DIY Solutions and Pro Monitoring Offerings Blur Market Segments

The home security market continues to grow as more pro providers offer DIY solutions and DIY brands add pro monitoring.

Editor’s Note: SSI has partnered with Parks Associates for the creation of DIY FYI, a column designed to help dealers keep track of important smart home market developments, what the competition is and whether they want to jump into something they see as a new opportunity.

Smart security devices are often self-installable devices that have a variety of relationships with professionally installed systems. The term do-it-yourself (DIY) is often used for devices and systems, although the term can lack clarity concerning whether the owner does the installation.

Recent introductions of professional monitoring for self-installed devices provide consumers new options and the ultimate choice on their home security protection.

The residential security industry continues to experience a blurring of lines between professional and DIY solutions as pro providers offer DIY solutions and DIY brands add pro monitoring. Professional monitoring providers, like ADT, Brinks, and Comcast, have added self-monitoring options, while companies that started in the DIY space now offer professional monitoring.

Canary, a DIY smart home security provider, launched a professional monitoring service featuring AI-powered video verification to reduce false alarms. It is currently available only to existing subscribers for $9.99 per month and is expected to expand to new customers in the second half of 2021.

Tuya, a global IoT platform, partnered with connected safety platform Noonlight to add Noonlight’s 24/7 professional sensor monitoring API to its smart home platform features. Additionally, the partnership allows Tuya’s brand partners to offer smart security monitoring services.

Wyze, known for its affordable smart home pricing, announced $110 million in funding recently and launched a $5/month pro monitoring service — also powered by Noonlight. Providers expanding their solutions to address a broad spectrum of client security needs increases competition across the board, driving down pricing and making differentiation more difficult.

The vast majority of security system owners pay for some level of professional monitoring service, as Parks Associates’ research reveals that 30% of all broadband households report subscribing to a professional monitoring service as of Q2 2021. However, self-installed systems now represent nearly half of all security systems owned. In combination, these metrics underline the growth of the self-install, professionally monitored market for brands such as Blue by ADT, SimpliSafe and Ring.

In addition to DIY solutions, partnerships with insurance companies are helping extend market reach. ADT and SimpliSafe both work with home insurance providers, creating an additional purchase or distribution channel. Smart home security technology can potentially drive billions of dollars in savings for insurers and consumers.

While most insurers have struggled to find ways to leverage smart home and security devices to reduce risk, partnerships help insurers attract new subscribers and help security providers communicate an additional savings benefit to their products.

Expansion through other channels also continues, with a focus on professional installation. ADT and DISH Network announced a partnership in February 2021, expanding access to ADT’s smart home security products through DISH’s nationwide network of smart home professionals.

OnTech Smart Services, a subsidiary of DISH, will also serve as an installation provider. It is expected to launch in Q2 2021. The partnership broadens ADT’s reach in rural and exurban areas and may expand its subscriber base. DISH seeks to add value to its bundle of services through ADT’s security products.

Despite the growth in DIY, ADT continues to build on its core strength of professionally installed solutions. Earlier in February, Atlanta-based Ackerman Security Systems joined the ADT Authorized Dealer Program. These new partnerships extend ADT’s market reach and the speed at which it can deploy professionally installed smart home security services.

DIY solutions and partnerships to expand the distribution of products and professional installation are helping to develop the home security market as a whole.

Mark Vena is Senior Director, Smart Home Research Practice, for Dallas-based Parks Associates.

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