New research by Parks Associates forecasts that the US market for IP-based home security monitoring services will grow 30% by 2020.
The market generates as much as $10 billion in revenue annually from service fees and covered 18% of U.S. households in 2010, according to Parks’ “IP-based Home Monitoring: Security” report, an indication of the appeal of using broadband networks for remote control of lights, appliances and thermostats. Nearly 50% of survey respondents find email or text notification of smoke, fire, water or gas leaks “very appealing,” research results showed.
Broadband service providers are well-positioned to tap into this market in 2011 and beyond,” according to Parks.
“With the popularity of smartphones, tablets, and other Web-enabled devices, consumers are carrying a link to their home systems,” said Bill Ablondi, Parks’ director of home systems research.Widespread availability of broadband is also disrupting the traditional business model of security companies and introducing new competition from service providers, who are leveraging their networks to create new services and expand ARPU.
Parks commented that the added value that IP and broadband bring to the home security and monitoring through added features and interactivity, make the business ripe for attracting new customers to broadband service providers.
