Report: Home Automation, Home Security Integration Starting to Gain Traction

AUSTIN, Texas — With the residential market accounting for nearly 41% of the $2.7 billion intrusion alarm market in 2012, IMS Research, now part of IHS, forecasts it to have five-year compound annual growth rate of 5.3% from 2012 to 2017.

In the report, “The World Maker for Intruder Alarms – 2013 Edition,” the research firm notes that the residential space will become one of the fastest-growing verticals. Research analysts attribute the increase with the growing trend to combine home automation and home security systems on a single platform.

“The increase in new entrants attempting to penetrate the North American and European markets for home security is evidence of how successful this trend is becoming,” says Adi Pavlovic, analyst for access control, fire and security at IHS “Home management integration is gaining the most popularity in North America, which will increase the penetration rate of intruder alarm products into the residential sector.”

Pavlovic observes that Europe is at a close second, as more consumers are adding energy management features into their homes every year. Due to its large multifamily apartment culture and lack of professional monitoring services, researchers expect the deployment to intrusion alarms in Asia to be the slowest.

While intrusion alarm integration is popular in the residential space, progress in the commercial sector continues to be slow. There the trend has not gained traction because of a lack of unified legislation across each technology platform, according to the study. Regions with more lenient regulations, such as the Middle East, benefit from having the opportunity to integrate multiple systems into a single solution. Such an approach is more convenient, saves time and lowers costs by working with just one installer.

Momentum toward integration within homes is driven by increased investments in end-user education from new entrants hoping to successfully penetrate the market. This suggests that growth of integrated systems will continue to develop in the residential sector during the short to medium term. Manufacturers interested in integrated solutions should continue to focus on the residential market while integration in commercial applications remains sluggish, as the industry as a whole awaits standardization, according to the report.

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