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Blake Kozak

Global smart home market still growing

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Wednesday, September 4, 2019

The global smart home market is forecast to grow by nearly a factor of five to reach more than $192 billion in 2023, up from $41 billion In 2018, according to the latest Smart Home Device Database from IHS Markit.

The research firm noted that the United States led all countries in 2018, representing about 35 percent of global market revenue. China was second, accounting for an 18 percent share.


The fastest-growing device types in the market include lighting, smart speakers and connected major home appliances, according to Blake Kozak, principal analyst for IHS.

“The brilliance of the smart home is that it can be molded to suit the requirements of any kind of consumer, from the strictest demands of power users to the simplest automation needs of dabblers,” said Kozak. “Irrespective of consumer tech-savviness, the smart-home market has bourgeoned into a consumer technology heavyweight, eager to move beyond the basics of security and single-family homes and into uncharted opportunities. However, these uncharted opportunities are coming with concerns about privacy and the technology’s readiness for primetime. The remainder of 2019 and start of 2020 will be a pivotal time for the smart-home market as companies and service providers fine-tune their strategies and reposition to compete with the smart home juggernauts — as well as newcomers looking to upend the status quo.”

Smart-home companies look to future opportunities

Kozak pointed out that companies looking to make waves in the smart home market include IKEA and newcomers such as Wyze, which offer ultra-low-cost devices.

He added that major players also will make pivotal strategy changes to enhance their competitiveness, with examples including Google, which recently ended its  “Works with Nest” program. In another example, he pointed to Amazon Alexa, which achieved compliance with the Health Insurance Portability and Accountability Act (HIPPA).

“For its part, Ring is launching into the small-medium businesses (SMB) segment,” said Kozak. “Comcast will focus on its Xfinity platform and hone its strategy around content deployment. Meanwhile, Centrica, which offers the Hive smart home, plans to focus its platform on energy and services.

Software, analytics and partnerships

A brief hiatus in hardware development has prompted smart-home companies to make advancements with software, analytics and acquisitions/partnerships, according to IHS. However, Kozak noted that another hardware push is set to arrive soon, with the arrival of new smart speakers from Google, Apple and Samsung as well as offerings for insurance companies and apartment complexes.

US smart-home penetration rises, despite privacy concerns

Although the U.S. smart-home penetration exceeded 38 percent in 2018, IHS said the market’s further progress could be impeded by privacy concerns, which is why IHS is advising technology providers to take steps to alleviate consumer apprehension.

“Rapid innovation often breeds speculation and mistrust,” Kozak said. “Because of that, smart-home companies should be as transparent as possible regarding data usage. They also should focus on edge-based processing, which reduces the need for cloud-based computing systems that send private data over the internet. The smart home should also make greater efforts to comply with standards and regulations for sectors such as security, healthcare and senior care. By having more standards and regulations in place, innovation in the smart home will be less a source of anxiety for consumers and instead become a cause for optimism and a fulcrum for peace-of-mind.”

The IHS Markit Smart Home Device Database assesses the market for smart home devices including unit shipments, installed base, housing type, route to market, system type, connectivity type, network controller, country/sub-region and market shares.

IHS Markit projects growth, changes for alarm monitoring market to 2022

Company analyst recommends traditional security companies look more at value-added offerings
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05/14/2018

LONDON—IHS Markit, a research firm based here, recently released some insights on the alarm monitoring market in 2017 and what it predicts will happen by 2018 and 2022.

IHS weighs in on smart home deals

Focus is shifting from hardware to software and platforms
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04/03/2017

LONDON—IHS Markit sees disruption in the professional smart home market; Blake Kozak, IHS’ principal analyst, smart home and security technology, talked with Security Systems News about recent smart home deals and what they mean for the industry.

IHS weighs in on CES 2017 trends

Smart home evolves, presents more use cases
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02/01/2017

LAS VEGAS—At this year’s Consumer Electronics Show, the smart home became more refined, according to IHS, presenting more use cases to dealers and consumers.

Why managed access gets adopted, why it doesn't

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Wednesday, January 7, 2015

Managed and hosted access control systems, or access control as a service "ACaaS" has been on the rise for some time now. IHS's Blake Kozak put out a research note today with some interesting ACaaS projections.

From the report: "IHS estimates that newly installed hosted and managed access control doors represented about 3 percent of the total new readers and electronic locks installed in the Americas in 2013. A total of about 80,000 doors of ACaaS were added in the region in 2013. IHS has forecast there will be about 1.8 million total doors of ACaaS in the Americas by 2018."  

ACaaS is good for end users and integrators alike, the report points out.

For integrators, it's a source of RMR and it also increases "stickiness" of accounts. For end users, outsourcing access control provisioning and permissions to an integrator removes a major hassle internally. Very important also, is that the fact that ACaas is sold as a service, so the funds come from the operating budget rather than the capital expenditure budget, making it easier for end users to "sell" internally.

However, Kozak notes that it's not always possible to fully fund ACaaS through the OpEx budget. "For example, a system with 100 doors and 400 card users would likely not use a 100% opex model. The integrator/installer will need to obtain some amount of revenue upfront."
    
Kozak also says that "Web-based panels are continuing to experience growth, potentially impacting the adoption of ACaaS."
    
IHS predicts that we'll see more hybrid systems "a mix of onsite management, monitoring and hosted infrastructure."
    
Finally, the note brings up another important topic: Big Data. A buzzword for sure, but if they can figure out how to capture and collate the data efficiently, access control data, like video data, should be in important source for advanced business intelligence in the future.

Cloudy distinctions with off-site and hosted access control

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12/30/2014

YARMOUTH, Maine—The question of whether cloud-based security systems are synonymous with Web-based access control or hosted systems is one that still hangs over the security industry—like a cloud. It’s not a dark cloud, but sometimes it gets in the way of clarity.

Report: MSOs in best position to benefit from smart security

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11/18/2014

AUSTIN, Texas—Multiple-service operators—the cable companies and the telecoms—are leading the way in integrating security equipment and home automation at the future expense of traditional monitoring companies and high-end providers according to an IHS report.

Online wireless locks moving forward, but not locked into the market

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05/21/2014

Online wireless locks are making inroads in the security industry, particularly on the perimeters of large buildings with hundreds of doors inside.

Video and analytics moving further toward the perimeter

Intelligent devices and video surveillance are becoming important components of perimeter security, and could drive growth in that segment
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12/18/2013

ENGLEWOOD, Colo.—The growing trend of deploying video surveillance and analytics devices for perimeter security is showing no signs of abating.

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