Smart residential security equipment achieves ‘lift off’ in US, says IHS

Blake Kozak, principal analyst - Security & Building
Technologies, IHS Technology

For the smart home market, 2015 will be viewed as a launch-pad year for many suppliers. Although most of the top security device vendors have had smart devices in their portfolios from previous years, it was only last year that device suppliers moved to retake the ecosystem. So says Blake Kozak of IHS in a new research note.

Despite providing smart or connected motion sensors and door and window contacts, device suppliers have been slowly losing revenue, because service providers no longer need to use one brand of equipment for an entire residential-security ecosystem. As a result of this market shift, Tyco (DSC), Bosch and UTC, and other companies launched, or announced they would be launching, panels and equipment. They did so to help regain and sustain their market positions. which had been challenged by the likes of Cisco and Technicolor, as well as by 2GiG and other traditional security vendors specialising in smart devices.

In the most recent IHS residential security analysis of the American region, the combination of professionally monitored smart and connected device revenue is expected to have a compound annual growth rate (CAGR) of 20 percent from 2014 through 2019. Smart devices are forecast to account for the bulk of growth (compared with connected devices) with 72% expected in 2016.

As equipment vendors and service providers compete for market share in 2016, there will be ample opportunity for both professional and do-it-yourself (DIY) devices. The market for professional devices, including traditional, smart and connected security devices, in the American region is forecast to reach $1.4 billion in 2016, an increase of about $120 million from 2015. In comparison, the DIY market for connected and smart DIY devices is forecast to be worth about $570 million in 2016. When non-connected DIY devices are included, the total market will inflate to nearly $1.6 billion in 2016.

Overall, 2016 will be an interesting year for smart home security devices, as the industry contends with consolidation of standards, new ecosystems (such as IKEA), encryption and the continuation of the Google Thread and Apple HomeKit experiment.

Terminology note: “Smart” and “connected” residential devices include intruder alarms, entrance controls, hazards, video cameras and electronic locks. “Traditional security” refers to professionally installed security solutions with only local-management capabilities. “Connected security” (also known as “point solutions”) are devices that can be remotely managed. “Smart home” devices communicate with each other and require limited user intervention to generate a desired scene.

The author is Blake Kozak, principal analyst – Security & Building Technologies, IHS Technology.

Comment on this article below or via Twitter: @IoTNow_ OR @jcIoTnow

RECENT ARTICLES

DANA bolsters financial inclusion in Indonesia with HERE Technologies

Posted on: August 9, 2022

Jakarta, Indonesia. 04 August, 2022 – HERE Technologies, the location data and technology platform, announced that DANA, one of Indonesia’s digital wallet services, is utilising HERE location services to bolster inclusive financial services in the country.

Read more

Putting fleets in the fast lane: AT&T Fleet Complete launches FC Hub, a suite of next-gen fleet management tools

Posted on: August 9, 2022

Dallas, United States. 05 August, 2022 – Fleet Complete is introducing AT&T Fleet Complete FC insights solution suite, a big data IoT platform with web and mobile apps for fleets to monitor and manage all aspects of their mobile operations.

Read more
FEATURED IoT STORIES

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more

What is IoT?

Posted on: July 7, 2019

What is IoT Data as a new oil IoT connectivity What is IoT video So what’s IoT? The phrase ‘Internet of Things’ (IoT) is officially everywhere. It constantly shows up in my Google news feed, the weekend tech supplements are waxing lyrical about it and the volume of marketing emails I receive advertising ‘smart, connected

Read more
IoT Newsletter

Join the IoT Now online community for FREE, to receive: Exclusive offers for entry to all the IoT events that matter, round the world

Free access to a huge selection of the latest IoT analyst reports and industry whitepapers

The latest IoT news, as it breaks, to your inbox