Security devices have the highest market penetration, with a focus on added value driving subscription adoption
Circana released its Home Automation Ownership and Usage report, highlighting the latest trends in smart home ownership in the United States. According to the report, 59% of U.S. households have at least one smart home product, with security cameras having the highest penetration rate of all categories. While the report shows a decline in sales of security cameras and smart doorbells over the past year (through February 2024), Circana found that promotions and cost-effective products are driving unit growth in the smart home sector.
“Products like security cameras and smart doorbells continue to capture consumer attention, and users are willing to invest in features they perceive as valuable,” said Ben Arnold, executive director and industry analyst for consumer technology and office supplies at Circana. “The industry has an opportunity to attract more security device owners and not only increase device sales, but also grow the subscription base among the remaining 60 percent of current owners.”
Other report findings include:
Of those who own security devices (security cameras, whole-home security systems, smart doorbells), 40% subscribe to a monthly premium service that offers features like 24/7 monitoring, more extensive access to video history, and advanced AI notifications.
Among monthly subscribers, 27% cited access to 24/7 continuous video recording as their primary reason for subscribing, while 19% prioritized improved access to past video clips. The average monthly subscription fee in March 2024 was $13, up slightly from March 2023. The survey also found that 36% of subscribers cover three or more cameras on their plan, up from 29% in February 2022.
Owners of security devices cite keeping their possessions safe as their primary motivation for purchasing. 19% of non-owners say cost, followed by lack of perceived usefulness, is the reason they don't own a smart home product. This sentiment is especially strong among non-owners over 55, with 22% skeptical of the usefulness of smart home products. Demonstrating the value of connected products is key to capturing this important consumer segment.
“The steady increase in ownership rates and continued use of security devices among affluent individuals, homeowners and early technology adopters indicates strong value recognition within the category,” Arnold added. “With continued investment in smart home technology from professionally monitored security providers, the industry has more tools to engage a broader consumer base. Manufacturers need to focus on the tangible benefits of connected devices, such as safety, convenience and efficiency, to drive adoption among new consumer segments and spur growth.”
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