Thursday, October 24, 2019

DIY/self-installation dominates new networked camera purchases, but video storage offers future revenue opportunities

More than 60% of networked camera owners pay for video storage services

Parks Associates’ Smart Market Product Assessment: Networked Cameras reports 68% of owners self-installed their networked camera in Q4 2018, compared to 49% in Q4 2016. This shift toward DIY options comes as both ease of use and retail availability for this product increase.

Smart Market Product Assessment: Networked Cameras provides a comprehensive analysis of the networked camera market, including the opportunities and barriers to drive adoption forward. Expansion into the retail channel helps overcome barriers in consumer awareness and product availability but represents a threat to the security dealer channel.

“Sales of networked cameras will reach seven million units in 2019,” said Dina Abdelrazik, Senior Analyst, Parks Associates. “Retailers like Best Buy have helped boost the profile of this product category through experience centers and device displays that can demonstrate key security and convenience use cases. Wireless connectivity also makes it easier for consumer to self-install. The next stage in competition will hinge on which camera can deliver the best user experience and value-driven use cases; however, for today, basic features such as image quality are top of mind.”

Among US broadband households planning to buy a networked camera, image quality is the most important factor guiding their purchase decision. The demand for high-quality video will also drive post-purchase revenue opportunities to deliver video storage services. One-third of networked camera owners have received a request from friends or family to view or share video from the device.

Among US broadband households that do not own and do not plan to buy a networked camera, 40% report that they do not purchase the device because it provides no benefit to their lifestyle.

“The consumers who report that these devices do not benefit their lifestyle may not be aware of how these devices can improve the safety and security of their homes,” Abdelrazik said. “Manufacturers must continue to provide clear value propositions and innovate to make it easy to set up these devices. Those who have experienced technical issues are less likely to recommend these devices to a friend or family member.”

Additional research:

  • Adoption of networked cameras has stayed within the 9%-10% range in the last five years.
  • Among networked camera owners, 20% control it with their voice assistant on their smartphone, while 19% control it through their smart speaker.
  • Professionally monitored households lead in adoption at 29% over all broadband households at 10%.


For more information about Smart Product Assessment: Networked Cameras, contact sales@parksassociates.com. To schedule an interview with an analyst or to request specific research data, please contact Sherrelle Lewis at sherrelle.lewis@parksassociates.com, 972-996-0214.

About Parks Associates: Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes the Internet of Things (IoT), digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Smart Energy Summit: Engaging the Consumer, Connected Health Summit: Engaging Consumers, and Future of Video: OTT, Pay TV, and Digital Media.

http://www.parksassociates.com

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