Over the next decade, the home security market will undergo massive changes, as smart home, mobile and cloud technology enable new alternatives to traditional solutions. One of the emerging alternatives is do-it-yourself (DIY) self-installed home security solutions which, according to a new report from NextMarket Insights, will account for $1.5 billion in equipment and services by 2020.
“The traditional home security market in the US has plateaued at 25% market penetration”, says Michael Wolf, chief analyst at NextMarket Insights. “The reason is that while most consumers want to feel safe, only a segment of the market is willing to pay a $40-$50 recurring monthly fee and commit to a three year contract”.
The paradox of the home security market is that while traditional home security caters to middle to upper income consumers – which account for about one in five households – it is lower income and young consumers who often live in neighborhoods with higher crime rates. These consumers, who would benefit most from some level of home security solution, often don’t consider it an option because of the commitment required.
“One in three US households rent, which is a largely untapped market today”, says Wolf. “We also believe younger consumers, who tend to be more mobile, would be interested in basic home security offerings at lower price points that they can take with them as they move”.
