As we settle into the first quarter of 2024 it’s a little easier to assess and get our footing when it comes to what to expect for this year. The DEN Smart Home team exhibited at CES 2024 and it’s always telling to observe the news and trends following that show and what it could mean for the industry for the coming year.
Here are a few of the trends we’ve noticed so far that we think security dealers should be paying attention to.
Artificial Intelligence
At the top of our list is the buzzword that reigned supreme at CES 2024, artificial intelligence. AI is not a new topic for security dealers and many security manufacturers continue to pioneer how the power of AI can be used to enhance threat detection. For dealers in 2024, leveraging AI can take several different forms but it’s important to look beyond what AI offers on a product side and consider how it can bring operational efficiencies to your team.
Take two simple examples that can lead to business results for your team. AI-powered chatbots and virtual assistants can provide enhanced customer service on your company website from customer inquiries and support requests. Not only does it improve the overall customer service experience it streamlines it. AI tools are adept at analyzing data so it’s also a great time to consider how your teams can use AI to manage inventory more effectively.
Watching the Housing Market
The housing market always tends to offer a good pulse for our industry. According to a recent article from MarketWatch, builders scaled back constructing of new single-family homes, leading to an 8.6 percent drop, but ramped up apartment starts, which rose 7.5 percent. The growth in multifamily buildings opens some significant opportunities for security dealers.
Research has continued to show that tenants both want and expect smart home technology from their rental properties and security solutions are some of the most prioritized. Property managers tend to respond to practical solutions like smart locks, smart thermostats and video surveillance. The good news for dealers is that these can be easily scaled, are simple to install, and with the right product mix can offer great margins.
Don’t Discount the Middle Market
Security dealers are often more well-versed in the middle market than most, but maybe you still have questions about what the middle market looks like and how to best serve them. ABI recently released a report that helps shed some light on this growing market:
The “middle market” refers to the class of buyers who have been poorly underserved by the smart home industry, and who are not Do It Yourself (DIY) technology enthusiasts or premium luxury home buyers willing to pay a hefty price for services. Consumers are purchasing products that enhanced security, time saving, convenience, utility bills, and enhanced overall wellbeing. Consumers are becoming tech savvy and comparing product performance before purchasing solutions, so vendors need to prioritize customer engagement, and share use cases for upcoming products and services to keep them informed and expand their client base.
Strategizing for the Year Ahead
In 2024, security dealers would be wise to think about how they can expand their offerings to provide their customers with a full smart home ecosystem to meet their needs. What products will complement your line up? What have customers been asking about that you may have been hesitant to take on? As ABI noted, be prepared for these customers to be well researched on what is available. Don’t be afraid to go back to your roster of existing clients when you have a new offering, that can help keep projects steady and help you maintain credibility as their resource for technology in the home.
The landscape for security dealers in 2024 demands a forward-thinking approach, with AI technology, housing market shifts, and the middle market presenting both challenges and opportunities. Embracing innovation, tailoring solutions to evolving consumer expectations, and harnessing the potential of underserved markets will be key. What trends are you keeping an eye on for 2024?
