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Parks Associates

Value add-ons give dealers competitive advantage

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03/20/2019

DALLAS—The annually published “Security Dealer Survey” by Parks Associates, a market research and consulting company that covers the residential security industry from both a consumer and dealer perspective, found over 70 percent of U.S.

In the home, voice is king

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Wednesday, February 20, 2019

The success of smart home assistants such as Amazon Alexa has spurred the growth of smart speakers within the home, as voice control in the home seems to be a trend that is not going away any time soon.

In fact, the adoption of these devices increased by 800 percent from 2016 to 2018, reaching nearly one-third of U.S. broadband households by the end of 2018, according to research by Parks Associates.

In the firm’s “Strategies for Integrating Voice in the Smart Home,” report, it estimates U.S. households will buy more than 64 million smart speakers with voice assistants in 2022. The research profiles key technology partners that can help companies integrate voice and evaluates different strategies for implementation.

“Voice is emerging as a key complement to smart home device adoption and ownership, as it provides a simple method of interaction and creates opportunities for a centralized user interface and interoperability among multiple devices,” Dina Abdelrazik, research analyst, Parks Associates, said in the announcement. “The next step will be integration of voice among multiple device categories, which will help to alleviate smart home fragmentation.”

Use of voice in conjunction with smart home devices is increasing. The report finds 21 percent of smart homeowners have used voice to turn their devices on/off, while 18 percent have used voice to check a device’s status. With voice popularity and use cases expanding, device makers and service providers are looking to capitalize on the current market opportunity by integrating a voice experience with their current offerings. The first decision a company must make before doing so is to decide whether to create its own proprietary solution or to integrate with a readily available  solution.

“Major tech giants have entered the voice-first market providing companies with the opportunity to leverage their voice-based solutions, with Amazon and Google leading the market,” Abdelrazik said. “They have made it easier for companies to enable voice-based solutions while creating competition for consumer mindshare, with Apple, Samsung and Harman Kardon promoting their own solutions in an increasingly crowded market. This diversity gives companies more choices when considering partnerships or whether to develop their own proprietary in-house solution.”

Parks Associates will host CONNECTIONS: The Premier Connected Home Conference on May 21-23, 2019, in San Francisco, where analysts and IoT executives will examine the impact of voice along with other solutions in shaping demand, adoption, and new business strategies within the smart home  ecosystem.

Further validating the growth of smart speakers, IHS Markit recently released its report on this growing trend.
 

Parks Associates addresses key trends at Summit

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01/16/2019

LAS VEGAS—Leading smart home and consumer IoT industry executives came together here for Parks Associates’ CONNECTIONS Summit on Jan. 8, the first day of the Consumer Electronics Show (CES).

Integration of smart devices key to driving RMR growth

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12/19/2018

DALLAS—New research from Parks Associates shows the integration of smart home products will be key to drive new recurring monthly revenue (RMR) growth among security companies.

Parks looks at IP camera sales, DIY’s impact

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Wednesday, September 19, 2018

An estimated 7.7 million standalone and all-in-one networked/IP cameras will be sold in the U.S. in 2018, with $889 million in revenues, according to research from Parks Associates entitled Smart Product Market Assessment: Networked Cameras.

“Networked cameras have experienced a positive growth rate over the last year—2018 is expected to witness a roughly 11 percent increase in unit sales from the year prior,” Dina Abdelrazik, research analyst, Parks Associates, told Security Systems News. “Overall, the broadband household penetration rate is estimated at 9 percent in 2017 and is expected to nearly triple by 2023. Furthermore, the CAGR rate for all-in-one camera purchases from 2018 to 2023 is about 19 percent.”

Abdelrazik noted that advances in image recognition and ease of self-installation, combined with a strong user experience, “are driving increased adoption, with retail channels (online and in-store) starting to dominate sales,” she said. “IP cameras are key security-related devices and provide peace of mind to consumers. As such, these devices are consistently among the most popular smart home devices.”

While retail channels dominate (approximately two-thirds) in terms of channel purchase locations for consumers, security dealers were the next option, followed closely by “broadband service provider” and “direct from manufacturer.”

According to Parks’ findings, DIY cameras represent the majority of sales as these products are improving consumer experiences for installation, setup and usage. The good news for security dealers is that consumers still value recommendations and setup assistance, as 7 out of 10 consumers planning to buy a networked/IP camera would consider recommendations from an insurance or security company to be “important or very important,” according to Parks.

“Standalone IP cameras, video doorbells, and all-in-one cameras all provide an added layer of security for the home alongside security systems,” said Abdelrazik. “Security dealers have an opportunity to offer these products during their sales or installation processes to educate the consumer on the value of the device, as well as enhance the overall utility of the security system.”

She continued, “The attachment rate of video cameras and home control products to new security systems continues to climb, as does the incremental RMR from video services. Video provides unique value to consumers. Once consumers have the ability to check in to see a live view of their home from anywhere in the world, it is hard to give up that experience.”

Parks’ market assessment notes that voice integration and the development of AI as it relates to image and sound recognition will drive the next generation of networked cameras. For example, more than 80 percent of consumers who own or plan to buy a networked camera consider image or sound recognition abilities to identify safety and security events (like glass breaking or a person falling) to be appealing or very appealing, Parks found.

Looking forward, Abdelrazik said AI and the integration of voice control “will help drive further engagement with consumers, which will continue to drive positive consumer experiences. While consumer privacy concerns do exist with networked/IP cameras, we project double-digit growth for the IP camera market, as consumer familiarity rises, price points continue to drop, and millennials buy homes, acquire pets, and begin having families.”

Parks studies IoT interoperability and customer expectations

43 percent of survey respondents see Amazon Echo integration as important
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08/08/2018

DALLAS—Parks Associates released a report, titled “Interoperability and the Internet of Things,” that said voice control integrations are high on consumers’ wish lists when it comes to new smart devices and most consumers only have one smart device, among other findings.

Parks announces keynotes for connected home conference

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03/28/2018

DALLAS—Parks Associates, an IoT research firm based here, recently announced the full keynote lineup for its 22nd annual CONNECTIONS: The Premier Connected Home Conference, May 22-24 in San Francisco, which features executives from Comcast, Google, Intel, Samsung and T-Mobile.

AI and smart homes: We may not notice the future

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03/28/2018

The Jetsons are not walking through your front door anytime soon. Or perhaps they’re already here and you don’t remember life without them. That’s the way technology blends into our lives, often without a formal invitation. The security industry knows this.

Parks Associates looks at smart home market, company tactics

Sixty percent of respondents to a Parks Associates survey say they don’t need to remotely control their devices
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02/14/2018

DALLAS—Parks Associates, a research firm based here, released a report that outlines how the smart home market and its products are changing and what companies are doing about overcoming barriers, entitled “Evolution of Smart Home Products and Services.”

Parks Associates predicts about 27 percent of U.S. households to have security by 2021

Home security market to see 3.7 percent CAGR in number of broadband households with security
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01/18/2018

DALLAS—Parks Associates recently published a report, “Home Security: Market Sizing and Forecasts,” that outlines the firm’s expectations in the market between 2017 and 2021.

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