According to a new report from Parks Associates, total professional monitoring revenue for the US home security industry will reach $15 billion in 2020, with smart home services accounting for just over $1 billion.
“The number of connected devices continues to grow year over year, and 2019 ended on a particularly strong note for the security industry,” said Brad Russell, Research Director, Connected Home, Parks Associates, in a statement. “Adoption of the security system reached one-third of all US broadband homes by year-end. Consumers now have an average of 11.4 connected devices in their homes, opening up multiple possibilities for expand monitoring services as well as different varieties of professional monitoring and MIY (monitor it yourself).”
The research firm noted that the COVID-19 pandemic and the resulting economic fallout will create a more challenging landscape for the industry throughout the year as consumers seek to curb household spending. However, Parks Associates said their own surveys show consumers also value the safety, security and economic benefits of monitoring services, which security companies can build on moving forward.
“Central monitoring is a high-margin business, and many stations have excess monitoring capacity, driving the industry to expand its value proposition beyond the standard security offering,” Russell added. “As more aspects of daily life become connected and people spend more time at home, new opportunities are emerging in several areas, including monitoring energy consumption, mitigating flood and fire hazards, monitoring the health and safety of aging parents, tracking valuables, and monitoring appliance maintenance.”
For more information on Parks Associates’ new report, “IoT: Extending Professional Monitoring for New Revenue,” click here.