This article originally appeared in the January 2022 issue of Security Business magazine. When sharing, don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter.
Smart home device adoption continues a slow but steady upward climb. According to Parks Associates research, 36% of broadband households have at least one smart home device, and U.S. broadband households count 14 connected devices in their home on average, and that number naturally increases as the number of residents in the household increases.
Households with a home security system have dramatically higher rates of smart home device ownership; in fact, Parks Associates has found that 79% of all households that have professionally monitored security have at least one smart home device. As that collection of smart devices grows, the opportunities to offer new experiences to end-users and solve different problems, inefficiencies or inconveniences in the home increases as well. Our research found that 85% of security dealers/integrators offer interactive services, driving incremental revenues for monthly services.
Ultimately, there is an abundance of opportunity for security providers to branch out from their core security services to leverage this trend of increased smart device adoption.
Video Features Drive Demand
One of the capabilities we have seen advanced significantly in the past few years is video analytics, through internal and external cameras and video doorbells. When we ask security system owners and those who intend to purchase a security system in the next six months to consider and rank their top system features, video analytics have pretty strong appeal, and nearly 40% rank video product integration with a security system that comes with some video storage as a top-three feature for their system.
About one-third say video analytics that can identify people, packages or cars is a top-three feature; and one in four rate video verification techniques that can help reduce false alarms as a top feature.
Video verification, of course, has the opportunity to be an incredible win for security integrators and monitoring centers, so technology can ensure emergency responses are responded to in a timely way. In fact, the percentage of security dealers/integrators who report incorporating video verification services as part of their solution has grown dramatically from about 40% in 2018 to over 70% today.
Parks Associates has also done some testing of how those who intend to buy camera products – whether standalone DIY or via a security system bundle – value advanced video surveillance. Two-thirds selected a product that included both video storage and AI capabilities for a recurring monthly fee; in fact, 30% selected the highest-priced package at $10 a month, which is three times the cost of the lower-priced option.
This is obviously a huge opportunity for integrators to add a revenue stream, and there may be other price points and packages above the ones Parks Associates tested that would still appeal to certain types of customers.
Move to Secure Outdoor Spaces
Of course, consumer desire for peace of mind doesn't stop at the front door. Consumers are most interested in preventing home intrusion, trespassing, vehicle damage, and protecting the outside of a home as well as the yard. Extended property such as outbuildings and outdoor equipment is a natural extension of a home security system.
Parks Associates research has found that one in five security system owners say it is important that their systems protect their yard and outdoor items. More than a third of those intending to purchase a security system ranked that as a top-three condition most important for a security system.
After spending more time working and schooling from home, consumers are really rethinking their outdoor spaces. They are also looking to use their outdoor space to host visitors in a safer way. With that comes plans to improve and invest in renovations for outdoor spaces, which points to an interesting opportunity for security providers to offer add-on services and devices like video analytics, smart sirens, and smart lighting and sensors to enhance outdoor areas.
Vehicle Monitoring
There are several elements to the physical security of a car, including maintenance status as well as the safety of the driver. Parks Associates research reveals that car security is actually the next-leading concern after physical home security, the safety of loved ones, and electronics.
Our research found that 42% of security system owners say it is important that their system protect their vehicles, and 69% are interested in vehicle monitoring as an add-on for home security systems. The most desired capabilities of this service are tracking a stolen vehicle and receiving alerts of possible break-ins; however, an added major concern for households with children is driver safety – especially for teens and elderly drivers. Vehicle monitoring services can understand driving behavior – sending alerts for instances of speeding or sudden acceleration, hard braking, or collision.
There is a valuable opportunity here for security providers to integrate vehicle monitoring services with the rest of their smart residential security offerings – for example, outdoor cameras with video analytics can monitor specific drivers and alert users when they leave and return home. Some systems can use vehicles as geolocation devices to trigger automations like turning the lights or the air conditioning on and off when a car enters or leaves a designated area.
More security dealers/integrators report that they are offering these services. Parks Associates 2021 research revealed 41% of security dealers surveyed offer some form of vehicle monitoring.
Jennifer Kent is Vice President of Research for market research firm Parks Associates. To get more details on Parks Associates research, and to learn more about the firm’s annual CONNECTIONS Smart Home Summit, visit www.parksassociates.com.
