As the home security market continues to evolve, so do its customers. Today, a new generation of consumers is taking control of their homes and turning them into smart, internet-connected hubs that can be controlled by taps on a phone screen.
It’s an exciting time for consumers, because smart home automation products are no longer exclusive to wealthy homeowners. Now, smart devices can be used in rented spaces to enhance the occupants’ control over the inner workings of their personal devices.
Let’s take a look at how this accessibility is changing the home security market:
Home Security Market Value
Security, and smart home system installers can rejoice, because by 2023 the market is slated to be worth more than $74.75B, according to a report by MarketsandMarkets. And between 2015 and 2020, the market should have a compound annual growth rate (CAGR) of 8.7%.
Home Security In The Americas
Globally, the Americas have the largest market share of ~61% for smart home security products. It goes to show that American consumers are taking these products seriously. Interestingly enough, consumers are increasingly buying security products despite an overall decrease in crime rates.
Interestingly, system breaches and privacy threats are not serious deterrents to current purchase patterns. However, continued breaches could prove fatal to individual company successes as the rest of the market continues to grow.
Let’s take a look at features consumers look for in smart home security products
Cloud Solutions
Today, life is most convenient when it’s managed in the cloud. Because of its universal accessibility and limitless storage capacity, the cloud has several applications that help enhance consumers’ lives.
Home cloud solutions provide three types of digital management capabilities:
- Content (video, music, images)
- Productivity (email, documents, contacts, calendars, etc.)
- Sensors (smart meters, health devices, security systems, etc.)
Increasing the amount of data, primarily video, is creating a strong demand for remote storage and access. In addition, managing smart home applications through the cloud creates convenient methods for consumers to have more control.
Remote Control
The days where people asked whether or not they left the living room lights on after leaving on vacation are over. Now, consumers want the ability to manage their smart home devices remotely. So, when they take a long weekend, they can easily turn off or change settings on the thermostat and other smart devices.
Low-Cost DIY Solutions
Consumers want low-cost solutions, and they have several places to find the best deal. Brand-name products like Phillips, Nest, and more have to compete with low-cost alternative brands from stores like Amazon, where comparable options are sold at fractional costs.
Discounts & Rebates
Today’s consumer is often motivated to purchase smart home products because of rebates they can qualify for from power companies, apartment complexes and even insurance companies. New, smart thermostats help consumers save money on their power bill while security products reduce insurance risk, and companies are willing to reward risk-prevention behaviors.
Home Security Market Opportunities For Installers
Home security installers have several recurring monthly revenue (RMR) opportunities they can take advantage of to get the most out of the market.
New Housing Developments
As new housing developments are constructed, contractors are often looking to create long-term relationships with installers who know smart home products. So, when they begin constructing a new development with 50-100 new homes, installers with the right industry relationships are guaranteed high paying work with the opportunity to add professional monitoring.
Become An Authorized Amazon Installer
The new smart home market is merely getting its start, and consumers are purchasing billions of dollars worth of products each year. Instead of trying to fight the smart home market, installation companies can take advantage of the wave by becoming a professional Amazon installer. By doing so, installers get free leads for their business through Amazon. But, it’s not for everyone, and there are a few things to know before becoming an Amazon pro installer.
In Conclusion
The security market is predicted to continue growing at breakneck speeds, and installation companies have more opportunities than ever before, but it requires adaptation to new buyer demographics, product types and lead generation strategies. While the new market segments may not be producing as many recurring revenue streams per installation, upsell opportunities have increased as well, and strategic methods of securing the right accounts will separate the installation companies that succeed from those that thrive in the new market conditions.
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