Smart Home Security Segment Revenue Growth is Slowing
New research from Parks Associates suggests that monthly revenue growth in the home security sector of the smart home market is flattening. The adoption rate has surpassed 50% according to research from Parks Associates. It was also found that over 75% of new security subscribers are paying an average of $9 a month for interactive services.
The increase in adoption of interactive services and low-cost, self-installed systems are putting pressure on recurring monthly revenue (RMR), forcing new methods for generating revenue. Parks identified cyber security services, video verification, and personal emergency response as RMR generating opportunities. Adding to system costs is a contributor to the disparity. Some providers are exploring financing options to help mitigate the additional system costs.
Despite the flattening RMR, J.D. Power’s 2018 Home Security Satisfaction Study found that the profile of home security is rising. All-in-one network cameras or IP cameras are contributing to the rise. In fact Parks Associates found that about 7.7 million network camera devices will be sold in the US this year, representing nearly $890 million in revenue.
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