Residential security continues to see a proliferation of smart home devices, as players like Comcast push ahead with efforts to leverage smart home opportunities.
New research from Parks Associates finds that 42 percent of residential security system installations now boast a smart home device like a door lock, thermostat, or light.
Interactive services, such as the ability to monitor and control security panels and sensor remotely is on the rise, the firm indicates. United States broadband households with professional security systems that reported having interactive services jumped from almost 60 percent at the end of 2016, to more than 70 percent this year, according to Parks Associates.
Comcast launched its Xfinity Home security service in 2012, and has seen subscribers doubled to more than 1 million over the last two years.
The company is reportedly turning to home automation and smart home offerings like remote-controlled cameras and door locks, in the hopes of signing up customers who also subscribe to broadband cable services.
Comcast is planning a pilot program to offer a video camera for an additional $10 per month, bundled with its broadband offering, according to Reuters.
“The residential security market, due in part to its position as the leading channel for smart home solutions, has attracted numerous new entrants, beginning with Comcast in 2010, followed by Time Warner Cable and AT&T,” Dina Abdelrazik, research analyst at Parks Associates, notes. “The importance of interactive services is apparent, as dealers recognize and acknowledge the positive impact on attrition rates, the ability to drive higher RMR, and the ability to attract new customers to the security market.”
Abdelrazik adds that smaller, local dealers who are not embracing interactive services because of support concerns, are losing market share.
“Among smaller, local dealers, only 53 percent of new installs have interactive services, and 18 percent of new security system installations include a home control device,” she comments.
A May report from Parks Associates indicated there was a “robust opportunity for broad adoption and usage,” in the sector, as more consumers see value in smart home devices, than are familiar with the products.
“More than one-fourth of households own at least one smart product, but only 12 percent own a smart home system,” Tom Kerber, director of IoT strategy at Parks Associates, notes. More on that here.
This time around, Parks Associates estimates that 23 to 25 percent of U.S. broadband households have a working security system, while 21 to 22 percent have a professionally monitored security system.
The latest report, Competition in Residential Security, also notes that between 50 and 60 percent of smart security devices are adopted as part of a customer’s security system.
In 2016 professional monitoring garnered nearly $11.7 billion in annual revenue, according to Parks Associates.
