Research firm Citigroup predicts that self-serve security solutions from tech firms like Google and Apple will make up 62.5 per cent of the home security market in 20 years.
Citigroup estimates that self-monitored systems will hold 62.5 per cent of the home security market in 20 years. Citigroup says younger consumers will be principle drivers of change.
Self-installed and self-monitored systems like Google’s Nest and Dropcam or Apple’s HomeKit-enabled devices allow users to set up their home security and use notifications to enabled devices to alert people. For these services, there is no monitoring of home security. While they only have 2.3 percent of the market, Citigroup predicts that it won’t stay at that level for long.
According to Citigroup, over the next 5 years, self-installed and monitored systems will control 34 per cent of the market, while traditional professionally installed and monitored systems will slip to 61.6 per cent.
Citigroup expects that in 20 years, market positions will switch, with self-monitored systems holding 62.5 per cent of the market and professional services making up 31.3 per cent.
However, Citigroup cited 2 reasons why consumers cannot count traditional home security systems out. First, connected-home devices have not shed the reputation of being complicated to install and operate. For example, if users want to connect a smart thermostat, they would have to install a home automation controller and then install the thermostat physically. Users would then have to link the thermostat with the controller, and learn how to operate the device.
Further, consumers are sensitive to up-front costs of automating the home all at once. With the benefit of purchasing services individually as a customer sees fit, comes the inconvenience and elevated expense of assembling a comprehensive DIY security system. ♦
