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Parks Associates

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.

DIY's impact on security significant

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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.
 

Smart devices increasing within home security

New Parks’ research examines adoption of smart door locks, lights and thermostats
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09/13/2017

DALLAS—New research by Parks Associates reveals that 42 percent of new security installations include a smart home device such as a door lock, light or thermostat.

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