Parks PointsConnected Health Services: Providing Opportunities for Traditional Security Providers
by
Dina Abdelrazik |
For traditional home security providers, the emergence of connected health products and monitoring services gives a new opportunity to serve consumers at home. The number of Americans age 65 and older is expected to double, according to research from Parks Associates, resulting in the growing use and need of various connected health solutions, including PERS. Over the next several decades, there will be an increased need and demand for smart home devices, on-demand services and security-related solutions aimed at improving the quality of life for seniors and enabling independent living. With more than one-half of home security system owners currently using a personal emergency response system (PERS) or similar PERS products, companies in the home security and smart home spaces are well-positioned to include services that support independent living and caregiving for the aging generations of the U.S. In the same way that security providers provide monitoring services for the home in case of intrusion, there is an opportunity to leverage this same technology to monitor individuals in the home in case of medical-related emergencies. Safety and security is at the core of the home and is the key driver for security and connected health solutions alike. Security providers can diversify their consumer base by providing security related packages designed for protecting loved ones with connected health and independent living solutions. The home is a focal point for consumer health and wellness as the healthcare system shifts from fee-for-service (FFS) to value-based care. The U.S. Department of Health and Human Services (HHS) aims to make 50% of all Medicare payments via alternative payment models by the end of 2018. Many payment models make care providers responsible for patient outcomes, driving demand for connected solutions that quantify and address the gap in care between the facility and the home.
Service providers, professional security monitoring and PERS monitoring companies are exploring their potential role in consumer wellness, remote patient monitoring and aging with independence. Providing solutions for aging consumers and their caregivers is a natural first step and will become increasingly necessary as demographic shifts in the U.S., Western Europe and Asia result in large elderly populations in the years to come.
Parks Associates research shows that in the last five years, the adoption rate of residential security systems has remained relatively constant. Overall, 51% of professionally monitored security systems in the U.S. had interactive services in 2017. Interactive services, the ability to remotely control and monitor a security system via a smartphone, can be leveraged in a similar way with connected health devices to provide one connected platform. With the growth rate of connected health products steadily growing, traditional security providers have an opportunity to utilize the momentum to expand into the market and position themselves as a comprehensive security solution for the home.
For traditional security providers, stepping into the connected device market for independent living services would give them a source of recurring revenue as owners of home security packages are willing to pay extra for monitoring services and alert systems. If security system providers manage to integrate connected heath solutions into their monitoring services, they can expect to see a rise in subscriptions and payments in the near future.
This article was published on Security Sales & Integration.
 Dina AbdelrazikContributing Analyst INDUSTRY EXPERTISE: Residential Security, Smart Home Products and Services, Smart Home Strategies, Voice Technology Devices and Platforms Dina leads Parks Associates residential security research and is a member of the connected home team. She has authored numerous reports covering topics such as home security market trends and competitive landscape, voice assistant technologies, smart home strategies, and technology solutions for seniors. She leads custom research projects on connected home topics and is a certified focus group moderator, with training from the Burke Institute. Dina earned her MS in Marketing, with a concentration in Marketing Analytics, from the University of Texas at Dallas and a BA in Advertising from Southern Methodist University. |
