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Connected products driving smart home growth

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Wednesday, January 25, 2017

The vision of the truly intelligent home where your security system and all of its connected smart home devices, from Siri to your stove, can be controlled by your smart phone, is starting to become a reality.

This leap in technology is good news for the industry, and good news for dealers, who are finding that this brave new world of connected devices is fueling interest in security systems, especially from customers who want to know how the two can work harmoniously together. And this is making for “stickier” or more loyal customers.

Following Parks Associates’ research that came out of the Consumer Electronics Show earlier this month showing approximately 26 percent of U.S. broadband households today now own a smart home device—up from 19 percent at the end of 2015—several more studies on the growth of the smart home have popped up.

For example, a new report out this week from Zion Market Research, titled “Smart Home Market: Global Industry Perspective, Comprehensive Analysis, and Forecast, 2016-2022,” finds that the global smart home market—valued at around $24.10 billion in 2016—is expected to reach approximately $53.45 billion in 2022, growing at a CAGR of slightly above 14.5 percent between 2017 and 2022.

“The advanced technology has enabled various devices to be connected and controlled by one device and this technology is used by smart homes. Homeowners are enjoying more convenience and comfort from basic security monitoring and customized access to window coverings, appliances, lighting, irrigation, entertainment systems and many others," according to Zion. "Prominent drivers of smart home adoption are energy efficiency, home security, entertainment, convenience/productivity, remote health monitoring and connectivity.”

Speaking of connected home appliances, the U.S. market is expected to grow at a CAGR of 39.47 percent during the period from 2016-2020, according to another study released this week, this one by Wiseguyreports.com.

“Connected home appliance companies are focusing on the untapped consumer segments to boost market revenue,” according to the study. “The market is expected to witness rapid growth in the forecast period due to the increased awareness of connected devices.”

Just when you thought that there couldn’t be another report on connected home devices, there is even one on the global smart home shade market, which is also set to grow rapidly in the coming years. According to Technavio, the global smart shade devices market is expected to grow at a CAGR of close to 90 percent during the forecast period from 2017-2021. The study considers revenue generated from the business-to-consumer (B2C) and business-to-business (B2B) of smart shade devices to individual customers in the global market to calculate the market size.

Region wise, North America leads the market, holding a share of almost 50 percent in the market (2016 figures).

“The region is currently witnessing an increased adoption of smart homes and related devices, owing to the benefits associated with their use,” according to Technavio. “Additionally, consumers are increasingly adopting window-covering products that can be controlled automatically or by the intervention of electronic remote control equipped with wireless technology or by smartphones and tablets. These factors are impacting the high penetration rates of smart shades in the market segment.”

Research shows continued growth in smart home market

Parks Associates looks at where the industry is going at CES
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01/20/2017

DALLAS—Approximately 26 percent of U.S. broadband households today now own a smart home device, up from 19 percent at the end of 2015, according to new Parks Associates’ research that was announced at its CONNECTIONS Summit at CES in January.

Parks Associates: 10 top IoT trends

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Wednesday, December 21, 2016

Parks Associates recently released a whitepaper that discusses key trends in the IoT space for 2017.

“The Internet of Things is driving the reinvention of consumer technology and entertainment markets,” Brett Sappington, senior research director, Parks Associates, said in the announcement.

“New players and product categories are emerging that challenge traditional players with established business models and distribution channels. Online giants have the scale and technology to take risks in new areas of innovation. In some cases, these innovations are transforming whole sectors of the connected home,” Sappington continued.

According to Parks’ research, the average U.S. broadband household has “more than eight connected computing, entertainment, or mobile devices, plus another two connected home devices such as networked cameras, smart thermostats, or smart lighting.”

That strikes me as very interesting, as my household contains only about five—and, as a millennial, I feel more is expected of me there.

“Consumer interaction with the devices and services in their lives – at home, in the car, on the go – will continue to evolve in 2017 to be more personal and targeted,”  Jennifer Kent, director, research quality and product development for Parks Associates, said in a prepared statement. “Approximately 50% of U.S. broadband households plan to buy a smart home device in the next 12 months, and they will tie these devices to their mobile platforms, broadband connections, and other devices to create a singular but ever-expanding user experience.”

Below are the 10 trends Parks Associates noted on in their announcement:

1.         Voice control is vying to become the primary user interface for the smart home and connected lifestyle.

2.         The smartphone market plateaus, and mobile carriers experiment to retain subscribers, which will threaten fixed broadband services.

3.         CE manufacturers focus on new product categories and ecosystem strategies to compensate for stagnation in a mature market.

4.         Virtual and augmented reality gain a foothold in niche operations and greater awareness among early adopters, creating opportunities for social VR experiences.

5.         The differences between on-demand and live viewing continue to blur as consumers embrace a variety of OTT video services.

6.         Consumers increasingly expect connectivity in their cars, but pricing, safety, and data privacy concerns inhibit market growth.

