Knowing for sure what the long-term impact of the coronavirus pandemic will be on the home security market may be hard, but market researchers believe that the impact will be positive, despite some early minor disruptions.
The home security market has not remained untouched by the coronavirus pandemic. The disruption was sudden and reactionary, but it is not expected to affect the market negatively in the long-term.
In fact, some consumers are spending more money on home improvement projects — including smart home and home security — during the pandemic. Blake Kozak, Senior Principal Analyst of Smart Home and Security Technology at Omdia
, explained this is because consumers are not spending money on traveling, eating at restaurants or other forms of entertainment, which leaves more disposable income for household projects.
Positive long-term impact to home security
Thus far, the importance of home security as an essential service appears to have been validated by COVID-19. This is especially true of interactive systems that can deliver the added value of convenience and comfort in the home.
“As the home experience becomes even more appreciated due to COVID-19, consumers will invest more deeply in protecting and outfitting their homes,” said Brad Russell, Research Director for Connected Home at Parks Associates
Kozak also explained how the long-term impact could be positive if service providers take advantage of the new gaps in coverage.
“For instance, aging-in-place (senior care)
has mostly relied on personal emergency response systems (PERS)
. However, this is the right time to start pushing and offering connected home systems that can monitor the behavior and patterns of seniors in a passive, non-invasive manner,” he said. This is particularly important since seniors are more vulnerable, making social distancing and being able to monitor and provide care at a distance critical.
For home security systems, the long-term impact relies heavily on what the new normal looks like. “If employees continue to work from home
and school children rely on remote learning
, then the use cases and implementations of the smart home and home security will need to change,” Kozak said.
Regardless, security companies should look to expand the ecosystem beyond security applications. “If consumers are home more often, the need for energy management
, circadian lighting and air quality will become more important, so those providers that can offer an end-to-end solution covering multiple use cases will find the most success, post-COVID,” Kozak added.
Growth for home security hardware post-COVID-19
In terms of home security device adoption from February 2020 through July 2020, Omdia has observed that device manufacturers have not seen significant changes. Interest in devices such as routers, gateways, indoor air quality sensors and thermostats have risen, while some manufacturers have seen fewer camera sales since consumers are home more often.
However, the research company expects that COVID-19 could generate a spike in new demand for cameras and other security devices as families look to reduce uncertainty. It was also suggested during interviews that many consumers may avoid cancelling services or even installations due to additional fees that could be applied once a contract is signed, according to Kozak. This could especially be the case when consumers take advantage of financing for home security hardware.