New research from smart technology research firm Parks Associates and edge computer vision company Xailient finds that consumers are demanding highly integrated smart access control solutions, like intelligent surveillance that works in tandem with a smart lock. These services are expected to lead to sizable recurring revenues for manufacturers, but integrators could also stand to benefit.
The research finds that smart video devices generated $1.3 billion in stand-alone service revenues in 2023, and that figure is expected to grow to $2.4 billion by 2027. According to the whitepaper, stand-alone service revenues are defined as revenues generated from video storage or monitoring tied to a smart camera.
The research finds 84% of smart video doorbell purchase intenders and 85% of smart camera purchase intenders want the product they purchase to have AI with facial recognition to identify family and friends. One-third rated this feature as a “must have.”
The smart camera and video doorbell market is hot, as 22% of U.S. internet households now own a video doorbell, and about 20% own a smart camera, according to the whitepaper.
In addition, the average home has about two of those devices, and 30% of U.S. homes have at least one. Smart access device demand is growing, with 32% of U.S. homes now owning a smart camera, video doorbell or smart lock.
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Consumer Demand for Integrated Locks, Cameras Rises
Parks Associates and Xailient also found that 93% of smart door lock purchasers want their video integrated with the smart lock, with half rating it a “must have.” For example, users say they want their camera to recognize their face and unlock the door. Currently, only a handful of smart lock manufacturers have models with integrated cameras.
The whitepaper says manufacturers can add recurring revenues with integrated video services, and smart lock manufacturers may begin partnering with camera manufacturers. However, smart lock manufacturers with integrated cameras could see additional revenues, as professional monitoring of residential security systems and video devices is expected to hit $13 billion in 2025.
“Going forward, we project the strongest growth for professional monitoring of stand-alone devices like video doorbells and cameras,” researchers say in the whitepaper.
Smart camera and video doorbell providers are already seeing those service revenues, as owners of those devices pay up to $16 per month for professional monitoring. Smart lock providers can integrate cameras to take a slice of those revenues, research says.
“Due to this growing consumer demand for smarter, more comprehensive video coverage and analytics, manufacturers are integrating video into other form factors, including flood lights, door locks, garage control systems, and vehicle dashboards,” said Jennifer Kent, VP, Research, Parks Associates. “The next step is to integrate these capabilities across devices, to deliver a high-quality experience to the consumer.”
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