Security Systems News

FEB 2018

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Page 8 of 82 February 2018 S e C ur IT y S y ST e MS N e WS Security Stat S 2 By Spencer Ives DALLAS—Parks Associates recent- ly published a report, "Home Secu- rity: Market Sizing and Forecasts," that outlines the firm's expectations in the market between 2017 and 2021. "Overall, Parks Associates esti- mates that adoption of security systems among all U.S. households will be roughly 27 percent, or 30 percent of broadband households, by 2021. This will leave 70 per- cent of broadband households untapped by the security industry," Dina Abdelrazik, research analyst for Parks Associates, told Security Systems News in an email inter- view. This figure does not exclude self-monitored systems, Abdelrazik said, which could be in 1.8 million U.S. broadband homes by 2021. "Our 2017 estimate for profes- sionally monitored systems is 22% of broadband households, while roughly 2% of broadband house- holds have a self-monitored secu- rity system," said Abdelrazik. The home security market will experience a 3.7 percent CAGR in the number of broadband house- holds with a security system, Abdelrazik said. "The number of households with professionally monitored security systems contin- ues to increase, but growth remains slow. The forecast for 2017 shows a less than one percent increase over 2016 and less than one percent increases year-over-year through 2021," she said. Abdelrazik said that Parks Asso- ciates uses three main sources of information for its forecast. "These are data gathered from our quar- terly consumer surveys of 10,000 U.S. broadband households to understand consumer behavior, adoption, and trends; interviews with industry-leading executives; and third-party resources such as financial reports," she said. There are a variety of develop- ments or trends that influence the home security market, according to Abdelrazik. "While the emergence of smart home products extends the value of a security system, it also increases competition, as smart devices are often sold independent- ly of a traditional security system. Many are self-installable, meaning consumers are increasingly becom- ing accustomed to self-installing systems." She continued, "Additionally, adoption of interactive services continues to rise, advancements in technology offer new value potential for security systems, and efforts to expand the market with new business models are all major trends impacting the professional monitored market." Abdelrazik also highlighted ana- lytic and voice control technolo- gies as improving user experience. "Video analytics enable features that distinguish individuals in a visual frame, audio analytics can identify a variety of noises, and voice control simplifies the expe- rience with vocal commands," she said. Two main reasons drive consum- ers to install a security system: their property and their family. "Among U.S. broadband households acquir- ing a security system in 2016, 29% reported that protecting the home and its belongings as the main pur- chase driver, followed by 26% for protecting family and loved ones," said Abdelrazik. Asked about potential hindranc- es to the market, Abdelrazik said some consumers don't see a secu- rity system as a necessary expense. "Consumers can perceive security system ownership as a luxury due to the associated monthly fees that may come with acquiring a sys- tem. For professionally monitored security, cost is the most commonly cited reason for canceling services." The North American region will continue to have a high number of monitored household alarm sys- tems through the forecast period, compared to other regions, accord- ing to Abdelrazik. "We forecast that for 2017, and the following four years, the North American mar- ket will have the greatest number of households with professionally monitored security, followed by the Asia and Pacific region. Asia-Pacific Parks Associates predicts rise in households that have security by 2021 Stat S see page 5

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