Demand for security continues to drive interest and adoption of smart home solutions. The close relationship between the two is evidenced in a survey which shows 63% of security system households own a smart home product, according to the 2019 Connected Home & Entertainment Trends whitepaper published by Parks Associates.
About 26% of U.S. households have a home security system. And there is still room for growth, driven by increased DIY adoption, expanding distribution channels, innovative financing and enhanced value proposition (through interactive services, home controls and AI), says Parks Associates.
Name brands like Ring and Google’s Nest help to improve consumer awareness, which explains why 25% of U.S. households plan to buy a video doorbell in 2019. Self-installation is also growing. Among the smart features, alert notifications when someone enters the home have the highest appeal.
Dealership remains a strong channel for smart security products. They are responsible for half of sales of smart door locks, garage door openers, water leak/humidity detectors and networked security cameras.
Interactivity services and home control capabilities are especially popular. They offer consumers the ability to remotely control and monitor their systems while also enabling greater engagement.
There is also significant interest in other use cases like protection from water damages, energy management and health monitoring. “Companies in the home security space are well-positioned to expand their lineup to include care services that support aging comfortably at home and caregiving,” Parks Associates says.
Energy management trends
“There is strong untapped demand for products and services that make homes more energy efficient,” says Parks Associates, as more than half of respondents indicated having energy-efficient homes is very important.
Adoption of smart thermostats is the highest of any home automation product, and purchase intentions for these devices continue to climb. New users usually come to the market through smart thermostat rebates and giveaways from electric utilities.
Consumers value access to real-time energy information as well as cost savings, which may readily be supplied by smart home devices. “Access to high-frequency energy data enables multiple value-added services, many of which can be easily monetized as a service to consumers or partners,” Parks Associates points out.
Health and independent-living trends
Demand for innovate health solutions is immediate. The number of Americans 65 and older will exceed 80 million by 2050, while nearly 60% of consumers have a chronic condition.
New connected healthcare markets include on-demand virtual care services, connected medical devices, consumer fitness products and independent living solutions for seniors.
Many business opportunities exist for vendors offering healthcare solutions. Younger seniors and those with a home security system are more willing to pay for a solution than older seniors and those without a home security system. Caregivers show even higher interest and willingness to pay for an independent living solution for their loved ones.
Parks Associates also points out that people love the convenience of virtual care. Consumers like the experience while expanding reimbursement programs also drive the market forward.
Innovative firms across verticals are actively deploying applications of AI. Of all the forms of AI, voice and natural language processing provide today’s consumers with the most common experience of AI and the most visible value.
Video analytics applications employ AI to detect and identify persons, objects, animals, packages, license plates, and other subjects of interest visible in video camera feeds. 67% of consumers rate “alerts when someone enters your home” as the most appealing among a range of home security features.