The revolution of IoT is ushering in a new, smart, connected era, and the latest revenue-expansion opportunity brings together home security and senior care.
“On the face of it, the two markets are poles apart, but a closer look reveals some interesting common elements,” said Rafi Zauer, Head of Marketing at Essence. The typical user of a professional home security system is an over-45 homeowner with a stable income. The use of home security systems increases with age. That is well illustrated in the highly developed U.S. security market. Only 8% of people under 30 own a professional monitored security system. Almost one in five (18%) of people aged 30 to 44 own such a system, and roughly one in four of people (24%) aged over 60.
The trend is clear: the needs grow when the users grow. Eventually, users are likely to create a safe aging-in-place environment, which they can do simply by adding some devices to their established home security system. “Precedents to this exist in the form of M&A between traditional security vendors and home care vendors creating a unified offering. The results were good, and show that this is a worthwhile route for traditional security companies who want to reinvent themselves,” explained Zauer.
Further, home security service providers who want to extend their business into connected care services, have a number of built-in advantages. They not only know many of their potential customers, they also already possess the key personnel and infrastructure: installers, customer services, and 24- hour monitoring stations. Last, they are experienced in dealing with emergencies, which is essential to be able to offer connected care services.
Security service providers have a fast-growing market opportunity in connected care solutions. They can meet the inevitable demand of an aging population by offering their existing customers a completely integrated solution combining aging in place and security. In this way, they can help customers take care of their health and safety, while maintaining and strengthening customer loyalty.
“Security service providers should see telecare and the integration of security, home automation, and healthcare services within a single platform as the ideal way to access the connected living market. And once in this still emerging market, they will find new trends and technologies they will strengthen their competitive advantage,” said Zauer.