Smart home camera and doorbell markets – what is new?

Cameras and doorbells of 2022 and beyond will be defined by the quality and capabilities of their software and embedded components, Strategy Analytics predicts

A home security camera or smart home camera is a surveillance device that can be installed either outside or within the house/building to monitor suspicious activities in and around the premises. Various cameras, such as wireless cameras, IP cameras, dome cameras, and PTZ cameras, enable users to access and monitor the camera using smartphones.

In the next phases of the smart home surveillance camera and doorbell markets, it will be less about how sharp their hardware “eyes” are and more about how sharp their software-powered “brains” are. A new power trio – component makers, software developers, and applications delivery platforms – will take the keys and step into the driver’s seat, Strategy Analytics reports.

This will be a huge sea change for camera and doorbell markets globally where growth has been partially tied to the latest image processor or camera lens. And there’s evidence the sea change already started.

Big consumer brands like Arlo, Nest, SimpliSafe and Ring, as well as interactive security companies such as ADT, Alarm.com, and Vivint are already well on their way in this regard. These companies are setting the tone as far as implementing trainable facial recognition, package detection, object tracking, and human detection into their video doorbells and across their entire camera portfolios and making them available on multiple generations of camera and doorbell models as unlockable features. Not quite smart home-as-a-service, though inching closer to that concept.

The hardware that provides higher-resolution video, clearer full-color night vision, and a wider field of view will still be important, just as camera lenses, battery life, and processor speeds are still important to smartphones, for example. However, as with smartphones, smart home cameras and doorbells will soon be evaluated on how intelligently and autonomously they act on the data they observe and collect.


Any smart home device business, not just cameras or doorbells, that relies only on hardware differentiators is not sustainable and will eventually collapse as components once reserved only for premium brands become available to all. Thus, creating sustainable businesses built on software-enabled features will emerge as a focal point for many companies. With smart home device commoditization inevitable, the competitive advantages of enhanced capabilities enabled by software and embedded intelligent components are too prominent to dismiss.

Product Insights Smart home camera

In terms of value, the wired camera segment dominated the market with a revenue share of over 50.0% in 2020. Wired security cameras are more secure, less expensive, and highly reliable because they can run on battery power. Consistency in video production is more important than ever. There are no monthly charges for cloud storage.

In addition, the recording devices are more complicated than the cameras in these systems, with cameras themselves being less expensive than their wireless counterparts. Thus, customers can save money by adding extra cameras to the system. To allow several devices to run simultaneously without overburdening the network, these cameras often use a single-cable Power Over Ethernet (PoE) connection. Companies are constantly adding new features to wired cameras, such as improved night vision, two-way audio with echo cancellation, and customizable motion zones.

The wireless segment is expected to register the highest CAGR of 18.4% from 2021 to 2028. Wireless technology-enabled security systems are one of the most significant advancements in home security solutions and IoT, with many homeowners preferring them for effective protection. For those that already use smart home products like Amazon Alexa and Google Assistant, smart cameras are a welcome addition to a broader smart home system.

Regional Insights

North America dominated the market with a share of 40.1% in 2019. This is attributed to the increasing number of one-person or two-person households in American countries, such as the U.S., Canada, and Mexico, thus urging consumers to invest in household security devices in the absence of residents. Increasing penetration of smart homes in the region is also boosting the demand for a smart home security camera as an aid to access control over the safety of the households. According to the European Commission, in 2017, Smart Home revenue in the U.S. is expected to grow over three-fold between 2016 and 2021, exceeding USD 32 billion.

Asia Pacific is expected to expand at the fastest CAGR of 16.3% from 2020 to 2027. China accounts for a major share in the regional market owing to rising infrastructure development as well as increasing construction activities to address the growing population. Major home improvement projects undertaken by consumers owing to rapid urbanization and the growing purchasing power of the people in the region are boosting the demand for smart home security solutions, such as smart security cameras. The growing trend of smart homes, coupled with demand for smart appliances for home automation and security, is driving the regional market. Moreover, increasing awareness among consumers about the growing crime rate is boosting the adoption of smart security cameras.

 

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