Each week, the home security industry offers noteworthy news that investors and industry players should monitor to stay competitive and make key strategic decisions. Here’s what to look forward to in this week’s rundown of home security news:
Cloud-Connected Security Camera Systems Startup Hits $540 Million Valuation
Small enterprise security camera system startup Verkada is taking a big bite out of the fast-growing security system industry with its new cloud connected security camera. The small startup raised $40 million in funding and now is valued at $540 million. While it’s only been in the industry for two years, Verkada is slowly making a name for itself thanks to the unique features of its cloud-connected security cameras. Verkada’s cloud-connected security cameras enable its clients to use its easy-to-navigate interface to highlight or zoom in on objects or areas around their commercial buildings and properties. Verkada clients can share a live video feed via a customized private link.
What sets Verkanda apart from its competition is its high-quality encryption features enables a constant feed even when the internet goes out and other unique features, such as its highlighting tool that supports motion-triggered alerts. With these unique features, Verkada’s presence in the security systems market is setting an example for home security systems companies to explore new options for enhancing the user experience.
Forecast Highlights Growing Demand for Wireless Tech in Home Security Systems
Market intelligence firm Fact.MR recently released its latest forecast for the wireless security system market, and its identifying some interesting trends it expects that occur over the next nine years that leaders and investors in the home security industry should monitor. A growing trend for large companies offering security camera kits is that they are forgoing physical kits that require installation for the operation of security cameras and offering software installation via smartphones instead. Thanks to the prevalence of smartphones, this trend has promise to convert to a standard in the future for home security system companies as consumers adopt convenient ways to operate their home security cameras.
The demand for wireless technology continues to push this trend and provides new avenues for home security companies to drive revenue, such as offering storage packages to support data storage and live feeds. Security companies are also finding the lucrative and cost-effective benefits of this move towards pre-installed software on smartphones for home security cameras thanks to its cost-effectiveness and potential to increase profits.
ADT Earnings Report Scheduled for May 7th Release
ADT plans to release its earnings report on May 7th. Wall Street is expecting the company to have a year over increase with higher revenues. The market is expecting at least 1.22 billion in revenue, which amounts to a 9.7-percent increase from the year prior. Although, Zacks Consensus Estimates is suggesting that analysts are going bearish or holding back on the company expected reports. ADT’s earnings report is worth following up with as the company continues to reinvent itself in the home security sector.
Amazon is Testing its Facial Recognition Security System
Amazon continues to break barriers via facial recognition security systems powered by its image analysis service Amazon Rekognition. With facial recognition, Amazon is helping law enforcement identify thieves and others who break the law. The testing is currently ongoing in Oregon but it’s not without issues. Amazon Rekognition has been tested in the past with mixed results with the wrong person being arrested or spotted in the wrong area. Amazon has since performed major enhancements and teamed up with Oregon police officials to be the new testing ground to help law enforcement quickly find those that have committed crimes. Yet, it’s worth paying attention to as enhancements in facial recognition security products for commercial use can serve as an example for companies in the home security sector.