Over the next five years, monitored security players will maintain the number one position in installed homes in the US managed smart home market, but their market share will drop more than 50% as competition increases and rivals leverage their own strengths with competing services, according to a new report by ABI Research.
The report finds that the early mover advantage of monitored security companies cannot match some competitors core competencies, which are better suited to selling smart home products and services.
Monitored security players will increasingly face a choice between continuing to bundle smart home service with monitored security or creating separate, entry-level smart home offerings. Varying service cost, functionality, device support, contract length and bundled service models are all being tried and tested by vendors within the growing marketplace challenging security player traditional offerings. Between 2013 and 2019, managed smart home service adoption will grow 37% in the US.