Connected devices are forming deep integrations in consumers’ lifestyles, with convenience, comfort, and peace of mind as the leading drivers of adoption. As their familiarity with smart home products increases, consumers will seek products that target their specific needs, which can range from lawn maintenance and irrigation to independent living and health monitoring. Co-marketing partnerships with brands in other industries such as energy providers, builders, and insurance companies will help expand awareness and distribution and connect consumers with the connected solutions they want and need.

The huge announcement that State Farm is making a $1.2 billion investment in ADT (ADT), giving State Farm a 15% stake in the company, shows just how much video and audio analytics have expanded the capabilities of connected home products.

Smart cameras and video doorbells are the best-adopted smart home device product categories, outside of smart speakers. In July 2022, 14% of US Internet households reported owning a video doorbell, and 13% reported owning a smart camera, according to Parks Associates research. Security system owners adopt these products at dramatically higher rates than the average household. They are the top devices that security owners add to their systems if they don’t include them in their system at purchase. New product announcements illustrate how manufacturers are fighting for an edge in this very competitive market:

• In Q2/2022, Bosch, Swann, Arlo, Vivint, and Alula each announced new cameras. Whether a video doorbell or freestanding camera, manufacturers are improving pixel quality, night vision, thermal vision, camera view, camera durability, battery life, and A.I. detecting capabilities. Their new features improve deterrence for intruders or porch pirates.
• The Arlo Go 2 release is notable for its improved features but with lower pricing than the previous model. The Arlo Go 2 release included features not present in the Arlo Go, including 1080p, Wi-Fi and LTE support, longer battery life, GPS, a spotlight, and real-time 2-way communication. The Arlo Go 2‘s starting retail price is also $150 cheaper than the Arlo Go.

Parks Associates forecasts there will be more than 250 million networked cameras, smart video doorbells, and smart speakers/hubs sold across 2021-2024. Consumers and security providers will benefit as manufacturers fight for an edge in this very competitive market. Security players who develop their own products are under stronger pressure to keep up with the pace of innovation.

As growth continues in the connected home space, so do consumer expectations. A seamless, unified, easy experience that provides convenience, safety, and security benefits, and any energy savings in the home is what the consumer wants and it is exciting to see so many developments taking place to bring those experiences beyond the early adopter market.

Parks Associates has studied the impact of computing on consumers and businesses for almost 4 decades. For more information on our research and events, visit www.parksassociates.com

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