The home security industry illustrates global trends: from the growing popularity of the do-it- yourself movement to globalization of developing countries. This week, we take a look at how Amazon’s Alexa takes on security, the decline of the security giant ADT and the future of the home security camera.
“Alexa, I’m Leaving.”
Americans can now use Echo speakers as home security devices. When an individual tells Alexa “I’m leaving,” it will automatically alert your phone of CO2 alarm, smoke alarm, or a loud noise like glass breaking. If the user has service with either ADT or Amazon Ring, they will also be notified of any suspicious activity. And you guessed it, these alarms can be turned on and off with voice control.
“Away Lighting” is another feature of the Alexa Guard that allows your lights to turn on and off in accordance with the customer’s behavior, to make it seem as if a person is home. Additionally, it monitors the homeowners’ usual habits, and plans i’s “flickers” accordingly.
While Alexa may be able to add an additional layer of security, it does not mean people should do away with security systems as a whole. If an intruder is quiet or is able to unlock a door, Alexa will not know to alert the security provider. However, the Alexa Guard does provide some peace of mind while you are away, even if the more expensive security option is ultimately better.
DIY Home Security Makes ADT Stock Plummet
With the rise of DIY home security, home security giants such as ADT are feeling the loss as its stock price plummeted 6.6% on Monday. ADT’s biggest competitors? Google’s Nest and SimpliSafe’s Ring, which make it easier for a consumer to install a device themselves.
ADT shares are down 49% since their IPO in January, 2018. To stay viable in the home security game, ADT must figure out how to lower its monthly costs now that there are more competitors in the market.
The ADT equivalent of a do-it-yourself project, called “Pulse,” is expected to make its debut later this year. This, along with the acquisition of LifeShield (another home security provider) shows ADT is trying to step up its game to effectively compete. However, it will take time before these investments are reflected on earnings reports and within the market.
While earnings may be taking a nosedive, CEO James D. DeVries is upbeat about the future of the company, “Attrition improvement will not always be linear, and we expect improvement ahead as we continue to emphasize high quality customer selection and superior customer service in all aspects of our business,” he said.
Home Security Camera Market Expected to Reach $1.3B in Coming Years
A study conducted by Market Research Future (MRFR) said the home security camera industry will grow exponentially in the coming years, and will be worth as much as $1.3 billion by 2023.
According to the study, the increase will be driven by crime rates in developing countries. The report names durability and easy installation as differentiators for companies that will grow and accelerate in the coming years.
While North America is expected to stay dominant in the home security camera industry, several other countries are named as key players, including India, China, and Japan. The report also suggests that there will be a proliferation of new entrants into the security camera industry in North America, which is expected to bolster sales of cameras in the coming years.