Demand for all-in-one smart home security systems and kits is expected to increase 26% from 2017 to $3.4 billion by year-end 2018 and eventually reach $4.8 billion by 2025. Home and rental insurance incentives will encourage a faster rate of adoption going forward. These and other trends are presented in Smart Home Security, a new study from The Freedonia Group, a Cleveland-based industry research firm.
Other factors driving gains include:
- competitive pricing
- consumer optimism about smart home devices overall and the potential solutions they may provide
- enhanced analytics features and IoT integration
- greater cost-effectiveness, ease-of-installation, and ease-of-use compared to traditional home security options
- increasing product visibility and consumer recognition
The most significant driver of consumer adoption is the potential cost savings. Not only are home insurers monitoring domotic data gathered by IoT devices to gauge a customer’s level of risk, reduce claims, and, in turn, lower premiums – homeowners are leveraging the data to prioritize maintenance tasks before they turn into expensive problems.
The convenience and low cost of all-in-one products compared to traditional systems encourage adoption among consumers who are less likely to invest in home security. Market competition and technological innovation resulting in the continual release of higher value-added devices with enhanced features will continue to exert downward pressure on prices for earlier-generation devices in the near term.
Smart Home Security (published 4/2018, 159 pages) is available for $2900 from The Freedonia Group. For further details or to arrange an interview with the analyst, please contact Corinne Gangloff by phone 440.684.9600 or email [email protected].
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