Security Systems News

NOV 2018

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www.securitysystemsnews.com November 2018 S e CU r ITY SYST em S N e WS Security Stat S 2 By Paul Ragusa DALLAS—An estimated 7.7 mil- lion standalone and all-in-one networked/IP cameras will be sold in the U.S. in 2018, with $889 million in revenues, according to research from Parks Associates entitled Smart Product Market Assessment: Networked Cameras. "Networked cameras have experienced a positive growth rate over the last year—2018 is expected to witness a roughly 11 percent increase in unit sales from the year prior," Dina Abdelrazik, research analyst, Parks Associates, told Security Systems News. "Over- all, the broadband household penetration rate is estimated at 9 percent in 2017 and is expected to nearly triple by 2023. Further- more, the CAGR rate for all-in- one camera purchases from 2018 to 2023 is about 19 percent." Abdelrazik noted that advances in image recognition and ease of self-installation, combined with a strong user experience, "are driv- ing increased adoption, with retail channels (online and in-store) starting to dominate sales," she said. "IP cameras are key security- related devices and provide peace of mind to consumers. As such, these devices are consistently among the most popular smart home devices." While retail channels domi- nate (approximately two-thirds) in terms of channel purchase locations for consumers, security dealers were the next option, fol- lowed closely by "broadband ser- vice provider" and "direct from manufacturer." According to Parks' findings, DIY cameras represent the major- ity of sales as these products are improving consumer experiences for installation, setup and usage. The good news for security deal- ers is that consumers still value recommendations and setup assis- tance, as 7 out of 10 consumers planning to buy a networked/IP camera would consider recom- mendations from an insurance or security company to be "impor- tant or very important," according to Parks. "Standalone IP cameras, video d o o r b e l l s , a n d a l l - i n - one cameras all provide an added layer of security for the home along- side security systems," said A b d e l r a z i k . "Security dealers have an oppor- tunity to offer these products dur- ing their sales or installation pro- cesses to educate the consumer on the value of the device, as well as enhance the overall utility of the security system." She continued, "The attach- ment rate of video cameras and home control products to new security systems continues to climb, as does the incremental RMR from video services. Video provides unique value to consum- ers. Once consumers have the ability to check in to see a live view of their home from anywhere in the world, it is hard to give up that experience." Parks' market assessment notes that voice integration and the development of AI as it relates to image and sound recognition will drive the next generation of networked cameras. For example, more than 80 percent of consum- ers who own or plan to buy a net- worked camera consider image or sound recognition abilities to identify safety and security events (like glass breaking or a person falling) to be appealing or very appealing, Parks found. Looking forward, Abdelrazik said AI and the integration of voice control "will help drive fur- ther engagement with consumers, which will continue to drive posi- tive consumer experiences. While consumer privacy concerns do exist with networked/IP cameras, we project double-digit growth for the IP camera market, as consum- er familiarity rises, price points continue to drop, and millenni- als buy homes, acquire pets, and begin having families." ssn Parks Associates looks at IP camera sales, DIY's impact Dina Abdelrazik 989.891.2800 | techsecuritysummit.com Become a sponsor and build relationships with business leaders and experts in security. The 2019 Tech Security Summit is a new must-attend event for professionals in all sectors of the security industry. This inaugural gathering at the Sheraton Grand Nashville Downtown in Nashville, Tennessee combines valuable input from our DICE users with top-tier speakers and educators specializing in technology and strategies for a fast-changing industry. Register today at techsecuritysummit.com Experience the future of security technology at the 2019 Tech Security Summit April 29-May 2, 2019 What to expect: Panels • Product Demos • Exhibitor Showcases Education and Training • DICE User Collaboration Round Table Discussions • Networking and Group Activities • Business Leaders • Central Station Managers • IT Professionals • Dealers • Systems Distributors Tech Security Summit Who should attend: DICE Corporation and the DICE Corporation logo are registered trademarks of DICE Corporation in the US and other countries. Copyright 2018 DICE Corporation. All rights reserved. dicecorp.com 1.800.786.3423 | 989.891.2800 International TECH SECURITY SUMMIT 989.891.2800 | techsecuritysummit.com Become a sponsor and build relationships with business leaders and experts in security. TECH SECURITY SUMMIT TECH SECURITY SUMMIT

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