As more and more homeowners start to acknowledge the importance of a home security system designed and implemented to deter perpetrators and ensure the highest level of protection around the clock, residential alarm products have become increasingly popular all across the U.S. As a matter of fact, the home security systems market has started to flourish over the past few years, and new players seem to appear overnight, seeking to get their hands on the biggest slice of the pie. In this context, one question still remains unanswered: Are the traditional ready to respond to this challenge in an effective manner?
According to a recent study, introduced by IMS Research, the overall penetration rate for home security products currently available on U.S. territory will grow by up to 8% over the next 3 years. This means that new devices will be launched on an already overcrowded market, dazzling millions of potential buyers and surprising them with technological advances and hi-tech features while providing more effective answers to important security concerns.
The same study reflects the fact that, in most cases, an intense competition between traditional providers of and new rivals could have a negative impact on the market. However, reputable home security experts support a different point of view, indicating the fact that the industry is actually welcoming new players offering complete security solutions for any type of property and boosting market awareness. Recent data highlights the fact that cable providers and well-known telecoms are the new fierce competitors in this sector, striving to respond to the security needs of a larger segment of prospects.
The penetration rate of intrusion systems in the U.S. has hovered around the 20% mark for some time. The emergence of new market entrants is expected to increase end-user awareness of home management systems, which combine traditional home security products with innovative home automation technology,” reveals says Adi Pavlovic, IHS security & fire analyst.
Quite recently, companies like Time Warner and AT&T have followed in the footsteps of Cox, Verizon, Comcast, and many other providers, introducing and advertising their very own home security deals. These relatively new players aim to boost their ARPU (average revenue per unit) by offering a complete package considered ideal by most homeowners, which includes Internet, home management system, telephone services, and cable. At the same time, Verizon and Lowe’s are following a different path to success by providing self-monitoring services to their clients, which are considerably more cost-effective than professional monitoring services.
Last, but definitely not least, the study launched by IMS Research also indicates the fact that most of the new players who seem ready to change the rules of the game count on the support of manufacturers contracted to create specific products, like SMC and Technicolor, for instance. While there are no predictions indicating how these new merges and new arrivals might affect market stability and impact the profitability of traditional , the study clearly indicates that the industry will become even more competitive and ready to address all security problems, concerns, and challenges in a prompt manner in the years to come.
Author – Gary has been with us for 3 years, but already has expert knowledge of the home security industry. He’s in charge of company research and news. Zach works to ensure that the site provides the most accurate and timely news in the industry.