SDM Magazine’s State of the Market: Connected Home

The article, which notes that the connected home space in 2017 continued to be very strong for all players; for security dealers, finding their footing in this everchanging market remains a priority in 2018. The article included Control4, Malibu Wired and some interesting data overall:

There is growth at all levels of the connected home market — from more small and independent dealers, to MSOs, online retail providers and the high-level smart home automation providers like Control4, Draper, Utah. “Control4 has been growing steadily in the last few years, with over 350,000 connected homes and counting,” says Brad Hintze, senior director of product marketing. “In 2017 we grew 19 percent quarterly year-over-year, with our total revenue growing 17 percent over the previous year.”
High-end home automation companies and their dealers were first to this space many years ago. While these dealers still describe themselves as being at the top end of the market, they too are feeling the shifting competition.
Generally we do high-end homes, but in the last year we are tapping into the mid-range homes with 2,000 to 3,400 square feet,” says Tommy Bartnick, co-founder, Malibu Wired, West Hollywood, Calif. “We rarely do just security. Homeowners usually already have an alarm system or camera 90 percent of the time. But that has definitely changed a lot. Alarm systems now are so affordable. At those prices safety is a no-brainer.”
Accordingly, while Bartnick’s company might have done, on average, one out of 10 homes with a security system in 2016, now they are at eight out of 10, he says. “In the last 90 days every project has had some level of security.”
Companies such as Control4 have begun to look at the rest of the market as an opportunity, offering lower-priced entry-level systems that can start a homeowner off small and allow them to grow into a full smart home. “A new addition in 2018 was the CA-1 controller, which starts at $350 to give homeowners who prioritize security, convenience and comfort features, the ability to get started with a smart home,” Hintze says.

Read More