Communications and Technology Industry Research

Research firm ABI Research’s (News - Alert) recent report titled, “Home Automation and Security,” predicts that nearly one million managed home automation systems will be installed in 2012 in North America. This figure is expected to nearly double in 2014. ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies.

 

A significant element of managed home automation packages is security. Traditional security service alarm service providers as well as telcos and cable broadband service providers are now entering the market for managed home monitoring and automation services. Service providers are motivated to enter this market since they have existing relationships with subscribers that enable them to provide education about home automation’s benefits.

 

Sam Lucero, ABI’s practice director, said that managed home security represents good value for the consumer. Standalone home automation and security systems pose a challenge to consumers, in both cost and complexity. When home automation functionality is included in an overall security alarm package, it is more seamless and less expensive for the consumer to acquire.

 

Service providers are motivated to deploy managed services to increase their revenue and subscriber retention rates. The efforts of service providers’ are assisted by turnkey solutions suppliers like InGrid, 4Home and iControl that helps them go to market quickly. Since home security, along with the energy management, healthcare and media management elements of home automation are intuitively beneficial to consumers, it results in greater willingness to adopt.

 

Additionally, the report analyzes the market for home automation and home security technologies and examines how these two markets are increasingly intersecting with the advent of home monitoring and managed home automation services.

 

Central to the analysis is an examination of trends in the use of cellular wireless technologies to provide backhaul communications links between security alarm panels and central monitoring stations. The study encompasses the global market for these technologies. However, emphasis is placed on the North American and European regions, which comprise the vast majority of the market for both home automation and home security.

 

The report contains a segmented 6-year forecast for the period from 2008 through 2014. While home automation system shipments and revenue are forecasted by region and by major market segment, wireless security module shipments and connections along with accompanying shipment and service revenues are forecasted by region and air interface standard. In addition, the study also presents and analyzes survey results from a U.S.-based consumer panel regarding knowledge of and attitudes to home automation technology.