A new study just released from The Freedonia Group, a Cleveland-based industry research firm, indicates that the all-in-one smart home security systems and kits market is expected to sharply increase over the next year. Driven by home and rental insurance incentives, Freedonia analysts are saying that the expected growth and adoption of technologies in this sector will increase from 26 percent in 2017 to $3.4 billion by the end of 2018 and eventually reach approximately $4.8 billion by 2015. These and other trends are presented in the firm's Smart Home Security study.
As the capabilities and increased offerings emerge for those consumers in the residential sector, Fredonia analyst Peter Kusnic is confident that a surge in the market will follow.
"Of all the ‘things’ in the IoT, smart home security devices will see some of the strongest growth opportunities in the near term - especially as consumer awareness of the range of solutions they offer increases, and market leaders continue to expand IoT-dependent services, such as in-home package and grocery delivery," says Kusnic.
According to the Freedonia study, the most significant driver of consumer adoption is the potential cost savings. Not only are home insurers monitoring domotic data gathered by IoT devices to gauge a customer’s level of risk, reduce claims, and, in turn, lower premiums – homeowners are leveraging the data to prioritize maintenance tasks before they turn into expensive problems.
Another key incentive for adoption is the convenience and low cost of all-in-one products compared to traditional systems encourage adoption among consumers who are less likely to invest in home security. Market competition and technological innovation resulting in the continual release of higher value-added devices with enhanced features will continue to exert downward pressure on prices for earlier-generation devices in the near term.
Other factors driving gains include:
- competitive pricing
- consumer optimism about smart home devices overall and the potential solutions they may provide
- enhanced analytics features and IoT integration
- greater cost-effectiveness, ease-of-installation, and ease-of-use compared to traditional home security options
- increasing product visibility and consumer recognition
"Successful products in the smart home security industry will capitalize on ongoing innovations that improve both ease of use and functionality of the equipment while ensuring that costs stay at levels that keep the products accessible to a large segment of the population," adds Consumer Goods manager Jennifer Christ. "For instance, Amazon’s affordable Ring smart video doorbell system just introduced its Neighborhoods app that allows citizens and law enforcement to pool information and share videos or still images like a high-tech neighborhood watch. Such developments make the smart security products ever more useful to homeowners."
Smart Home Security (published 4/2018, 159 pages) is available for $2900 from The Freedonia Group. For further details please contact Corinne Gangloff by phone 440.684.9600 or email [email protected].
