The percentage of U.S. households with professionally monitored services will expand to 30 percent by 2020, with consumer demand for remote monitoring, coupled with the expanding presence of broadband service providers, driving growth in the security market, according to Parks Associates.
In its new report IP-based Home Monitoring: Security, which analyzes trends driving the market in 2011 and beyond, the international research firm estimates U.S. security monitoring, representing 18 percent of U.S. households in 2010, generates up to $10 billion annually from service fees, and consumer demand will drive further market expansion.
One-third of U.S. consumers in broadband households find remote control of lights, appliances and thermostats via Web-enabled devices very appealing. Nearly 50 percent find email/text notification of smoke, fire, water, or gas leaks very appealing.
Parks Associates analysts say broadband providers are well-positioned to tap into this market due to their existing infrastructure and ongoing customer relationships, and their field operations can enable a range of digital home management services.
“With the popularity of smartphones, tablets, and other Web-enabled devices, consumers are carrying a link to their home systems,” said Bill Ablondi, director, home systems research, Parks Associates.
Widespread availability of broadband is also disrupting the traditional business model of security companies and introducing new competition from service providers, who are leveraging their networks to create new services and expand ARPU.
These Internet-connected security systems are bringing new customers into what was a relatively stagnant consumer base.
By Telecomlead.com Team