Parks Associates research examines new product and service opportunities in residential security market

New research from Parks Associates shows the integration of smart home products will be key to drive new recurring monthly revenue (RMR) growth among security companies. 360 Deep Dive: Driving RMR Growth with Add-on Products & Services notes the security industry has experienced flattening RMR growth as adoption of interactive services has exceeded 50% of security subscribers.

“Today, over three quarters of new security subscribers have interactive services, paying $9 per month on average for the service,” said Tom Kerber, Sr. Director, IoT Strategy, Parks Associates. “As adoption of interactive services matures and new entrants with low-cost, self-installed systems put downward pressure on RMR, the industry is seeking solutions to expand RMR. Cybersecurity services, video verification, and personal emergency response are a clear path to generating incremental RMR.”

Parks Associates notes only 23% of current security subscribers have an integrated smart home device, which can add an additional $15 to system costs. New industry initiatives, such as such as Vivint’s Flexpay, are designed to overcome consumer resistance to high upfront costs by offering financing options for security-as-a-service solutions and smart home products such as lights, locks, and thermostats.

360 Deep Dive: Driving RMR Growth with Add-on Products & Services evaluates consumer interest in financing add-on home control products. It also evaluates the demographic and psychographic characteristics of consumers that are interested in each service.

Additional research includes:

• 50% of current subscribers will purchase add-on video verification for $10 per month.
• More than 20% of current subscribers are very interested in both vehicle monitoring and tag tracking services.
• Only 37% of new subscribers have an integrated smart home device.
   

Parks Associates will host “Special Session: Home Security and the Smart Home” at CONNECTIONS™ Summit: Consumer IoT and Smart Home on January 8, 2019, in Las Vegas, on the first day of CES® 2019. This session highlights opportunities and challenges in the smart home and residential security industry and features executive speakers from eQ-3 and Ring, an Amazon Company. Registration is available at the CES site.

For more information about 360 Deep Dive: Driving RMR Growth with Add-on Products & Services, contact [email protected]. To schedule an interview with an analyst or to request specific research data, please contact Julia Homier at [email protected], 972-996-0202.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

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