7.         To cross the chasm, the smart home industry will continue to develop new use cases for security, peace of mind, and energy management.

8.         Insurers are exploring new business opportunities in smart home products and services and will continue to launch trials and new partnerships.

9.         Wearables and smart watches are expanding as healthcare tools and will be integrated with other IoT applications.

10.       Consumerization of healthcare services and devices drives integration with smart home ecosystems and new business models.

The whitepaper also includes a list of “Players to watch in 2017” for a variety of categories, including voice control, security and the smart home, connected health devices, and insurance and the smart home.

 

Study: Parks examines approaches to the smart home

Tom Kerber predicts open approaches to rise in user ratings
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12/14/2016

DALLAS—Parks Associates took a look at the smart home’s competitive landscape—and how providers should prepare for the market’s future—in its new report, “Smart Home: A Roadmap for Strategic Planning.”

Is the smart home window of opportunity closing for dealers?

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Wednesday, June 29, 2016

With more and more consumers adopting smart home technology, and more and more players moving into the smart home space, this is a pivotal time for security dealers, as the window of opportunity to reconnect with customers—and let them know about all of the interactive services they can now provide as part of the overall security package—will only stay open for so long.

In terms of smart home adoption, almost every day a new study comes out showing that Americans are embracing smart home technology. A recent survey of U.S. adults by Coldwell Banker Real Estate LLC and CNET finds that 28 percent of Americans own at least one smart home product and almost half of millennials are adopting the technology.

"Smart home technology is catching on because it is changing the way we live in our homes," said Robert Burns, president of Coldwell Banker Mid-America Group. "Not only is it shifting the financial perception of the home, but it's also transforming our emotional connection to our homes. We have entered a transformative era. We believe that in two to three years, homebuyers will expect smart home technology." 

Of the early smart home adopters, the research shows that 45 percent of Americans say that, on average, their smart home technology saves them more than $1,100 a year, while 72 percent say smart home products provide them with peace of mind when it comes to home security, and 81 percent said they would be more likely to buy a home if smart technology was already installed.

But while consumers are showing interest in, and adopting smart home technology, a recent study from research firm Parks Associates shows that less than 30 percent of U.S. broadband households are familiar with where to buy smart home products or services.

“In addressing the low consumer awareness for smart home solutions, all players have ample opportunities to make inroads in this early market,” said Eddie Accomando, research analyst, Parks Associates. “Roughly 40 percent of the U.S. broadband households familiar with smart home products or services learned about them from TV or the Internet. In 2016, we are seeing smart home companies develop more robust TV and Internet consumer marketing strategies to reach the consumers who don’t know where to buy smart home products.”

This is both good and bad news for security dealers, as this uncertainty of where to go for these products creates an opportunity for them to be that provider, as opposed to an MSO or a retailer.

According to Parks’ research, home security providers are not far behind retailers when it comes to being the likely purchase channel for smart home products and services, with 31 percent of broadband households preferring to buy these products from a home security provider, compared with between 35- and 40 percent prefering to buy from retailers, 23 percent from an Internet service provider, and only 12 percent preferring a pay-TV provider.

“To move the smart home from early adopters to the mass market, companies and industry players must address low consumer awareness,” Accomando said.

And this includes dealers, too, who must continue to reach out to their customers. As one dealer said during a session at ESX in Fort Worth earlier this month: “When I hear that one of my customers left us because they didn’t realize that we offer these smart home services, it keeps me up at night.”
 

Comcast and Alarm.com reportedly in talks to acquire Icontrol

Alarm.com could win ADT business if deal goes through
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06/15/2016

REDWOOD CITY, Calif.—Interactive services platform provider Alarm.com and cable giant Comcast are in talks to acquire platform provider Icontrol Networks, according to several sources who spoke to Security Systems News, and published reports.

Parks Associates asks consumers about the smart home

Survey says consumers with security systems show more intentions to buy into smart home
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04/25/2016

DALLAS—In a Parks Associates’ survey of homeowners with broadband connections, those with a security system were more likely to say they intend to buy a smart home device in the next 12 months.

Resi security industry preps for ISC West

New technology, meeting vendors tops ‘to-do’ lists
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03/16/2016

YARMOUTH, Maine—With ISC West right around the corner, Security Systems News asked some leading players on the residential security side to share their game plans for this year’s show at the Sands Expo in Las Vegas, April 5-8.

Initial research: Telecoms, cablecos responsible for half of new subscribers

Parks Associates' Kerber talks about interactive services, DIY, and new entrants in security
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03/09/2016

DALLAS—Interactive services, self-installed options, the presence of cable and telecom operators, new smart-home technologies—it truly is a pivotal time for the residential security industry. To help sort it all out, Security Systems News caught up with Tom Kerber, who leads Parks Associates research in the areas of home controls, energy management and home networks.

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