Subscribe to RSS - smart home

smart home

New resi research promising

 - 
Wednesday, June 28, 2017

U.S. households with professional security monitoring will generate nearly $14.7 billion in 2021, reaching a five-year CAGR of 4.7 percent from 2017-2021, according to Parks Associates’ Home Security NUMBERS research.

“Our last number from the fourth quarter of 2016 shows that 21.5 percent of broadband households, which is about 80 percent of overall households, have professionally monitored security,” Tom Kerber, Parks' director of IoT strategy, told Security Systems News. “So when you look at that number on an overall household basis, the number ends up being around 18.8 percent that have professionally monitored security.”

That is approximately 22 million households, and by 2021 Parks estimates that number will rise to 26.6 million, or 21.6 percent of households overall, having professionally monitored security, representing an approximately 3 percent growth rate.

“Over the last decade it has never been close to that 21.6 percent number,” noted Kerber. “In 2010, the number was 13 percent, so that is strong growth. Although from a conventional wisdom perspective it doesn’t sound like much, it is substantial. We had significant recovery from the recession from 2013-15, and now the growth is more modest, but it is still growing.”

When asked about the impact of the telecoms into the space, Kerber noted that Comcast is making waves.

“Comcast when they went public with their subscriber count at 957,000 as part of their annual reporting, that was substantial, representing a 40 percent growth over the prior year,” he said. ”Whether it is bundling with their core services, or subscribing people when they move, or more aggressive sales tactics mixed with their call center operations, they obviously have figured out how to move the needle in a substantial way. At a million subscribers, they are equivalent to Moni, or Vivint to some extent. So you can’t discount that type of success.”

He continued, “Telecoms, led by Comcast, are growing at a faster rate than the market is growing, so they are gaining market shares. And when we look at some of the smaller players, they are not growing at the same rate as others in the market, and we are trying to understand why this is happening through some current research that we are doing.”

Dina Abdelrazik, research analyst, Parks Associates, told SSN that some of the smaller local dealers “are a little more hesitant to provide smart home controls. I don't know if it is more of an infrastructure basis—they don’t have the employees to do so or the technological savvy to do so—but they are falling behind in terms of providing these controllers in the home that consumers are actively asking for. So, of course, if consumers can’t find it through their local dealer, they are going to look to those who can provide it for them.”
 

Battle for the smart home continues

 - 
Wednesday, June 7, 2017

With the invasion of the telecom companies into the smart home space, security dealers have been faced with new challenges and battles as they try to compete for new business created by this new era of smart home connectivity and automation.

Whereas in the past when customers would turn to their security provider first to ask about smart home products, a new report from research firm Parks Associates shows that there has been a shift in homeowners’ purchase behaviors. Among current smart homeowners, 26 percent purchased their device from a retailer such as Home Depot, Walmart, or Sears, followed closely in second by security dealers, with approximately 20 percent purchasing these products through them.

Homeowners now have “more options, increased personalization, and enhanced value across the full spectrum of IoT experiences,” Dina Abdelrazik, research analyst, Parks Associates, said in the announcement of Parks’ annual report, Global Connected Living Outlook 2017: Building on the IoT. “Following early disruptions, many players are now rising to the challenge to create competitive solutions that better accommodate the needs of the connected consumer.”

Although the big retailers are getting a bigger portion of the pie, they are also raising awareness and educating the public, which is creating additional opportunities for dealers to be the channel through which smart home owners purchase all of these interconnected devices, many of which work in tandem with security systems and services.

For example, additional Parks’ research, which was unveiled at the firm’s 21st-annual CONNECTIONS Conference in May, shows that two-thirds of smart homeowners and shoppers want crossover applications that integrate with their home entertainment devices.

“Key crossover use cases include safety and security alerts popping up on a smart TV and video from networked cameras shared across the connected screens in the home,” Elizabeth Parks, senior vice president, Parks Associates, said in the press release. “In both cases, two-thirds of smart home owners and shoppers find these features appealing.”

Security dealers can also provide homeowners with a better level of interoperability and network security and stability, as Parks found that as more products are purchased standalone and then brought into a connected home, the risk of fragmented consumer IoT experiences increases.

“As consumers become more connected, their digital lives in many ways become more complicated, and solving this potentially fragmented consumer experience, addressing privacy concerns, and crossing traditionally separate boundaries will be the dominant challenges for companies in 2017 and 2018,” Abdelrazik noted.

Security dealers can and should be the ones to solve this problem, and from my conversations with dealers, many already are doing this, providing security as well as support, guidance and options to be that smart home provider as well.

