Home security monitoring vendors continue to enjoy a dominant position in the U.S. managed smart home market, but according to a new ABI Research report, their market share will plummet over 50 percent as a host of new competitors emerges.

The research firm said that one of the key issues is the established monitored security companies' ability to evolve their stance in the market with a broader set of smart home products and services.

"The potential for each vendor in the managed smart home market stems not just from their current offerings but also from their ability to introduce smart home services to new and existing customers. Monitored security has long seen its market penetration stymied and the ability of smart home applications to widen its appeal is uncertain at best," said Jonathan Collins, principal analyst at ABI Research.

Current monitored security vendors, including new entrants like AT&T (NYSE: T), will be faced with making two choices: bundle smart home service with monitored security or create separate, entry-level smart home services for consumers.

Despite the challenges the players will face, the overall managed home service market is sizeable. ABI forecast that between 2013 and 2019, U.S. managed smart home service adoption will grow 37 percent.

For more: - see the release

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