When you think about thriving startup cultures , what comes to mind? For most people, the likes of Google, Facebook, Uber, and other Silicon Valley titans form the basis for whatever mental concept we hold about the world of tech startups. You'd be hard-pressed to find anyone who says "the connected home security industry" in response to this prompt.
Yet in spite of the security industry's relative lack of headline news coverage, it's been growing by leaps and bounds for the past several years--and raking in huge profits in the process. In fact, new research suggests the connected home security industry alone is on track to reach $15.6 billion globally within a mere four years. That represents an impressive compound annual growth rate of more than 27 percent.
For those not familiar, connected home security systems or devices connect to the cloud via a mobile device or the web. This allows for remote control and monitoring of a variety of security elements, from door locks to video recording devices. Here's a brief look at what's driving this segment's massive growth.
People are more concerned about home security than they have been in the past
Connected home security is one segment of the larger home security industry, which is also enjoying unprecedented growth. While there's debate over the exact reasons why this is the case, the end result is clear: Everyday people are increasingly concerned about the security of their homes--and they're willing to invest in products and services that help them feel like their families and belongings are more secure. It's a case of all boats rising with the tide: As the broader home security industry grows, so too does the connected home security segment within it.
Smartphones and tablets are increasingly ubiquitous
A growing number of people around the world own connected devices. This is especially true in the U.S., where a whopping 77 percent of Americans are in possession of a smartphone and just over half own a tablet. People are used to being connected to the internet at all times and to having access to loads of personal information with the touch of a button. The result is a cultural shift in which people don't only appreciate connectivity from the devices and systems they use in their everyday lives-- they expect it. That demand (coupled with the overall demand for home security solutions) has paved the way for huge growth in the realm of connected home security.
Big-name brands are leading the charge
Huge brands including AT&T, ADT, Comcast, and Tyco Security Products have long been major players on the home security stage, and they've used their financial clout and brand recognition to heavily invest in and grow awareness of connected home security products . In the process, they've helped create an industry culture in which the alarms, cameras, and monitoring systems segments (all of which can fall under the "connected home security" umbrella) are enjoying tremendous growth.
DIY systems are diversifying the industry's consumer base
While big-name brands are responsible for the lion's share of the growth currently being enjoyed by the connected home security segment, they're not the only companies getting in on the action. Instead, major home security retailers are paving the way for smaller brands to capitalize on the demand generated by these bigger players. Many smaller companies have found a lucrative niche in DIY connected security solutions, which appeal to consumers looking for lower costs and less hassle than professionally installed systems. This is diversifying the range of security solutions on offer and consequently making the market accessible to a broader range of consumers than ever before.
Of course, none of these factors would exist were it not for the continued growth of the Internet of Things, which is driving connected tech advancements at an unprecedented rate. From smart locks and lightbulbs to environmental sensors, connected home security enables people to monitor the state of their home in more ways than ever before.