Parks Associates’ annual conference set for Silicon Valley

Research firm says recurring revenues from smart homes will exceed $1 billion by 2021
 - 
05/17/2017

DALLAS—Nearly 38 million U.S. households will have a smart home controller by 2021, generating more than $1.2 billion in recurring service revenue, according to research firm Parks Associates, which is hosting its 21st annual CONNECTIONS: The Premier Connected Home Conference, May 23-25, at the Hyatt Regency San Francisco Airport.

Smart home product sales soaring

 - 
Wednesday, February 15, 2017

Smart-home product U.S. dollar sales grew 57 percent in 2016 compared with the prior year, according to recent findings from market research firm The NPD Group.

According to the study, security and monitoring products led the category, making up more than 60 percent of dollar share, with smart entry devices, such as smart doorbells, growing 171 percent in dollar sales and 206 percent in unit sales compared with 2015.

The market research firm said awareness levels of smart home devices have fluctuated, but cited the smart doorbell as a category that witnessed growth in both awareness and ownership; ownership of smart doorbells inched up 2 percent while awareness grew 4 percent.

According to IHS Markit, the global market size for video doorbells, which was at $78 million in 2015, is expected to experience a 28 percent CAGR over the next five years, with North America leading the way.

Video doorbells, many times, are a homeowner’s first foray into video surveillance in and around the home.

“Video doorbells are only just beginning to gain traction among residential consumers,” Anna Sliwon, analyst, residential security, IHS Markit, said in the study. “As the market continues its rapid ascension, partnering with video doorbell providers could prove lucrative for home alarm manufacturers and service providers.”

In the NPD study, networked video cameras led as the most commonly found product in smart homes. Nearly one-third of smart homes owned a networked video camera, and demand for multipacks of IP cameras grew 129 percent in dollar sales for the year.

“Network cameras have long been considered the entry point into the smart home, but growing demand for items sold in sets shows that the market is maturing,” Ben Arnold, executive director, industry analyst for The NPD Group, said in a prepared statement. “We fully expect the next two years will see a broadening appeal of smart-home devices and estimate that the category will nearly double in that time.”

Voice command is also becoming more commonplace in smart homes, with nearly half of these homes using voice commands in some manner, and one-quarter using them to control a home-automation device, with Siri being the most commonly used digital assistant, according to NPD.

John Buffone, executive director, industry analyst, NPD Connected Intelligence, said one in five Amazon Echo owners use the device to control another device in their home.

Connected products driving smart home growth

 - 
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.”

Global smart home market to see strong growth

Americas region to grow at a CAGR of 32.43 percent
 - 
09/14/2016

LONDON—The global smart home M2M market, which was at $19.5 billion in 2015, is set to grow to $96.5 billion by 2020, at a CAGR of nearly 35 percent, according to a recent study from global research firm Technavio.

Is the smart home window of opportunity closing for dealers?

 - 
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.”
 

Smart home wars heating up

 - 
Wednesday, June 22, 2016

Just as we have seen with the smart phone revolution, the battle for the smart home looks like it will be just as hotly contested, as there is no denying that consumers today are embracing the smart home concept. 

Studies are popping up weekly confirming that demand is increasing for smart home products and services as homeowners learn more about smart home and home automation technology available today.

The latest research, from market research firm Berg Insight out of Gothenburg, Sweden, shows that North America is leading the global smart home market with 12.7 million smart homes in 2015, a 56 percent year-on-year growth. According to the research, the strong market growth is expected to last for years to come, driving the number of smart homes in North America to 46.2 million by 2020, which corresponds to 35 percent of all households.

The study found that the most successful products in the smart home market include smart thermostats, security systems, smart lighting, network cameras, and multi-room audio systems.

“There is no doubt that regular consumers in the future will own and operate a wide range of connected objects in their homes, from connected home appliances and luminaires to thermostats and security devices,” said Johan Svanberg, senior analyst, Berg Insight. “Attractive use cases, interoperable devices, and well-implemented user interfaces are needed in order to accelerate the market.”

Although Amazon Echo’s Alexa is leading the smart home charge right now, Apple is making a serious play with its announcement at its Worldwide Developers Conference last week of its new app called Home, which will be a hub on the iPhone for all the connected devices in the home. The app is the logical next step for Apple’s HomeKit platform, and both work with Siri, who is getting some improvements and upgrades as well.

Apple also announced that it is working with homebuilders—Brookfield Residential, Lennar and KB Home—to build homes later this year that come with built-in Apple HomeKit infrastructure.

