A recently released report from Parks Associates, “Smart Product Market Assessment: Networked Cameras,” estimates that 7.7 million standalone and all-in-one networked/IP cameras will be sold in the U.S. in 2018, with $889 million in associated revenues. These findings are based on a survey of 10,015 U.S. broadband households that are owners of networked cameras, which was conducted in the fourth quarter of 2017. The data show that 7 percent of networked camera owners who were surveyed purchased their cameras from security dealers, while more than 90 percent were purchased from other sources. (See corresponding graph.)
“IP cameras are key security-related devices and provide peace of mind to consumers. As such, these devices are consistently among the most popular smart home devices,” said Dina Abdelrazik, research analyst at Dallas-based Parks Associates. “Currently 9 percent of U.S. broadband households own one, but advances in image recognition and ease of self-installation, combined with a strong user experience, are driving increased adoption, with retail channels (online and in-store) starting to dominate sales.”
DIY cameras represent the majority of sales, according to Parks Associates’ research, which asserted that these products are improving consumer experiences for installation, setup, and usage. Consumers still value recommendations and setup assistance, though. Seven out of 10 consumers planning to buy a networked/IP camera would consider recommendations from an insurance or security company to be “important or very important.” New parents and pet owners, in particular, make for strong target markets, the research indicated.
“When consumers interact with their smart device more frequently, they are more likely to recommend it to family and friends,” Abdelrazik said. “AI and the integration of voice control will help drive further engagement with consumers, which will continue to drive positive consumer experiences. While consumer privacy concerns do exist with networked/IP cameras, we project double-digit growth for the IP camera market, as consumer familiarity rises, price points continue to drop, and millennials buy homes, acquire pets, and begin having families.”
Parks Associates’ market assessment notes that voice integration and the development of AI as it relates to image and sound recognition will drive the next generation of networked cameras. More than 80 percent of consumers who own or plan to buy a networked camera consider image or sound recognition abilities to identify safety and security events (such as glass breaking or a person falling) to be appealing or very appealing.
Parks Associates released the “Smart Product Market Assessment for Smart Thermostats” earlier this year. The firm plans to produce multiple “Smart Product Market Assessments” throughout the year including smart lighting market, smart door lock market, video door bell market, smart speaker and personal assistant market, and more.
Visit www.parksassociates.com for more information.