturers stand to benefit greatly from the smart home market, two new reports out this week offer an even brighter forecast for the industry.
According to a report from WinterGreen Research, security devices for the connected home market were believed to have brought in $1.2 billion in in 2014 and are forecast to reach $7.7 billion worldwide by 2021. The research firm said that the continuation of 2014 trends, such as a wide expansion of security-based do-it-yourself home devices, combined with low market awareness of the value of home automation, will force many connected home vendors to pivot and offer more than simple apps for device monitoring and control.
Subsequently in 2015 and beyond, there will be a movement toward interoperability between vendors, devices and platforms.
“In 2014, the Security for Connected Homes saw a large number of big-name acquisitions and entries. Samsung made an acquisition of SmartThings. Google’s acquisitions were of Nest, Dropcam and Revolv. Apple acquired HomeKit. Quantities of fielded point devices and systems increased. What defines the market is the ability of a device to connect to a smart phone app and send alerts directly from a connected device to a remote smart phone,” said Susan Eustis, leader of the team that prepared the study.
A separate report released by Technavio projects the interactive residential security market in the U.S. to grow at a compound annual growth rate of nearly 32 percent from 2015 to 2019. According to the research firm, the growing demand for energy-efficient solutions will be the primary catalyst for the market’s growth.
“Smart homes allow users to control lights and other appliances from a remote location. Power timers and monitors can easily provide real-time information on the amount of energy used at home. This is expected to inflate the demand for interactive residential security systems during the forecast period,” said Faisal Ghaus, vice president of Technavio.
In addition, Technavio said that is also expects to see increased use of wearable devices in hospitals and connected homes to facilitate optimum healthcare. These devices can also be used for biometric authentication, and are expected to become a fixture in the residential security market over the projected period, according to the report.
