Smart home builders, prepare to get busy. The global smart home market is expected to grow by almost 250% between 2017 and 2019 and is expected to be worth $9.4 billion by 2021.
Smart home automation is among the fastest growing categories on Yelp, a consumer-based recommendations web service. The driving force behind much of this growth is a desire for improved home security. What does that mean for you?
It means more fiber-to-the-premises internet installations because customers will be using more bandwidth than ever before. And it means that if you want to stay competitive and get positive Yelp reviews, you’ll need to stay on top of smart home security developments.
If you want evidence of the importance of home security to the smart home ecosystem, just look at how many options are out there – and which companies are investing in home security. Two of the world’s largest companies, Amazon and Google are funding heavily in security features as they compete for dominance in the smart home market.One day it could very well become a requirement to have certain smart home technologies installed in your home to get insurance coverage. Click To Tweet
Nest is part of Google again after three years as an Alphabet subsidiary. Alphabet is Google’s parent company, and the move is being viewed as evidence of Google’s intention to compete with Amazon in the smart home market. Last year Google spent half a billion dollars establishing Nest Secure Home in the home security market. The nest security system is made up of a hub that connects to a network of sensors, cameras, smart locks, and a smartphone app. What sets Nest apart is the tag that allows residents to tap in and out of the home, eliminating the need for them to memorize codes.
Amazon’s investment in home security includes Blink, a wireless security system that sends alerts and video to the homeowner’s smartphone. Blink’s latest product, a video doorbell offers two-way audio, infrared night vision, and two years of battery life.
Last month Amazon closed a purchase of another video doorbell company, Ring. The sale was a reported $1 billion. Ring founder and CEO, Jamie Siminoff, in an interview with The Guardian, said that the deal makes smart home security more accessible because Amazon’s scale allows for a price decrease. Siminoff also said that the deal gave Ring access to additional resources, including the intellectual property associated with Blink.
Big tech firms are not the only players competing for smart home market share. Smaller companies are finding creative ways to compete in the smart home market as well. Notion, a startup that sells sensors that monitor doors and windows, water leaks, and smoke, is partnering with insurance companies to find ways to help homeowners decrease their insurance bills.
Notion is also exploring ways to use the data collected through the smart home security platform to find ways to predict behavior in a way that enables homeowners to reduce losses. Notion CEO Brett Jurgens, in an interview with Forbes, said that he believes that “one day it could very well become a requirement to have certain smart home technologies installed in your home to get insurance coverage.”
Homeowners are getting creative too, and many are discovering additional benefits to their smart home security products. A Notion customer set up a sensor near her front door and added temperature sensing only because the option was available. When the system started to alert her to temperature drops near the doorway, she realized her weather stripping needed to be replaced.
The future of smart home security
As video technology evolves, video security will change too. For example, facial recognition software can be used to configure security systems to disarm when they recognize the face of the homeowner. Similar technology can be used to monitor neighborhoods, alerting residents when vehicles with unknown plates are in the area.
Amazon and Google are both investing heavily in artificial intelligence (AI), which means AI integration with smart home security may be coming soon.
Whether your customers want to live in a futuristic home with AI-enabled security or they want only simple features like programmable lighting that will deter intruders, they have lots of options.