Smart Home Security System Sales on Pace to Hit $4.8B by Year-End
Home and rental insurance incentives will encourage a faster rate of adoption going forward. These and other trends are presented in Smart Home Security, a new study from Freedonia Group.
CLEVELAND — Demand for all-in-one smart home security systems and kits is expected to increase 26% from 2017 to $3.4 billion by year-end 2018 and eventually reach $4.8 billion by 2025, according to Freedonia Group.
Home and rental insurance incentives will encourage a faster rate of adoption going forward. These and other trends are presented in Smart Home Security, a new study from the Cleveland-based industry research firm.
Other factors driving gains include:
- competitive pricing
- consumer optimism about connected devices overall and the potential solutions they may provide
- enhanced analytics features and IoT integration
- greater cost-effectiveness, ease-of-installation, and ease-of-use compared to traditional home security options
- increasing product visibility and consumer recognition
The most significant driver of consumer adoption is the potential cost savings. Not only are home insurers monitoring data gathered by IoT devices to gauge a customer’s level of risk, reduce claims, and, in turn, lower premiums, homeowners are leveraging the data to prioritize maintenance tasks before they turn into expensive problems.
The convenience and low cost of all-in-one products compared to traditional systems encourage adoption among consumers who are less likely to invest in home security. Market competition and technological innovation resulting in the continual release of higher value-added devices with enhanced features will continue to exert downward pressure on prices for earlier-generation devices in the near term.
The Freedonia study presents historical demand data (2016 and 2017) and forecasts for 2018 and 2025 by product (smart home speakers and hubs; all-in-one smart home security systems and kits; smart home security cameras and related devices such as video doorbells; smart home safety and security alarms; and smart home locks and access controls).
It also features detailed profiles of key products and industry leaders, including ADT, Alphabet (Google, Nest Labs), Amazon, Apple, Comcast, Honeywell, and Samsung, as well as discussion of demand drivers and restraints, including consumer privacy concerns (e.g., Cambridge Analytica’s breach of 80+ million Facebook users’ data), and the technological outlook for the next generation of smart home security devices.
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