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Future of interactive residential security market in the US – bleak or bright?

The rise of interactive srvices has helped raise the penetration rate of traditional security
Security is the lynchpin that leads to
interactive services

Have interactive services lost their edge? Are users discouraged and disenthralled? That’s a myth that needs busting, because security companies continue to have success offering these solutions to customers.

Alarm companies who began their business with traditional intrusion detection continue to deliver interactive services as part of a total, connected home solution. Companies like Complete Security Systems, Marlboro, N.J.; Marshall Alarm Systems, Yorktown Heights, N.Y.; and The Security Girl, Dayton, Ohio, are among several companies embracing and offering new technologies and services – and having good luck with it.

Security is the lynchpin that leads to interactive services. That’s because keypads and controls start with intrusion detection but now can easily add a variety of connected technologies for the user. Some of the most popular services include the ability to remotely arm and disarm doors via smartphone applications; video surveillance; and locks, lighting and thermostat controls, according to John Pirrie, director of marketing for SecureNet Technologies, Lake Mary, Florida.

Security has its day

“Companies providing professionally monitored systems are experiencing good growth,” says Dave Mayne, vice president of marketing for Resolution Products, Hudson, Wis. “If you look at the top security providers in the U.S., they lead with interactive services because it drives recurring monthly revenue (RMR).” Resolution Products produces hardware that acts as an interactive gateway to interface with most existing security controls and partners with SecureNet Technologies, which provides a software platform to manage the services. “The best way to approach selling interactive services is to start with security, because that’s what makes sense to the customer,” Mayne says.

"If you look at the top security providers
in the U.S., they lead with interactive
services because it drives recurring
monthly revenue (RMR).The best way to
approach selling interactive services is to
start with security, because that’s what

makes sense to the customer"

Alan Patterson, director of Product Marketing for Icontrol Networks, Redwood City, California, cites the company’s 2015 State of the Smart Home Report, commenting that, of the benefits consumers find most attractive, security (90%) is still number one in driving mass market adoption for the smart home, followed by cost savings (70%), elder care (49%) and energy efficiency (47%).

More competition, better quality

As the smart home industry continues to evolve, Patterson says, more and more manufacturers will enter the market, resulting in increased competition, innovation and cost reductions. From a consumer perspective, this highly competitive market will result in better, lower-cost products. 

“When it comes to the smart home and the Internet of Things (IoT), it’s not the promise of a Jetson’-like home with robots bringing you dinner; it’s really about delivering enhanced security for the homeowner and peace of mind,” he says.

Simple and secured’ home automation

Patterson believes the rise of interactive services has helped raise the penetration rate of traditional security. “Consumers are starting to tie security and home automation together. In fact, according to the smart home report, security is the main reason consumers purchase and use home automation. Nearly seven out of ten (69%) respondents said they would be hesitant to purchase a smart home system that didn’t include security, and 35% said they absolutely wouldn’t consider it. A respondent said it best in an open-ended response: ‘Security is what makes a smart home a smart home.’”

Patterson concluded that the company’s research indicates 54% of U.S. homeowners plan to buy at least one smart home product in the next year. “We also found that consumers don’t want fancy products, but rather simple devices that significantly improve their quality of life. We believe high-value devices are here to stay – whereas those without substantial user benefit may not be around long.”


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