DALLAS — The integration of smart home products will be key to drive new recurring monthly revenue (RMR) growth among installing security contractors, according to new research from Parks Associates.
The research firm’s report, “360 Deep Dive: Driving RMR Growth With Add-on Products & Services,” notes the security industry has experienced flattening RMR growth as adoption of interactive services has exceeded 50% of security subscribers.
“Today, over three quarters of new security subscribers have interactive services, paying $9 per month on average for the service,” Tom Kerber, Sr., Director, IoT Strategy, Parks Associates, states in a press release. “As adoption of interactive services matures and new entrants with low-cost, self-installed systems put downward pressure on RMR, the industry is seeking solutions to expand RMR. Cybersecurity services, video verification, and personal emergency response are a clear path to generating incremental RMR.”
Parks Associates finds that only 23% of current security subscribers have an integrated smart home device, which can add an additional $15 to system costs. New industry initiatives, such as Vivint’s Flexpay, are designed to overcome consumer resistance to high upfront costs by offering financing options for security-as-a-service solutions and smart home products such as lights, locks and thermostats.
The “360 Deep Dive” report evaluates consumer interest in financing add-on home control products. It also evaluates the demographic and psychographic characteristics of consumers that are interested in each service.
Additional research includes:
- 50% of current subscribers will purchase add-on video verification for $10 per month
- More than 20% of current subscribers are very interested in both vehicle monitoring and tag tracking services
- Only 37% of new subscribers have an integrated smart home device
Parks Associates will host “Special Session: Home Security and the Smart Home” at CONNECTIONS Summit: Consumer IoT and Smart Home on Jan. 8, 2019, in Las Vegas, on the first day of CES 2019. The session will highlight opportunities and challenges in the smart home and residential security industry and features executive speakers from eQ-3 and Ring, an Amazon company.
