Tuesday, March 12, 2019

Twice as many consumers intend to purchase a stand-alone security product than a professionally monitored system

Research addresses opportunities to drive smart home device adoption forward

Security research fromParks Associates reveals the growing threat of connected products without professional monitoring, as twice as many consumers intend to purchase a standalone security product than a professionally monitored system. 360 Deep Dive: Pricing Strategies for Residential Security reports 16% of U.S. broadband households plan to buy a security-related smart home product, such as video door bells, cameras, or door locks, in the next 12 months. Eight percent of U.S. broadband households plan to buy professionally monitored service, while the remaining intenders are planning to buy security systems with self-monitoring or ad-hoc monitoring.

“These smart products address the same core needs of consumers—to feel safe and secure in their home, having peace of mind that all is well, and knowing they will be alerted of potential dangers,” said Dina Abdelrazik, Senior Analyst, Parks Associates. “Only 28% of security intenders plan to subscribe to long-term professional monitoring, illustrating competition from alternative business models and standalone security products that have entered the market.”

360 Deep Dive: Pricing Strategies for Residential Security evaluates price sensitivity to upfront fees, monthly fees, and contract lengths for both security systems and security systems with access control. The study assesses consumer interest in financing add-on home control products, revealing that 61% of those intending to purchase security prefer to finance the hardware than to pay cash up front, which would alleviate the financial burden of adding multiple smart products and cameras to a system.

Desired Home Control Capabilities of a New Security System | Parks Associates

“Price sensitivity is likely the major reason that intentions to buy additional control devices are unfulfilled,” Abdelrazik said. “The lack of interest in the smart home bundle also indicates that pricing is an obstacle. Therefore, dealers need to consider a strategy that offers the most desired products at the point of sale and then provides upgrade options over the life of the customer.”

Additional research includes:

  • 67% of those intending to purchase a security system in the next year want video alerts when someone is approaching the home.
  • On average, consumers report paying an additional $8.91 for interactive services and an additional $15.51 for home controls.
  • Only 8% of intenders state a preference for a security system with no add-on products.

 

For more information about 360 Deep Dive: Pricing Strategies for Residential Security, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Elizabeth Parks at eparks@parksassociates.com, 972-996-0202.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

http://www.parksassociates.com

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