Parks PointsTop Trends in Smart Home, Home Security Examined at CONNECTIONS Conference
by
Elizabeth Parks |
From May 21-23, more than 600 executives from around the world gathered in San Francisco for the 23rd annual CONNECTIONS: The Premier Connected Home Conference, hosted by leading IoT research firm Parks Associates.
The executive research conference hosted over 300 companies from the smart home and security industry and featured presentations from Parks Associates’ leading analysts and visionary sessions featuring executives in the connected entertainment and digital home technology industries.
Throughout the event, analysts and IoT executives addressed several key points highlighting the growth in the connected home industries:
One of the key themes that emerged during the CONNECTIONS panels on connected health and independent living was a need to define what exactly independent living entailed. Are these solutions aimed at the adult children of seniors, with the goal of making their lives more convenient and improving their peace of mind, or are the solutions targeted to the seniors themselves?
If the latter, how should these solutions be designed to take seniors’ needs and wishes into account? Utilizing senior designers and developers making products for themselves and their families is a good start.
Parks Associates Data: Currently, 40% of U.S. broadband households own at least one connected health device.
This also has implications for other emerging channels such as builders and insurance companies seeking to offer smart home devices to differentiate their products and services. It implies that offering products and services in partnership with proven brands is likely a better approach to the market than to white label or offer proprietary products.
Parks Associates Data: Having multiple IoT devices in the home is becoming common — among consumers who own either a connected entertainment or smart home device, more than 60% have more than one.
These opportunities have been long discussed in the smart home industry; however, more and more companies are discovering the potential impact these spaces can have on device adoption and increased RMR. Increased targeting of property managers for apartments, student housing, assisted living and others represents a chance to sell devices by the thousands rather than to individual consumers.
The home builder channel is another area to explore. While home builders are traditionally risk-averse when it comes to adding new technologies in their homes, many players in the smart home industry perceive home builders as an effective channel to introduce smart home products and services to a broad range of customers, including those who are not traditionally tech enthusiasts.
Parks Associates Data: 45% of likely home buyers would choose a home with smart products over one without.
As consumers purchase more devices, home control systems become more prevalent. Over half of homes owning three or more devices also own a home control system, and 81% of those owning 10 or more devices own a home control system. While one-third of owners still own only 1-2 smart home devices, the future will be consist of households with multiple smart home devices.
![]()
Monitoring has become a commodity in the residential security market, and companies are looking at ways to differentiate themselves and stay competitive long-term. Approaches to differentiation include shifting business model, incorporating DIY solutions and adding additional RMR-generating opportunities through adjacent services.
Parks Associates Data: Twice as many consumers intend to purchase a stand-alone security product than a professionally monitored system.
Parks Associates Data: The average number of connected devices per U.S. broadband household is 10.5, and the majority are connected entertainment and consumer electronics devices.
Smart home device manufacturers and providers have had success enticing current owners with additional purchases. New buyers remain more elusive and will need alternative messaging that focuses on compelling use case stories rather than dwelling exclusively on technology.
Ultimately, consumer interest in smart home products and services is driving innovation in multiple channels, including home builders, security, connected health and wellness, and others, with leading players crafting diverse strategies to leverage smart home tech that enhances their brand, differentiates their product lines and drives recurring revenue.
This article was originally published in www.securitysales.com.
Elizabeth ParksPresident and Chief Marketing Officer As President, Elizabeth supports all teams within Parks Associates, a woman- and family-owned market research and consulting firm. She oversees research topics and coverage areas for the company and directs the integrated strategic communications plan for Parks Associates, including advertising, public relations, and marketing. Elizabeth has supported the growth of Parks Associates business and marketing services for twenty three years and is the key organizer for all of Parks Associates' events, including Parks Associates signature event CONNECTIONS™. She also drives the overall mission to provide clients with the best consumer and industry research and analysis on the SMB and consumer technology markets to inform strategic market decisions. Elizabeth joined Parks Associates on a full-time basis after graduating from the University of Texas at Austin with a BA in psychology. |