According to a new report from Parks Associates, the proliferation of DIY solutions continues to have significant impact on the resident security market as the research firm predicts that more than two million U.S. broadband households are expected to a self-monitored security system by the end of the 2019.
The report, “Home Security: Market Sizing and Forecasts,” notes that 23% of self-monitored systems are fee-based, collecting on average $9 per month in 2019, and 22% also include home control. By 2024, average monthly fees will drop to $8.50, and 34% will also have home control add-on services.
"While smart home features may tip the scales towards acquisition, overall market drivers and inhibitors for home security are roughly the same as they have been for many years," said Dina Abdelrazik, Senior Analyst, Parks Associates. "Parks Associates forecasts roughly 30% of U.S. broadband households will have a security system by 2024, so the industry is in need of business models that can tap into the roughly 70% of households without a security system."
One of the ways Abdelrazik said the industry could accomplish this is with artificial intelligence (AI) and machine learning-powered solutions, which can reduce false alarms, sense anomalous activity, perform video analytics, and provide video verification and surveillance.
"A complete value proposition based on AI benefits would require a full alignment of AI-enabled hardware, system software, and intelligent call center services," Abdelrazik said. "Vertically integrated or partially vertically aligned players are in the strongest position to deliver these benefits because they can optimize the whole system, assure quality control and user experience, and monetize each component."
Among other key findings from the report include:
- Roughly 86% of US households now have fixed broadband capability; these are the households of strong interest for technology product and service providers.
- Among the 27% of broadband households with security, 23% or 23.88M report having professional monitoring.
- The majority of self-monitored security systems, 75%, are self-installed.
For more information about the report, click here.