Despite a host of professional monitoring services from ADT, Brinks and increasingly, broadband service providers. most consumers prefer stand-alone security products, according to new home security market research from Parks Associates.
Twice as many consumers prefer the stand-alone products, with 16% of households planning to purchase a video door bell, camera or smart door lock within the next year, Parks Associates said. By contrast, only 8% of U.S. broadband households plan to buy professionally monitored service.
“These smart products address the same core needs of consumers-to feel safe and secure in their home, having peace of mind that all is well, and knowing they will be alerted of potential dangers,” said Dina Abdelrazik, Parks Associates senior analyst. “Only 28% of security intenders plan to subscribe to long-term professional monitoring, illustrating competition from alternative business models and standalone security products that have entered the market.”
The research also shows that just over three-in-five (61%) of consumers planning to buy home security equipment prefer to pay for the equipment over time.
“Price sensitivity is likely the major reason that intentions to buy additional control devices are unfulfilled,” Abdelrazik said, in a prepared statement. “The lack of interest in the smart home bundle also indicates that pricing is an obstacle. Therefore, dealers need to consider a strategy that offers the most desired products at the point of sale and then provides upgrade options over the life of the customer.”
Home Security Market Research
Among Parks Associates other findings:
- Two-thirds of those intending to purchase a security system in the next year want video alerts when someone is approaching the home.
- Consumers report paying an average additional $8.91 for interactive services and an average additional $15.51 for home controls.