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The advertisements bombard us constantly. On television, on websites, in your inbox, all with the same message: everyone else is using technology that integrates security systems with home automation and enables remote control of the whole house with smart devices. Why aren’t you doing this too?
The message is being received loud and clear, particularly by younger people who are smart-device savvy and want simpler systems‘ operation and more control over their lives.
“There’s a great revolution in the home security business because of the Internet,” said Richard Soloway, founder and CEO of Napco Security Technologies Inc., Amityville, N.Y. “To continue to grow their business, security system providers need to remain on the forefront of home automation, wireless technology and the cloud to provide the life enhancement capabilities being demanded by more and more people.”
According to global information company IHS, the increase in new entrants attempting to penetrate the North American and European markets for home security—as well as the increased investment they are making in end-user education—is evidence of how prevalent this trend is becoming. According to IHS, this suggests that growth of integrated systems will continue to develop in the residential sector during the short to medium term, providing electrical contractors with more opportunities.
If the days of operating intrusion alarms and fire alarm systems with keypads are gone, what is being integrated with today’s security system?
“Security system and access control components are being integrated with every electrical device in the home, including lighting, HVAC, garage doors, energy management, entertainment, and even small appliances as they become more intelligent,” Soloway said.
Using apps, homeowners can control the entire home anytime from anywhere.
”Control is always at their fingertips,” said Jessie Bumgarner, marketing coordinator for Elk Products Inc., Hildebran, N.C.
Another trend has been the addition of video surveillance systems that can be controlled by smart devices.
“Perimeter cameras can be called upon through the video app, and homeowners can see live-action video on their device,” Soloway said.
In addition, these cameras are being designed with built-in motion detectors that inform the app that the cameras have been activated and are recording.
“Apps and smart devices enable the control that more and more homeowners are demanding from their integrated, connected homes,” he said.
Benefits, challenges and opportunities
The advantage for the homeowner of integrating the security system with the rest of the house’s systems is the convenience of remote control and alerts.
“The challenge is finding a system that is truly customized to fit the homeowner’s lifestyle and needs today and that can grow and change to meet future needs,” Bumgarner said.
In addition, a truly connected home provides homeowners with the ability to reduce electricity costs, according to Soloway.
“Remote control of HVAC and lighting systems can save a homeowner 15–20 percent on the energy bill,” he said.
More important than making life easier, a truly connected home provides high levels of security with 24/7 notification to a central monitoring station and to the homeowner’s smart device.
In the early years of integrated homes, it was challenging to develop a system that wasn’t so complex that the homeowner couldn’t operate it.
“Fortunately, this had led to the development of intuitive user interfaces, compressed broadband use, and plug-and-play installation capabilities,” Soloway said.
Consumers, security dealers and electrical contractors need to know that these integrated security systems exist. The latter parties need to learn the benefits and figure out how to sell the technology to their customers.
“At the same time, companies, such as Google, Apple, Comcast and AT&T, have launched their own connected home products and are advertising them heavily, threatening the contractors’ and security dealers’ market share,” he said.
On the plus side, all these advertisements are increasing consumer awareness of and demand for the technology, which could open up opportunities for electrical contractors that creatively participate in the market.
“Electrical contractors can install the entire connected home system or use the services from professional security, HVAC, audio/visual and lighting subcontractors,” Bumgarner said.
This market also offers contractors recurring revenue.
“Contractors can charge homeowners on a recurring basis for both the functionality that a connected home system provides and for servicing system components,” Soloway said.
The contractor can partner with a third party to house the necessary computer servers.
“Offering integrated whole-home systems is going to be a continuing growth opportunity for both contractors and security dealers,” Soloway said. “Security system equipment and software providers are also poised to partner with contractors to take advantage of this continually growing market.”
Millions of people want the safety and control of their lives that these systems offer.
About The Author
Darlene Bremer, a freelance writer based in Solomons, Md., contributed frequently to ELECTRICAL CONTRACTOR until the end of 2015.