Established security suppliers could partner with new entrants into the home security market to drive innovation and exploit opportunities, according to new research.
The ‘World Market for Intruder Alarms’ study from IHS claims the intruder alarm market in the US is embracing new competition, rather than viewing an influx of new companies as detrimental to the industry as a whole.
The likes of AT&T, Time Warner, Comcast, Cox Communications, Verizon and Lowe’s have recently entered the home security market. Such telecommunications providers are offering home systems in addition to services such as cable, internet and telephone.
According to the study, the penetration rate for US residential intruder alarm products will increase by 5 to 8 per cent in the next three years.
There have been examples of new entrants partnering with established security suppliers to offer complete home security services, or partnering with new manufacturers.
Most new entrants have also shown to have partnered with existing professional monitoring companies, with only some launching their own monitoring stations.
However, some companies, such as Verizon and Lowe’s, have launched tailored self-monitoring services at a lower cost than professional monitoring, rather than competing with traditional security suppliers.
The prevalence of smart phones, and a desire for cheaper systems from home owners and renters, means utilisation of do-it-yourself and self-monitoring systems could grow over the coming years.
The report claims the overall home security market will continue to become more competitive and this will create further opportunities for established suppliers to partner with newer entrants to offer a ‘complete home security product offering’.
Adi Pavlovic, security and fire analyst for IHS, said: “The penetration rate of intrusion systems in the US has hovered around the 20 per cent mark for some time.
“The emergence of new market entrants, such as telecommunications companies, is expected to increase end-user awareness of home management systems, which combine traditional home security products with innovative home automation technology.”
The report states: “It’s too early to tell what this means for traditional intruder alarm suppliers, but the market will only become more competitive with acquisitions and mergers likely in the not-too-distant future.”
