Silicon Valley will soon become a massive player in home security
Bob Bryan for BusinessInsider: Currently, there are three types of home security on the market. The industry giants run traditional professionally installed and monitored systems, like what ADT offers and telecoms such as Comcast and AT&T have begun to roll out. These represent 93% of the home-security market, says Citi.
The next is self-installed and professionally monitored in which a customer installs the hardware and then pays a subscriber fee to have the house monitored by professionals. This category includes companies like SimpliSafe, Frontpoint, and Protect America. These companies have 4.7% market share.
Finally, self-installed and monitored systems such as Google's Nest and Dropcam or Apple's HomeKit-enabled devices leave it up to the user to set up their home security and use notifications to enabled devices to alert people. For these services there is no human monitoring the home security. They control 2.3% of the market, but not for long says Citi.
Based on research projections, Citi estimates that self-installed and monitored systems will control 34% of the market in five years, with professional system slipping to 61.6%. In the longer term, 20 years from now, these numbers are projected to basically switch with self-monitored systems holding 62.5% of the market and professional services making up 31.3%. Cont'd...
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