AI and Face Recognition Grows Across the Connected Home

ESX - Electronic Security Expo is being hosted this week in Louisville Kentucky by ESA - Electronic Security Association , celebrating its 75th year. There is a lot going on in the security industry - much of the activity and changes being driven by tech added into video devices and the services and applications stemming from them. We just finished this great project with Xailient Inc. highlighting the role of facial detection in the smart home and adoption of these devices.

Growth in the Connected Home

Players across the connected home ecosystem are increasingly implementing AI in video devices. In security monitoring, AI helps users reduce notification fatigue by decreasing useless alerts, while also enabling a personalized experience.

• Determining friend from foe: AI can determine who is on camera at the user's property and notify the user if a package is being delivered or stolen. AI can even predict a break-in.
• Assessing threats: smoke alarms with AI identify the actual cause of the smoke and assess the threat level.
• ?Granting access: smart door locks or smart video door locks can use AI by reading biometric data (face recognition, fingerprints, etc.) to allow temporary access to guests or delivery services.

Face recognition is a type of AI technology that is used to identify or verify a person from a digital image or a video frame. It works by analyzing and comparing patterns in a person's facial features, such as the distance between the eyes, nose, and mouth, to a database of known faces.

Security and Safety Devices in the Home

Consumers are embracing smart home devices - 41% of US internet households report owning at least one and 28% own three or more.

Currently, indoor/outdoor smart cameras and floodlights are a popular security solution for consumers. In US internet households, 17% own a video doorbell, and an equal percentage own a networked camera. Announcements this year point to device makers continuing to improve existing features while also expanding their solutions to serve SMB, multifamily housing, and commercial markets. Parks Associates forecasts ownership in video doorbells and smart cameras will grow to more than 25% of US internet households for each category by 2027.

Smart Video Devices: Top Drivers and Barriers

Consumers’ anxieties and the desire to protect their homes and loved ones have driven strong growth of video devices in recent years.

• 57% video doorbell owners report safety and security as a factor for purchasing the device
• 54% of consumers in US internet households report their home is their most significant investment and put effort into protecting it
• 35% report having far more concern about the physical safety of their home than five years ago, up from 27% in Q2 2021
• 9% of consumers in US internet households have experienced a vehicle break-in
• 12% have experienced package theft

Smart Video Devices: Top Drivers and Barriers

Consumers’ anxieties and the desire to protect their homes and loved ones have driven strong growth of video devices in recent years.

• 57% video doorbell owners report safety and security as a factor for purchasing the device
• 54% of consumers in US internet households report their home is their most significant investment and put effort into protecting it
• 35% report having far more concern about the physical safety of their home than five years ago, up from 27% in Q2 2021
• 9% of consumers in US internet households have experienced a vehicle break-in
• 12% have experienced package theft

The top barriers to adoption for video devices are consumers’ concern for their data privacy and security, the cost of video devices, and ease of use and installation. The IoT space is unfortunately vulnerable to data and device hacks. Consumers are aware of these issues and have concerns about connected devices.

• 62% of internet households feel it is impossible to keep data completely private
• 55% of internet households are very concerned about their personal data security
• ?49% of internet households report experiencing at least one data/security privacy problem

In addition to the obstacles of data privacy and security concerns, consumers are reevaluating their spending. The ongoing supply chain issues and inflation have impacted companies, creating higher prices and increased material and labor costs. Prices of video devices started to increase in Q4 2021 and were even higher in July 2022, not a typical trend of technology products, signaling macroeconomic trends are impacting manufacturers.

This is an excerpt from Parks Associates research ?Face Recognition and the Smart Home: Applications, Demand, and Innovation , developed in partnership with Xailient. Thank you for reading our research and your ongoing support.