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IHS Markit

Global smart home market still growing

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Wednesday, September 4, 2019

The global smart home market is forecast to grow by nearly a factor of five to reach more than $192 billion in 2023, up from $41 billion In 2018, according to the latest Smart Home Device Database from IHS Markit.

The research firm noted that the United States led all countries in 2018, representing about 35 percent of global market revenue. China was second, accounting for an 18 percent share.


The fastest-growing device types in the market include lighting, smart speakers and connected major home appliances, according to Blake Kozak, principal analyst for IHS.

“The brilliance of the smart home is that it can be molded to suit the requirements of any kind of consumer, from the strictest demands of power users to the simplest automation needs of dabblers,” said Kozak. “Irrespective of consumer tech-savviness, the smart-home market has bourgeoned into a consumer technology heavyweight, eager to move beyond the basics of security and single-family homes and into uncharted opportunities. However, these uncharted opportunities are coming with concerns about privacy and the technology’s readiness for primetime. The remainder of 2019 and start of 2020 will be a pivotal time for the smart-home market as companies and service providers fine-tune their strategies and reposition to compete with the smart home juggernauts — as well as newcomers looking to upend the status quo.”

Smart-home companies look to future opportunities

Kozak pointed out that companies looking to make waves in the smart home market include IKEA and newcomers such as Wyze, which offer ultra-low-cost devices.

He added that major players also will make pivotal strategy changes to enhance their competitiveness, with examples including Google, which recently ended its  “Works with Nest” program. In another example, he pointed to Amazon Alexa, which achieved compliance with the Health Insurance Portability and Accountability Act (HIPPA).

“For its part, Ring is launching into the small-medium businesses (SMB) segment,” said Kozak. “Comcast will focus on its Xfinity platform and hone its strategy around content deployment. Meanwhile, Centrica, which offers the Hive smart home, plans to focus its platform on energy and services.

Software, analytics and partnerships

A brief hiatus in hardware development has prompted smart-home companies to make advancements with software, analytics and acquisitions/partnerships, according to IHS. However, Kozak noted that another hardware push is set to arrive soon, with the arrival of new smart speakers from Google, Apple and Samsung as well as offerings for insurance companies and apartment complexes.

US smart-home penetration rises, despite privacy concerns

Although the U.S. smart-home penetration exceeded 38 percent in 2018, IHS said the market’s further progress could be impeded by privacy concerns, which is why IHS is advising technology providers to take steps to alleviate consumer apprehension.

“Rapid innovation often breeds speculation and mistrust,” Kozak said. “Because of that, smart-home companies should be as transparent as possible regarding data usage. They also should focus on edge-based processing, which reduces the need for cloud-based computing systems that send private data over the internet. The smart home should also make greater efforts to comply with standards and regulations for sectors such as security, healthcare and senior care. By having more standards and regulations in place, innovation in the smart home will be less a source of anxiety for consumers and instead become a cause for optimism and a fulcrum for peace-of-mind.”

The IHS Markit Smart Home Device Database assesses the market for smart home devices including unit shipments, installed base, housing type, route to market, system type, connectivity type, network controller, country/sub-region and market shares.

Genetec takes top global VMS vendor position, IHS reports

Company also retains No. 1 position in Americas for the 8th consecutive year
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06/19/2019

MONTRÉAL—Genetec Inc., a technology provider of unified security, public safety, operations and business intelligence solutions, was named the world’d No. 1 vendor of Video Management Systems (VMS), according to a recent report published by global research firm IHS Markit.

For the love of smart speakers

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Wednesday, February 20, 2019

The love of smart speakers is permeating the world, as more and more people are introducing these devices into their homes for various reasons—to listen to their favorite tunes, search for real-time and factual information, listen to news, chat with the voice assistant for fun (I mean, it’s pretty cool to play trivia with Alexa!), and use alarms and timers, and more. So, to do all these activities, what are people looking for in a smart speaker?

After surveying more than 13 percent of Internet users with smart speakers in their households in November 2018, from Australia, Brazil, Canada, Germany, India, Japan, the United Kingdom and the United States, IHS Markit found:

•    27 percent said the most important feature is “integration with services and devices;
•    25 percent said a “questions and answers” feature; and
•    24 percent indicated “sound quality.”

Of the respondents with access to smart speakers powered by Google Assistant or Amazon Alexa, they were more likely to rate integration as the most important feature because they positioned their digital assistants as smart home hubs, primarily because both platforms leverage their own entertainment offerings, such as audiobooks and streaming music.