Other major players in this battle for the voice-driven smart home include Microsoft with its Cortana voice platform, and Google Home’s Assistant, which was announced in May. Rumors abound that both Microsoft and Google, like Apple, are gearing up for a serious play for a piece of the smart home market. 

Apple’s brand equity with consumers, though, shouldn’t be ignored, as it is not a big leap to think that consumers would be willing to take the plunge into the smart home market with Apple, a company they know will be able to provide a complete, somewhat air-tight system from the ground up, so to speak.

One negative for Apple is its seemingly late entry into the smart home space, where many early adopters are already using many smart home products that will not work with Apple’s HomeKit platform, which requires using a special encryption chip. Some HomeKit-certified products are currently available from companies like Honeywell, August and Phillips Hue, and Apple said that there are close to 100 more compatible products coming this year.

Stay tuned, because things are starting to get interesting in the smart home space.

Smart home mania or madness?

 - 
Wednesday, June 1, 2016

With the flood of new smart home products hitting the market these days, one of the things I look forward to each day is checking my Google Alerts to see what new surprises this wild west of home automation and connectivity is bringing us now.

From smart toasters that tell you when your toast is ready, or if you like, that toasts the past night’s sports scores right onto the bread for you, to a smart-fridge that tells you when you need more milk, the number and volume of new smart home products hitting the market today is staggering. And, to say the least, a little befuddling, like the smart grill that tells you when your steak needs to be flipped, or the smart coffee maker that texts you when your coffee is ready, or … brace yourself … the smart tampon that reminds you when it is time for a change—huh?

As one of my SSN colleagues pointed out, you have to wonder if consumer interest and demand is driving this innovation or if companies are just throwing stuff at the wall to see what sticks. We both agree that more often than not, it is the latter.

The latest innovation, and I have to say I am surprised it has taken this long, is the smart home robot named ZenBo, which is basically Amazon Echo’s Alexa on wheels. ZenBo, and other robots like it that will surely flood the market in the coming months, can turn on your lights, walk you through a recipe, remind you to take your medicine or even read a bedtime story to your kids, if that idea doesn’t freak you out as much as it does me.

For every convenience that a product like ZenBo can provide to a family, you have to wonder if we haven’t flipped open the lid on Pandora’s box. When will the madness end, and how are dealers to make sense of all of these new products hitting the market?

For every interesting new product I read about, like the smart go-cart that Tony Fadell, co-creator of Nest, is designing to allow parents to geofence where their kids will be able to drive, there are five to 10 other new products that make you shake your head.

When it comes to sorting through all of this and figuring out what is viable and what is just, hmm, let’s say—insane—it is important for dealers to ask themselves: Will my customers be interested in this or are these companies creating a problem where there isn’t one just to sell another clever smart home product?

 

A 'smart home' snapshot

 - 
Wednesday, May 25, 2016

The Smart Home 360 report, which comes out today from the market research company Argus Insights, provides a snapshot of what is out there in the smart home market today. The study looks at changes in the market from March to April, as well as overall trends Argus researchers are seeing within the quickly emerging and maturing market.

I caught up with Argus Insights CEO John Feland, who pointed that because the smart home market is changing so fast, “we are continuously pulling data around the marketplace from consumers on what is working and what is not.”

Overall, Feland said that Argus is seeing “year-over-year growth" within the smart home market, and equally important, the data is showing that security is still vitally important with consumers when it comes to taking that first plunge into smart home offerings.

“Home security is top of mind,” said Feland. “For those who are in the ‘do it for me’ category, the gateway use-case is security, so that is still what is selling and driving [smart home] adoption.”

And there is even more good news for traditional security dealers: For the ‘do it for me’ group, which is professional-installer based, the data is showing that when consumers try to do it themselves “they have been frustrated,” said Feland. When they work with a local dealer/installer, the “outcomes have been much better,” he noted.

From an installer’s standpoint, Feland said the key to getting someone to start on that smart home journey is simplifying the initial process for customers while providing a system that can seamlessly integrate smart home connectivity and capabilities without any headaches for the end user.

In the area of home automation, “If they [dealers] are not talking to their customers about Amazon Echo, they are not doing their job,” said Feland. “Amazon Echo is still a leader, and Alexa is still the voice in people’s homes, but we will see what happens when Google launches its product.”

In the DIY space, Feland noted that dealers should pay close attention to consumers’ frustration with the lack of support they are getting on the retail side. “If you look at where they [retailers] are failing right now, that presents an opportunity for traditional dealers to be that second date that leads to marriage.”

The report, which Argus released a sample section of today, is also available for purchase.
 

 

Pages