Report: Home Security Penetration to Reach 28% by 2016
Xfinity recently launched Xfinity Control, a DIY security and home automation system costing $10 per month.
The prediction is part of the IMS study entitled, “The World Market for Intruder Alarms.”
“The penetration rate of intrusion systems in the U.S. has hovered around the 20 percent mark for some time,” says Adi Pavlovic, security and fire analyst for IHS. “The emergence of new market entrants, such as telecommunications companies, is expected to increase end-user awareness of home management systems, which combine traditional home security products with innovative home automation technology.”
While home automation features are driving the penetration of integrated home management systems, the core functionality consists of a basic intrusion system.
Telcos, cable companies and retailers are now competing—successfully for the first time—against traditional security installation and service companies like ADT.
- AT&T (Digital Life)
- Xfinity/Comcast (Home, Home Control and Home Secure)
- Time Warner Cable (Intelligent Home)
- Cox Communications (Home Security),
- Verizon (Home Monitoring and Control)
- Lowe’s (Iris)
Leveraging their existing client base, telecommunications providers are offering home management systems in order to increase their average revenue per user (ARPU). Combining these newer offerings in addition to pre-existing services such as cable, Internet and telephone is becoming an attractive and cost-effective way to entice end users, thus driving the uptake of security products, according to IMS. Most new entrants have partnered with existing professional monitoring companies, while some have decided to launch their own monitoring stations.
Verizon, Lowe’s and now Xfinity offer security and home automation systems for self-monitoring for about $10 per month.
Lowe’s recently partnered with Verizon to sell Lowe’s Iris product line alongside Verizon’s home security solutions in Verizon stores across the United States.
Although the use of do-it-yourself and self-monitoring systems remains a small portion of the market today, the potential remains high considering the number of smart phone users and home owners/renters that may not want to spend on a professionally monitored system.