Security Systems News

OCT 2017

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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Page 31 of 54

IoT study finds consumers embracing connected lifestyle By SSN Staff LOWELL, Mass.—A survey of 1,000 peo- ple by Internet of Things technical ser- vices provider PlumChoice finds that an overwhelming majority not only know what a smart device is but also already own a connected device. According to PlumChoice's 2016 IoT Adoption Bench- mark Report, 97 percent of people said they were aware of smart devices, with 79 percent owning at least one smart gadget. Consumer adoption of the Internet of Things took a "quantum leap forward" in the last 12 months, the authors of the report said. On a global level, around 80 million smart home devices were deliv- ered to consumers in 2016, according to market research cited by Plum- C h o i c e — a y e a r - o n - y e a r increase of 64 percent. " L a s t y e a r w a s a p i v o t a l y e a r f o r t h e s m a r t h o m e industry, with the number of people who own a smart device increasing by a staggering 259 percent," PlumChoice's vice president of IoT Noelani McGad- den, said in the press release. "As smart home device adoption continues to grow, brands must cater to consumers who are expecting support services as part of their purchase, and at the very least provide installation support." According to the survey, the focus is firmly on how consumers can benefit from integrating smart devices into their lives. In 2015, 78 percent of people surveyed by PlumChoice said that they did not own a connected device. Just more than 12 months later that number has shrunk to 19 percent. An easier life was the most popular option—71 percent of people cited this as the reason for owning a device in the first place. People also cited energy effi- ciency, smart home control and "fun" as reasons to invest in smart devices. With that in mind, the most popular devices were smart TVs, fitness bands, smart cameras and smart watches, the study found. The study found that the key to increased adoption is the potential for device interconnectivity. "Around 61 percent of people said that some of their devices worked with other prod- ucts but a recurring problem in the Internet of Things is the ecosystem has a fragmented nature," the authors noted. "The consensus is the increased aware- ness of devices such as the Amazon Echo or Google Home will act as a catalyst towards a more consolidated ecosystem in the near future." The report also found that 91 percent of people who already own a connected device would buy another smart prod- uct within the next two years. In 2015, t h e n u m b e r of people who said that they p l a n n e d t o make a smart d e v i c e p u r - chase by 2017 w a s 2 6 p e r- cent, the study found, and this number doubled in 2016 to 52 percent. In terms of demographics, the study noted that most smart device owners are under 45, although 60 percent of people aged over 55 said they owned at least one smart product. Around 86 percent of renters said that they owned smart devices, compared to 75 percent of peo- ple who owned their own homes. Although 37 percent of people said that they had no qualms about buying a smart device, the current ecosystem was a barrier to adoption, according to the study. The number of available products or solutions is not likely to diminish, which means that smart home solutions must demonstrate tangible or specific benefits, the report said. The fact that consumers are hold- ing off on integrating smart devices into their daily lives because they are "confused" is a hurdle that needs to be cleared, the report said, noting that to alleviate the confusion brands need to not only educate the potential customer but also ensure that the connected expe- rience is seamless from day one. SSN Continued from page 24 PARKS interactive services is apparent, as dealers recognize and acknowledge the positive impact on attrition rates, the ability to drive higher RMR, and the ability to attract new customers to the security market," she said. In terms of the overall penetration rate for security in the home, Parks Associates estimates the presence of a working security system at 23- to 25 percent of U.S. broadband house- holds and the presence of profession- ally monitored security at 21- to 22 percent, with professional monitoring yielding nearly $11.7 billion in annual revenue in 2016. In addition, Parks found that refer- rals were an important factor for 66 percent of potential security system consumers who prefer a local company. Parks' Competition in Residential Security study analyzes the changing landscape of the professionally moni- tored arena and assesses key industry trends, providing a working knowl- edge of today's U.S. residential secu- rity system market, its players, and the market dynamics affecting the industry. SSN "Last year was a pivotal year for the smart home industry, with the number of people who own a smart device increasing by a staggering 259 percent" —Noelani McGadden, Plum c hoice WHOLESALE MONITORING FUNDING PROGRAM LOAN PROGRAM mPERS PROGRAM BULK ACQUISITION M2M COMMUNICATOR (855) 776-2210 everything under one roof S ec U r I t Y SYS te MS N e WS october 2017 Residential s ystems 25

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