While DIY and self-installation dominates new networked camera purchases, new research reveals that the real revenue opportunity for manufacturers will lie in video storage capabilities.
Parks Associates’ Smart Market Product Assessment: Networked Cameras reports 68% of owners self-installed their networked camera in Q4 2018, compared to 49% in that same period two years prior. This shift toward DIY options comes as both ease of use and retail availability for this product increase.
“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.”
Parks Associates: Networked Camera: Most Important Product Capabilities
The real revenue opportunity
What was discovered in the research was that among U.S. 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.
But the value lies in this stat: More than 60% of networked camera owners pay for video storage services, leaving a chance to increase storage capabilities. Another valuable note for manufacturers:
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%.
