Security Systems News

APR 2017

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Connected home solutions still in early adopter phase By SSN Staff ROCHESTER, N.Y.—Although a ton of research has been coming out recently looking at the high ceiling for smart or connected home growth over the next few years—Parks Associates says that half of homes will have a connected product by 2020—a recent study by research firm Gartner Inc. finds that only about 10 per- cent of households currently have con- nected home solutions. Gartner found that adoption of "newer connected home solutions is still at the early adopter phase," a conclusion based on responses from nearly 10,000 people in U.S., the U.K. and Australia during the sec- ond half of 2016. According to the study, "connected home solutions" consist of a set of devices a n d s e r v i c e s that are con - nected to each o t h e r a n d t o the Internet and can automati- cally respond to preset rules, b e r e m o t e l y accessed and managed by mobile apps or a browser, and send alerts or messages to the user(s). "Although households in the developed world are beginning to embrace connect- ed home solutions, providers must push beyond early adopter use," Amanda Sabia, principal research analyst at Gartner said in the announcement. "If they are to suc- cessfully widen the appeal of the connected home, providers will need to identify what really motivates current users to inspire additional purchases." The survey found that home security alarm systems, the more established of con- nected home solutions, have nearly double the adoption rates (18 percent) of newer connected home solutions such as home monitoring (11 percent), home automa- tion or energy management (9 percent), and health and wellness management (11 percent). Overall adoption rates were 5 to 6 percent greater in the U.S., where they were first marketed. However, excluding home security alarm services for which a monthly fee is generally paid, solution providers may find monetizing connected services chal- lenging as the survey revealed that less than half of households currently pay for subscription-based home monitoring and automation/energy management solutions. "In the U.S., where the home monitoring industry is more developed, 59 percent of households with a home monitoring solu- tion indicate they do pay a monthly fee, thus proving they see value for these solu- tions," according to Gartner. "However, charging for subscriptions for home auto- mation/energy management and health and wellness solutions is more of a challenge since more than half of current house- holds are already using these services free of charge." Using a scale of zero to 100, respondents were asked about their feelings and prefer- ences toward the value of devices, appli- ances and applications in the connected home ecosystem. Three-quarters of respon- dents indicated they are happy to manually set temperature and l i g h t i n g c o n - trols versus only o n e - q u a r t e r who expressed an interest in having devices anticipate needs in the home. Furthermore, 58 percent of respondents showed a pref- erence for separate, independent, stand- alone devices. The study found that respondents are starting to see the value of one app for integrating their connected home devic- es, appliances and services as well as the importance of brand certification for their connected home devices and services. More than half of the respondents (55 percent) rated 51 or more toward the preference of one app integrating connected home devices and services, while 58 percent rated 51 or more toward the importance of hardware and services being certified by a specific brand. "Messaging needs to be focused on the real value proposition that the complete connected home ecosystem provides, encompassing devices, service and expe- rience," Jessica Ekholm, research direc- tor at Gartner, said in the announcement. "The emphasis needs to be on how the connected home can help solve daily tasks rather than just being a novelty collection of devices and apps." Ekholm will provide further analysis at the Gartner Tech Growth & Innovation Conference 2017 taking place June 19-21 in Huntington Beach, Calif. SSN Continued from page 26 doyle "So we are seeing some growing interest in home automation stuff, and we are providing some offerings to our customers," he continued. "We are also keeping an eye on the DIY segment that is emerging. We do not have an offering as of yet, but are contemplating that, as we think that that is an emerging distribution channel that we can do a great job with." On the commercial side, Doyle said that he is seeing increased demand from customers for video and access control services. This is the first acquisition in 2017 for Doyle Security Systems, which has been family owned and operated here since 1919. Doyle Security System's history includes a CSAA "Central Station of the Year award, the Better Business Bureau Torch Award and the Rochester Business Ethics Award." SSN "The emphasis needs to be on how the connected home can help solve daily tasks rather than just being a novelty collection of devices and apps." —Jessica Ekholm, Gartner WHOLESALE MONITORING FUNDING PROGRAM LOAN PROGRAM mPERS PROGRAM BULK ACQUISITION M2M COMMUNICATOR (855) 776-2210 www.dynamarkmonitoring.com info@dynamarksecuritycenters.com everything under one roof SECURITY SYSTEMS NEWS APRIL 2017 www.securitysystemsnews.com Residential s ystems 27

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