Report Identifies Growth Opportunities in Home Security Market
About 5 million broadband households in the U.S. —or about 10% — considered purchasing a home security system within the past year but ultimately didn’t get one, according to new research from Parks Associates.
The report, “Expanding the Base: From Security to Smarthome,” notes that half of that group are still open to purchasing a security system. Meanwhile, another 2% of U.S. broadband households actually installed a security solution over the same period.
Results showed that two-thirds of households without a security system that Parks Associates surveyed expressed interest in smart home systems that provide a mixture of safety, security and home control features. The report noted that the level of interest bodes well for telecom and cable companies, such as AT&T Digital Life and Comcast, which offer smart home service packages.
“The recession dampened the market for security, but there is demand for new systems,” says John Barrett, director, consumer analytics, Parks Associates. “The challenge is getting the right mix of features and pricing as well as communicating to consumers the value of a smart home system.”
The report also found that that monthly service fees are a key sticking point for consumers considering purchasing a smart home solution.
“Integrating security into a smart home system creates a new value proposition within this market and will help lure new adopters,” Barrett said. “Companies looking to increase the likelihood of adoption of professional security with smart home features must increase the value proposition for the overall package and service.”
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