Parks Associates: DIY/Self-Installation Dominates New Networked Camera Purchases, But Video Storage Offers Future Revenue Opportunities

Parks Associates' Smart Market Product Assessment: Networked Cameras reports 68% of owners self-installed their networked camera in Q4 2018, compared to 49% in Q4 2016. This shift toward DIY options comes as both ease of use and retail availability appear to be driving growth in these product areas.

"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 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."

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