Security Systems News

DEC 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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DIY's impact on security signif icant, studies f ind By SSN Staff DALLAS—With the recent announce- ments from Nest, Ring, and Samsung/ ADT, as well as Honeywell's announced plans to offer a DIY solution, many in the industry are speculating on the impact DIY security systems could have on the security industry. New research from Parks Associates shows aggressive innovations in smart DIY solutions will reinvigorate the home security market. Parks found that new and more economical DIY systems from key players, including Nest, Ring, Sam- sung, and ADT, are part of a key step in expanding the security market. The international research firm also notes that new smart DIY solutions will r e i n v i g o r a t e a d o p t i o n o f home security, p a r t i c u l a r l y among younger consumers. "Consumers value security and safety use cases, but the security market has struggled to move beyond the traditional 20% pen- etration level in the U.S.," Brad Russell, research director, Connected Home, Parks Associates, said in the announce- ment. "Aggressive moves by companies such as Ring, which launched its inex- pensive Ring Protect DIY home security system in October, will help attract new and younger consumers into the security market. Ring's pricing strategy also puts downward pressure on other players to lower prices." Parks Associates reveals that 37 per- cent of smart home device owners report safety is the main reason they purchased a smart home device and nearly 30 percent bought a smart home device primarily to monitor their home while away. The firm notes that DIY innovations with on- demand, no-contract monitoring options could help expand the market for device makers and for monitoring providers who seek inroads to young consumers. "Samsung and ADT have joined forc- es for the ADT Home Security Starter Kit, which expands the self-installable DIY segment," R u s s e l l s a i d . " M e a n w h i l e , h u b - b a s e d s e c u r i t y s y s - t e m s a r e a n i n t e n t i o n a l s t r a t e g y t o stake out a con- troller position i n t h e h o m e for a variety of future device and service offerings." This latest Parks' research comes on the heels of findings from London-based research firm IHS Markit, which esti- mated that in 2016 the Americas was the largest market for DIY security alarm sales, expected to grow at a 20 percent CAGR over the next five years. SSN "Consumers value security and safety use cases, but the security market has struggled to move beyond the traditional 20% penetration level in the U.S." — b rad Russell, Parks Associates By SSN Staff WASHINGTON—With the recent Amazon announcement of several new Alexa-related products and integrations, IHS Markit looked at what this means for the smart home. "For smart home enthusiasts, perhaps the biggest news from this announce- ment is the Echo Plus doubling as a smart home hub," Blake Kozak, prin- cipal analyst, security technology at IHS Markit, said in the analysis report. "By using a single-voice command, the Echo Plus will discover ZigBee and Wi-Fi devices in the home, with no need for additional apps or skills." Kozak said that this is a significant development because "despite the prom- ises of voice-controlled devices in the home, such as light bulbs and thermo- stats, the native app was still required for setup and in some cases, the user would need to know the brand of that device (or the Skill) in order to control it with voice commands," he explained. "For example, to adjust the temperature of an Ecobee thermostat using an Alexa- enabled device, the consumer would have to say something along the lines of, 'Alexa, ask Ecobee to change the tempera- ture to 70 degrees.' With the Echo Plus, the idea would be that the consumer could just say, 'Alexa, change the temperature to 70 degrees.'" Kozak said that although removing the need for apps and skills is significant, "it is tailored toward less tech-savvy users and those who are just looking to dip- their-toe—rather than leap—into smart home. For example, although the Echo Plus automatically discovers ZigBee devices, such as Philips Hue bulbs, Philips announced that the full feature set is not available with this method." What this means is that users can con- trol Philips Hue bulbs with the auto dis- covery of the Echo Plus, but automating lights, creating scenes and over-the-air updates are all limited with the Echo Plus. In terms of the smart home hub battle, there will be about 4.8 million DIY hubs shipped globally in 2017, IHS predicts. "Amazon should be able to gain market share quickly, but the likes of SmartThings and Wink will be difficult to overtake in the short-term," said Kozak. SSN Amazon moves suggest plan to make smart home simpler WHOLESALE MONITORING FUNDING PROGRAM LOAN PROGRAM mPERS PROGRAM BULK ACQUISITION SALES TRAINING (855) 776-2210 everything under one roof S ec URITY SYST e MS N e WS dece M be R 2017 Residential s ystems 25

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