Households in the United States with professionally monitored security services will expand to 30 percent by 2020, according to a new report by Dallas-based research firm Parks Associates.
In the report, titled “IP-based Home Monitoring Security,” the firm notes an estimated 18 percent of U.S. households used professionally monitored security systems in 2010, generating roughly $10 billion in service fees. Consumer demand for remote monitoring and the increasing presence of broadband service providers will drive growth in the security market, according to the report.
“We believe Internet-connected security systems will expand the residential security market by providing additional capabilities and benefits to a broader range of consumers than those who are typical subscribers,” says Bill Ablondi, the firm’s director of home systems research.
As broadband services become more widespread, a disruption to the traditional sales model at many security companies can be expected. One-third of U.S. consumers in broadband households find remote control of lights, appliances and thermostats via Web-enabled devices very appealing, according to the firm’s research. Nearly 50 percent of U.S. consumers find E-mail/text notification of smoke, fire, water, or gas leaks very appealing.
Broadband providers are well-positioned to tap into this market due to their existing infrastructure and ongoing customer relationships, and their field operations can enable a range of digital home management services, according to the firm.
“With smartphones and other Web-enabled devices, clients are carrying a link to their home systems,” Ablondi says. “These Internet-connected security systems provide added capabilities and benefits. They are expanding the residential market by bringing new customers into what was a relatively stagnant consumer base.”