Security Systems News

JUN 2018

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 29 of 42

S e C u RITY SYST e MS ne WS June 2018 Monitoring 23 app—is actually going to be declining starting next year and the connected systems are going to be growing upwards of 18 to 25 percent annually." Kozak continued, "So, it's not necessarily that the market's slowing, it's that the market is shifting." Dealers who aren't getting more involved with video and other value-added services will start to decline in a few years, "especially as you see more MSOs entering the space and more DIY-type systems," said Kozak. The report looked at alarm monitoring for small- to medi- um-sized businesses and large enterprises as well as the resi- dential space. MSOs and professionally moni- tored DIY systems will collec- tively make up about 20 percent of the residential alarm monitor- ing market by 2022, according to IHS Markit; these portions of the market made up about 9.5 percent in 2017. MSOs will rise to cover about 14 percent by 2022, Kozak said. Comcast is the more predomi- nant MSO at this point in the U.S. market, Kozak said, as the pro- vider accounts for 78 percent of MSO monitored accounts in the U.S. in 2017. "There aren't that many who have a lot of penetra- tion at the moment but I think that as these MSOs expand out their ecosystem, I think they'll be in a much better position to per- haps converge or take customers, especially because … they own all of the aspects of entertain- ment and media," he said. "In order to overcome that, these dealers and other tradi- tional security service providers will need to innovate around video more and partnerships," said Kozak. Comcast recently purchased cloud-based automation provider Stringify in September 2018 and a business unit of Icontrol—the Converge platform—around March 2017, Kozak noted. "So, they're in a very good position to integrate their media content, their voice remote, all of these other features and functions that most traditional security service providers don't have." Kozak advised that security service providers should be ready for a wave of consumers—like millennials—that are looking for offerings outside of traditional systems, with devices such as air quality sensors and lighting, at a certain price point. Growth, changes coming to the monitoring market to 2022 DIY installed systems that are professionally monitored will remain a "relatively small" por- tion of the market, increasing from a 3 percent share of the market to about 6 percent over the next five years, said Kozak. Though, DIY installed and self- monitored systems are also a factor, he added. "I don't think that the professional security market is going to be impacted, in the short term, by the DIY market." SSN LTE is the Future CHOOSE DMP AND MOVE YOUR BUSINESS FORWARD You need cellular technology that works best for the long term — that's why our LTE strategy relies on Cat-M1 technology that's locked in to give you 10 years of service. It also provides faster connect speeds and better penetration inside buildings. Longer lasting, better range, plus you'll save on every module. Choose DMP and move your business forward. Long lasting. Better range. We make your company more valuable. 877.725.1114 • Keep updated on our new products and features: @DMPAlarms make sure that end users are aware of verification technologies, Robinson said, an effort which ulti- m a t e l y n e e d s a s t ro n g dealer base behind. "As we begin to go out and promote the message of video verification to the end users, it's going to be critical that we have a robust dealer network in place to support the end user demand." SSN Continued from page 22 I-V I ew "SMB connected accounts will continue to ramp up and will see double-digit growth starting in 2022." —Blake Kozak, IHS Markit Continued from page 22

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