Smart Market Product Assessment: Networked Cameras provides a comprehensive analysis of the networked camera market, including the opportunities and barriers to drive adoption forward. Expansion into the retail channel helps overcome barriers in consumer awareness and product availability but represents a threat to the security dealer channel.

“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 centres and device displays that can demonstrate key security and convenience use cases. Wireless connectivity also makes it easier for consumers 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.”

Among US 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.

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 shows that the adoption of networked cameras has stayed within the 9%-10% range in the last five years; also, among networked camera owners, 20% control it with their voice assistant on their smartphone, while 19% control it through their smart speaker; and professionally monitored households lead in adoption at 29% over all broadband households at 10%.