Parks Associates explains the benefits that will be realized in full once there is an alignment of AI-enabled hardware, system software and intelligent call center services.

Editor’s Note: SSI has partnered with Parks Associates for the creation of DIY FYI, a column designed to help dealers keep track of important smart home market developments, what the competition is and whether they want to jump into something they see as a new opportunity.

The residential security industry saw great strides in 2019, but 2020 will bring new challenges due to the COVID-19 public health crisis the country is facing.

The latest Parks Associates consumer data finds that 33% of U.S. broadband households now own a home security system, representing the most significant increase in adoption in many years. This growth came in part due to widespread availability and awareness of DIY and smart home-adjacent solutions, which made adoption more appealing and affordable to more households.

Now the question going forward is how to maintain this momentum and attract the two-thirds of broadband households without security solutions, especially with so many economic headwinds in 2020.

One area that will serve as a driver of residential security systems is artificial intelligence (AI). AI can bring a host of benefits, which will be realized in full once there is an alignment of AI-enabled hardware, system software and intelligent call center services.

Vertically or partially vertically-aligned players, such as Vivint, are in the strongest position to create and capture the value of AI because they can optimize the whole system, assure quality control and user experience, and monetize each component. DIY could be active in this space, but it will be several years before a DIY solution can match an AI-enabled pro-monitoring system.

Several opportunities will grow out of the way AI impacts the monitoring industry:

Application of machine learning to home security and home automation offers the following benefits:

Other forms of emerging technology, such as sensor innovation, also have the opportunity to drive appeal and push the security market forward. Companies are moving beyond traditional PIR (passive infrared sensor) sensors to offer sensors that utilize WiFi motion technology.

These types of sensors allow for homeowners to map movement in the house using just WiFi and mesh motion sensing without the need of additional devices such as networked cameras.

WiFi Motion, a sensor system created by Cognitive Systems, enables home monitoring through the use of wireless signals that create a coverage zone within the home. If a person, animal, or object enters the zone, the wireless signals are disrupted and a notification is sent to the homeowner. This allows for homeowners to maintain privacy in the home while gaining insights into the activities that are happening in the home, at no additional monthly costs.

Cognitive Systems has also partnered with Plume, Qualcomm Technologies and Stanley Black & Decker to offer its security product called Omni. This product is enabled by Cognitive’s WiFiMotion technology as well as Qualcomm’s mesh networking platform.

Omni’s WiFi mesh network utilizes RF technology to enable the interpretation and detection of WiFi signals in the home. This allows for a framework in the home that can detect motion using those WiFi signals that are identified.

These innovations expand the value propositions for home security, which as an industry has demonstrated resiliency in past downturns. With people spending more time at home, one key use case for security monitoring (i.e., monitoring a house while residents are away) is not as immediately appealing; however, Parks Associates’ consumer research indicates the safety and security of the household and family members is still top-of-mind to US consumers.

Innovations in AI and advanced sensors will enhance use cases and expand the ability of the security industry to adapt to new circumstances while also opening new opportunities for security monitoring in commercial, SMB and communal areas.

Elizabeth Parks is President of Parks Associates.

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