Big changes imminent for smart home camera market

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.

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. 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. 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. 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.

Bill Ablondi, Director, Smart Home Strategies, added, “Strategy Analytics’ research into the consumer smart home surveillance camera market shows specifications, such as 1080p or greater video resolution, advanced night vision capabilities, and integration with digital assistant ecosystems are still important to consumers, though to a much lesser degree than in the past. Competitors in the smart home camera arena know that leadership in this market will soon be based on software and services more advanced than simply enabling cloud storage or remote viewing. The challenge ahead for camera companies will be determining how to successfully transition from selling camera hardware to selling security, monitoring, and safety features.”