Fateha Begum, associate director, IHS Markit, revealed the following information from the survey in an announcement:

•    Sound quality and integration is usually equally important among consumers, especially for those with Bose, JBL, Link, Panasonic, Sony and other traditional audio brands.
•    Smart speaker households in India and Brazil selected sound quality as the most important factor.
•    Amazon Echo and Google Home owners said answering questions was top of their list.

Across all markets surveyed, it seems Amazon Echo is making a bigger splash among households. Those owning Amazon Echo devices were more likely to have multiple devices and on average, 21 percent accessed two Echo speakers with 15 percent accessing three or more speakers. Only 15 percent of Google Home owners had access to two Google speakers with an additional 15 percent accessing three or more speakers.

In my opinion, the key takeaway from this survey was stated by Maria Rua Aguete, executive director, IHS Markit, “Operators now understand the importance of having their own digital assistants, to maintain and control the customer experience and network usage.”

As the semi-proud new owner of an Echo Show, 2nd Generation, I enjoy Alexa for the little things—playing games and listening to music, and I appreciate the concept and lure of smart speakers and AI, but for me, and maybe it’s my undeniably strong Texas accent, Alexa just doesn’t understand me! 

For more research on the smart speaker craze, click here.
 

ACaaS and mobile access adoption growing

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Wednesday, August 15, 2018

Access-control-as-a-service (ACaaS) market revenues will increase to $950 million by 2022, and global mobile credential downloads are forecast to increase at a compound annual growth rate (CAGR) exceeding 100 percent from 2017 to 2022, according to recent findings from IHS Markit.

The London-based research firm found that small and medium-sized businesses are the leading adopters of ACaaS solutions, accounting for 21 percent of market revenues in 2017, with around 20 percent of the current installed base of access control readers will be mobile capable by 2022.

“Demand for ACaaS has grown rapidly over the past five years, and this growth is expected to continue,” Jim Dearing, senior analyst, security and building technology, IHS Markit, said in the announcement of the findings. “While there have been relatively few attempts to combine ACaaS solutions with mobile access, despite their apparent synergies, this type of integration will become more common over the next five years.”

Dearing pointed to following key benefits of integrating ACaaS and mobile access:

•    A significant segment of ACaaS end users opt for fully managed solutions. Providers of managed solutions would benefit from the ability to issue and decommission credentials remotely, allowing them to lower management costs.

•    Both mobile access and ACaaS are typically sold via subscription, or using recurring fee-based pricing models. Adding mobile credentials to an ACaaS contract would not be an issue for an integrator, and as mobile access becomes more popular in the traditional access control market, end users and installers are likely to become more familiar with the recurring-fee pricing model, which should generate additional interest in ACaaS.

•    Like ACaaS solutions, the majority of access control solutions are cloud-based. As both become more popular, end users are likely to become more comfortable deploying cloud-based security solutions.

•    ACaaS is increasing the penetration of access control systems in buildings, and many end users are owners of small and medium-sized businesses who have never owned an access control system before. This situation poses an excellent opportunity for mobile access, as providers can ensure that mobile-capable readers are installed from the outset.

In terms of overall adoption, Dearing said that, so far, early adopters of each solution are based in different industries. “Mobile access has seen its strongest adoption in the education and hospitality sectors, while ACaaS is gaining traction with small and medium-sized businesses and the property management segment,” he explained. “Due to the large number of smaller projects, a significant portion of ACaaS end users value affordability over advanced feature sets and functionality. ACaaS providers may struggle to convince end users to install readers that are mobile-capable but also more expensive.”

Despite both solutions typically being billed on a monthly or annual basis, the pricing models vary slightly, Dearing said. “ACaaS solutions are priced according to the number of doors, while mobile access is priced according to the number of credentials or users,” he noted. “Creating an intuitive but optimal pricing model for the combined solution could prove tricky for suppliers. If both original metrics are kept, suppliers are likely to encounter difficulty as end users scale their solutions.”
 

Video surveillance equipment market growing

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Wednesday, July 11, 2018

Growth in the global professional video surveillance equipment market accelerated in 2017, and is forecasted to continue growing in 2018, according the latest IHS Markit research.

The world market for professional video surveillance equipment grew by 9.3 percent in 2017, IHS found, a much higher rate of growth than in 2016 (3.9 percent) and 2015 (1.9 percent).

