Home Security Market Boom Attracts New Players
Tevin Wang | Date:
- Video monitoring and home automation features will expand the market beyond traditional security by 2016
- New Vendors — telcos/ISPs/cable TV companies- join the home security market.
- The DIY surveillance camera market is forecast to reach roughly $1 billion by the end of 2012.
US households are paying $10 billion annually for home security services, according to a Parks Associates study, with about 20 percent of the total households covered by 2015. Value adds such as video monitoring and home automation features will expand the market by 30 percent beyond traditional security by 2016. The cable/ISP companies like Comcast, Rogers Communications, Time Warner Cable and Verizon Communication are now offering similar services to their subscribers.
Vendors welcome these new “players” — telcos/ISPs/cable TV companies — with open arms. “The convergence of nontraditional industries and brands into this space means more choices for consumers, greater availability through new channels, and better overall awareness,” said Zak Wood, Director of Global Marketing, Trendnet.
These new players help create more market needs as they promote their own monthly offerings very aggressively. “As these companies have a broader reach and are better equipped to communicate with home users, more people now know what is possible and how home solutions can help in day-to-day life,” said Simon Carr, Commercial Director for Y-Cam Solutions.
“Compared to working with traditional channel partners such as resellers/dealers and retailers, working with telcos/ISP/cable companies requires more finesse and customizations in order to be better bundled into their service offerings for mass viewers and subscribers,” Jason Yeh, PM at Micronet Communications said.
Homeowners now have more access to consumer surveillance cameras. “We work with online portals, but we also rely on the expertise of security integrators for providing installation services for certain residential units and SMBs,” Carr said. “We're also working with telcos/ISPs/cable companies to reach out to a wider audience, and partnering up and developing with other technology companies that provide solutions that surveillance can connect seamlessly to, be it home automation or NAS options.”
If possible, let end users experience the cameras themselves, Joseph Cheng, GM for China, Edimax Technology said. “Do some research through official and unofficial demos or forums beforehand. Users should find a good vendor who is willing to work with you and take some time to truly understand your requirements, and determine their own trade-offs when playing with and selecting cameras.”
Some network solution providers are entering the home and SMB market, offering DIY kits plus basic video/storage management software and cloud service. “Users can remotely watch video by logging into specific websites with corresponding passwords,” said Tom Shih, CTO of Planet Technology. Other users could rely on telcos/ISPs/cable providers for their hosted service offerings.
Breadth of solutions and responsiveness to market needs are also key differentiators, Wood added.
The connected-home market is now evolving. “We've seen strong interest and noteworthy growth since early 2010. Across the markets where we sell our home security services, we estimate that we are second only to ADT in market share,” said Tim Thompson, VP of Telephony and Security Operations, Suddenlink.
Telcos/ISPs/cable companies are also making more waves in home security, offering DIY surveillance kits plus broadband subscriptions. One of their greatest advantages is their direct data pipeline. “Home networking and home surveillance could generate other promising opportunities,” Cheng said.
In order to stay in the game, security companies need to offer interactive security services before telcos/ISPs/cable companies take away all potentials. “You've got the top two cable companies in the U.S. offering a robust, interactive home security solution,” said Greg Roberts, VP of Marketing, iControl Networks. “It's critical that security companies adapt this technology to survive. Now!”
With increasing competition, traditional security channel players also need to adapt their mindset to cooperate with telcos/ISPs/ cable companies or provide even more customized home automation offerings.
The connected home is no longer just a concept. “We see substantial growth potential across all categories, and are projecting year-on-year growth of more than 50 percent for the next several years,” Wood said. “In the consumer segment, learning tools and consumer education will always remain key sales drivers.”