Welcome back to Industry Shifters.

Today we are exploring the sensational territory of home security systems.

Will the popularity of air quality monitors shift this market’s dynamics?

Let’s find out!

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Air Quality Monitors

Australia is seeing rapid growth in air quality monitoring technology, driven by rising concerns over pollution, bushfires, and climate change. 

While not as accurate as standard air quality monitoring instruments, these sensors offer benefits such as easy deployment, near real-time monitoring, and the ability to create dense networks for localised air quality assessment.

These monitors often measure key pollutants like particulate matter, carbon dioxide, and volatile organic compounds. 

Thus, this technology empowers citizens to make informed decisions about their health and environmental impact, while also providing valuable insights for policymakers and researchers.

Potential Impact

Australia’s security system installation and monitoring industry is worth $2.3bn AUD in 2024.

Provided air quality monitors continue to grow in popularity:

In a low growth scenario, where air quality monitors only come to account for 2% of this industry, the market for air quality monitors would be worth about $46 million AUD.

In a high growth scenario, where air quality monitors come to account for 10% of this industry, the market for air quality monitors could be worth as much as $230 million AUD.

Why this WILL be disruptive:

• Expanding Market Opportunity: Air quality monitors are tapping into a rising consumer focus on indoor air quality, health, and safety, especially in urban areas or regions with bushfire risks. This trend creates new opportunities for home security companies, positioning them to attract health-conscious customers by offering more holistic "home health and safety" solutions.

• Complementary and Integrated Products: Many air quality monitors can be seamlessly integrated into existing smart home ecosystems, enhancing the functionality of home security systems. This integration allows users to monitor both security and environmental health from a single platform, providing added value and convenience for customers seeking comprehensive home management.

• New Revenue Models: Security companies could monetise air quality monitoring by offering premium subscription services for continuous updates and alerts. This premium model appeals to consumers willing to pay more for advanced, integrated home health and security features, adding an attractive recurring revenue stream to traditional security offerings.

Why this WON’T be disruptive:

• Market Saturation and Fragmentation: The smart home market, including security devices, is highly competitive and already crowded, making it difficult for air quality monitors to stand out. Established security companies hold a strong market position, and smaller players may struggle to integrate air quality features competitively. Additionally, air quality monitoring may remain a niche segment compared to traditional security offerings, limiting its broader market impact.

• Privacy and Data Concerns: Advanced air quality monitors collect detailed environmental data, potentially raising privacy issues among consumers who are cautious about sharing granular insights into their living conditions. This concern could reduce adoption rates, particularly among security-conscious users.

• Limited Security Appeal: Since air quality monitors focus primarily on environmental data rather than direct security threats (e.g., intrusion detection), their relevance to home security may be seen as secondary. For many consumers, traditional security solutions may remain more attractive than air quality monitoring, especially if integration increases costs without substantial security benefits.