“Increased government spending on equipment to fight crime and terrorism was a major factor in this growth, as was private sector spending on replacing equipment in retail and commercial installations,” Jon Cropley, senior principal analyst, video surveillance, IHS Markit, said in a summary of the study.

Increasing demand for security cameras is expected in 2018, he said, but a slightly lower of level of price erosion is also forecast. The combination of these factors will lead to 10.2 percent growth in the video surveillance equipment market, which will reach $18.5 billion in 2018, IHS noted.

Global demand for security cameras grew rapidly in 2017, but average prices continued to fall. “Nevertheless, revenue grew in most countries,” said Cropley. “Two of the fastest-growing country markets were Brazil and India. A major factor behind the growth in both countries was increased spending by private retail and commercial organizations on HD CCTV systems used to prevent crime.”

Accounting for 44 percent of all global revenue, the Chinese professional video surveillance equipment market grew by 14.7 percent, while the world market excluding China grew just 5.5 percent. “One major reason for the higher growth in China was the government’s Xue Liang program driving investment in both city surveillance projects and extending city surveillance systems into surrounding rural areas,” Cropley noted.

Other key findings include:
•    Although it remains highly fragmented compared to many other markets, the supply base for professional video surveillance equipment is gradually becoming more concentrated. The top 15 vendors accounted for 62 percent of global revenue in 2017.

•    Overall, 62 percent of all security cameras shipped in 2017 were network cameras.

•    Deep-learning-enabled recorders and servers, a new category this year, are an important element in powering what many expect to be the next generation of video analytics using artificial intelligence. They accounted for just 1 percent of global market revenues in 2017.
 

Voice control on the rise for security systems, IHS Markit says

Convenience and consumer choice among factors pushing voice forward
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06/27/2018

LONDON—IHS Markit, a research firm based here, recently released findings that forecast an uptick coming for voice activation in security systems.

IHS Markit projects growth, changes for alarm monitoring market to 2022

Company analyst recommends traditional security companies look more at value-added offerings
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05/14/2018

LONDON—IHS Markit, a research firm based here, recently released some insights on the alarm monitoring market in 2017 and what it predicts will happen by 2018 and 2022.

IHS Markit looks at the rising number of security start-ups

OEMs play a factor in increased entrants, according to IHS Markit analyst Jim Dearing
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11/13/2017

LONDON—According to IHS Markit, a research firm based here, there have been more start-up companies for consumer grade cameras, DIY systems and smart home solutions. The company detailed the nature of these start-ups and contributing factors to their increased numbers in a report, “Security Start-Up Numbers Soar – Have the Barriers to Entry Ever Been So Low?”

DIY's impact on security significant

 - 
Wednesday, November 1, 2017

YARMOUTH, Maine—With the recent announcements from Nest, Ring, and Samsung/ADT, as well as Honeywell’s announced plans to offer a DIY solution, many in the industry are speculating on the impact DIY security systems could have on the security industry.

New research from Parks Associations shows aggressive innovations in smart DIY solutions will reinvigorate the home security market. Parks found that new and more economical DIY systems from key players, including Nest, Ring, Samsung, and ADT, are part of a key step in expanding the security market. The international research firm also notes that new smart DIY solutions will reinvigorate adoption of home security, particularly among younger consumers.

“Consumers value security and safety use cases, but the security market has struggled to move beyond the traditional 20% penetration level in the U.S.,” Brad Russell, research director, Connected Home, Parks Associates, said in the announcement. “Aggressive moves by companies such as Ring, which launched its inexpensive Ring Protect DIY home security system in October, will help attract new and younger consumers into the security market. Ring’s pricing strategy also puts downward pressure on other players to lower prices.”

Parks Associates reveals that 37 percent of smart home device owners report safety is the main reason they purchased a smart home device and nearly 30 percent bought a smart home device primarily to monitor their home while away. The firm notes that DIY innovations with on-demand, no-contract monitoring options could help expand the market for device makers and for monitoring providers who seek inroads to young consumers.

“Samsung and ADT have joined forces for the ADT Home Security Starter Kit, which expands the self-installable DIY segment,” Russell said. “Meanwhile, hub-based security systems are an intentional strategy to stake out a controller position in the home for a variety of future device and service offerings.”

This latest Parks’ research comes on the heels of findings from London-based research firm IHS Markit, which estimated that in 2016 the Americas was the largest market for DIY security alarm sales, expected to grow at a 20 percent CAGR over the next five years.

Security Systems News is also looking at the impact of DIY on security in its latest News Poll.
 

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