Home automation changing the face of residential security

The rapid rise and innovation in Home Automation is poised to change many aspects of home security. The evolution of home automation technology, which is now easily attainable by a majority of consumers, has forever changed the landscape of the  home security market, according to a new research note from Blake Kozak, senior analyst for security and building technologies at IHS. Over the past several years, for example, a number of big cable and telecommunications companies have entered the market offering both security and home automation services, altering both the perception and demand for these systems in the process. Here is the rest of Kozak’s note on the state of the market.

\”Prior to this paradigm shift, the use of a residential burglar alarm system was often a purchase to protect a property and in many cases, an ‘after the fact’ purchase as a result of a break in. While many reasons exist to why a homeowner may purchase security equipment, the reason is no longer solely security, with many users looking to add additional features which are life safety and convenience driven. 

IHS estimated the world market for security devices in traditionally monitored homes [for example – ADT] to be worth about $2.9 billion in 2014, compared with $670 million for smart homes [for example – ADT Pulse]. By 2018, the revenue of smart homes is forecast to top $2.4 billion, according to a recent report from IHS.

These rapid changes to the residential security market have been mostly positive; however, the influx of competitors has dramatically changed the make-up of this industry. Ten years ago, professionally installed, centrally monitored systems were the main offer available to end-users. However, this has changed and today products are offered by monitoring companies, MSOs (multiple-system operators), electric companies, retailers and DIY (do-it-yourself) equipment manufacturers. End-users can find innovative products from new market entrants such as Google and Apple which until recently did not have an offering for the residential security or home automation space.  

So what does this mean for ‘smart’ residential security market moving forward? For manufacturers, it means despite the increase in competition, the market offers ample opportunity for all due to the current, low penetration rate of smart products. For end-users its means more product/solution and pricing options are available than ever before. Finally for the dealers, installers and monitoring companies, the release of new, innovative products/solutions creates better sales opportunities by being able to better meet customers’ needs and budgets.\”


The Google Nest is one of the first radically smart home products in that it monitors smoke and air quality levels and communicates with a home owner. We expect many more of these types of products to appear over the coming months. 

Scroll to Top