Smart home security set to leapfrog traditional systems

According to IHS Technology, traditional high-end domestic security solutions represented about 32 percent of the USA market for smart security in home automation applications in 2014. By 2018, the market share of traditional high-end is forecast to decline to about 22 percent. Contrary for service providers, which were estimated to represent about 38 percent of the market in 2014, are forecast to represent about 58 percent of the market by 2018. Device vendors are projected to expand penetration through 2016 before losing share. 

In its most recent report on residential security, IHS Technology outlined three main system types: traditional high-end, service providers and device vendors.   Traditional high-end systems are specialist whole home automation systems which are supplied by companies, such as AMX, Crestron and Control4, that provide an integrated suite of smart home products, controllers and professional installation and management services.  Service providers on the other hand are packaged solutions at relatively lower cost sold mostly through security service providers, communication service providers and utilities which provide full backend support. 

Most are professionally installed, by companies like Comcast, AT&T and ADT.   And finally, device vendors are individual modular smart home devices sold directly or through online/box retailers which includes Myq, Piper and Lowes Iris in the States.

IHS anticipates a slowdown for security hardware in traditional high-end systems due to increased competition. One of the biggest drivers for these high-end systems is video and remote monitoring via a tablet or smartphone. Even with the high-end installations, it is rare to have the security integrated into a ‘Jetsons-style home’ where television, lighting and audio sequences occur to thwart intruders. Furthermore, many of the traditional high-end installations are reserved (by price) for homes larger than five thousand square feet and mostly occur in new homes, not retrofit, limiting the opportunity in comparison to service providers.

Free Download: The Video Surveillance Report 2023

Discover the latest developments in the rapidly-evolving video surveillance sector by downloading the 2023 Video Surveillance Report. Over 500 responses to our survey, which come from integrators to consultants and heads of security, inform our analysis of the latest trends including AI, the state of the video surveillance market, uptake of the cloud, and the wider economic and geopolitical events impacting the sector!

Download for FREE to discover top industry insight around the latest innovations in video surveillance systems.

Download The Video Surveillance Report