Research from Parks Associates forecasts total professional monitoring revenue for the U.S. residential security sector will total $15.74 billion in 2020, with smart home services accounting for $1.2 billion of the total and growing at around 12.5 per cent through to 2024.

The report, IoT: Extending Professional Monitoring for New Revenue, addresses how companies are driving new revenue by extending professional monitoring services beyond residential security to new use cases in the connected home. If the numbers are mirrored locally in ANZ, they suggest while IoT is growing, traditional monitoring services retain high value for serious users.

“The number of connected devices continues to expand year-over-year, and 2019 concluded on a particularly strong note for the security industry,” said Brad Russell, research director, connected home, Parks Associates.

“Security system adoption reached one-third of all US broadband households at the end of the year. Consumers now have an average of 11.4 connected devices in their homes, which opens multiple opportunities to extend monitoring services as well as different varieties of both professional monitoring and MIY (monitor-it-yourself).

“Central monitoring is a high-margin business, and many stations have excess monitoring capacity, driving the industry to expand its value proposition beyond the standard security offering,” Russell said.

“As more aspects of daily life get connected, and as people spend more time in the home, new opportunities emerge that cross multiple industries, including energy usage monitoring, risk mitigation from flood and fire, monitoring the health and safety of aging relatives, tracking of valuables, and appliance maintenance monitoring.”