With surveillance cameras, consumers evaluate a company’s offerings on how well they fit into how those consumers define ‘convenience’, and how easily cameras can be integrated into their daily routines. “A smart home business model built solely on devices is not sustainable as eventually cameras, and many other smart home devices, become commodities.
“ In a few years or less, the leading consumer smart home surveillance camera brands will look more like software developers than device companies,” noted Jack Narcotta, Principal Industry Analyst, Smart Home Strategies. Surveillance Camera Features (Source: Strategy Analytics, Inc.) Cameras from brands that either cannot or choose not to enhance their software offerings will be viewed as commodities, at best relegating these brands to the sidelines, at worst knocking them out of the camera market altogether.įigure 1.
Companies already well down the path towards software, such as Amazon (Blink and Ring), Arlo, and Google (Nest), will further entrench themselves at the top of the market, as well as enjoy a head start on earning them new customers and protecting their installed bases. The hardware-first business model that has spurred tremendous growth in this smart home device segment for brands such as Wyze, Xiaomi, Reolink, and Eufy, as well as dozens of Chinese companies over the last five years is showing signs of winding down. As differentiators other than the lowest camera selling price begin to fade for most brands it is becoming clear that device-only business models will become unsustainable. Ring, Nest, and Arlo are the Catalysts Moving the Market towards SoftwareīOSTON-(BUSINESS WIRE)- Some of the largest smart home surveillance camera brands – Arlo, Blink, Nest, Ring, and Wyze – remain in control of the surveillance camera market, though a sea change is imminent, according to the latest research published in Strategy Analytics’ Smart Home Camera Market Analysis and Forecast - October 2021.