SSI logo

Report: Security Dealers Losing Grip on Home Automation Market

Security dealers will lose more than 50% of their current market share on the home automation industry as telcos, cable companies and retailers gain strength, according to a new report from ABI Research.



By ·

The security industry will see its leadership position as the de facto source for home automation installation and monitoring services shrink significantly in the next five years.

According to a new report from ABI Research, security dealers will suffer a 50 percent drop in their collective market share for “smart home” services by 2019 as competition increases and rivals leverage their own strengths with competing services. That is despite a predicted growth of 37 percent the number of U.S. households adopting home automation services.

In the report entitled “Home Automation Subscription Pricing Models,” ABI Research examined the offers, assets, and competitive positioning of telcos, cable companies, retailers, and monitored security players in the U.S. managed smart home service market. As shown in the analysis, the early mover advantage of monitored security companies cannot match some competitor’s core competencies which are better suited to selling smart home products and services.

“The potential for each vendor in the managed smart home market stems not just from their current offerings but also from their ability to introduce smart home services to new and existing customers. Monitored security has long seen its market penetration stymied and the ability of smart home applications to widen its appeal is uncertain at best,” says Jonathan Collins, principal analyst at ABI Research.

Monitored security players will increasingly face a choice between continuing to bundle smart home service with monitored security or creating separate, entry-level smart home offerings. Varying service cost, functionality, device support, contract length and bundled service models are all being tried and tested by vendors within the growing marketplace challenging security player traditional offerings. Between 2013 and 2019, managed smart home service adoption will grow 37 percent in the US.

The report looks at the potential for smart home subscriber services in the United States as well as the specific approaches of key companies in the market. These include ADT, AT&T, Comcast, Lowe’s, Staples, Time Warner and Vivint.

Jason Knott is editor of SSI’s sister publication CE Pro.


Article Topics
Business Management · Intrusion · Vertical Markets · News · Research · Home Automation · Industry Research · All Topics
Home Automation, Industry Research


By Mark Bennett on March 23, 2014

Very interesting.

PSA Cybersecurity Congress
Latest Download
How to transition your business to an as-a-service model, and why it's beneficial…
Sammy Awards
Trending


SPONSORED LINKS


Don't miss out! Subscribe to Security Sales & Integration magazine today. - Security Sales & Integration

EDITOR'S CHOICE