According to a new study from The Freedonia Group, “Smart Home Security,” demand for all-in-one smart home security systems and kits is expected to increase 26 per cent from 2017 to $3.4 billion by year-end 2018 and eventually reach $4.8 billion by 2025.
The most significant driver of consumer adoption is the potential cost savings, The Freedonia Group reports. Home insurers are monitoring domotic data gathered by IoT devices to gauge a customer’s level of risk, reduce claims, and lower premiums, and homeowners are also leveraging the data to prioritize maintenance tasks before they become expensive problems.
Other factors driving gains include:
• Competitive pricing
• Consumer optimism about smart home devices and the potential solutions they may provide
• Enhanced analytics features and IoT integration
• Greater cost-effectiveness, ease-of-installation and ease-of-use compared to traditional home security options
• Increasing product visibility and consumer recognition
The study also finds that the convenience and low cost of all-in-one products compared to traditional systems also encourages adoption among consumers who are less likely to invest in home security.
“Market competition and technological innovation resulting in the continual release of higher value-added devices with enhanced features will continue to exert downward pressure on prices for earlier-generation devices in the near term,” it adds.