Nest discontinues DIY home security system

Last month, Nest confirmed the discontinuation of its Nest Secure DIY home security system in a box. The kit, released in 2017, sold most recently for $399. Parent company Google is far from out of the home security business, however. The decision to shut down the product comes just a few months after Google invested $450 million in professional security leader ADT. Google also continues to sell a wide variety of home security products, including video doorbells, security cameras, and more.

The penetration of smart home products continues to rise, especially security devices – making Google’s investment into ADT all the wiser. Interpret’s Smart Home Matrix® pegs “smart” (interactive) home security ownership at 13% of US consumers, and standalone networked security camera penetration at 9%. Despite the increase in smart home offerings from big tech companies and their subsidiaries, corporate giants have yet to displace the traditional pro-installed home security providers, such as ADT, in which Google now has a 7% stake.

Smart Home Matrix® indicates that 19% of all security system owners are using ADT as their home monitoring provider, and 16% report that they self-monitor their system. Traditional pro-monitoring providers are reluctant to disrupt their profitable monthly monitoring revenue structure by providing self-monitored solutions, and device makers are reluctant to build the installing dealer channels required to provide integrated security solutions.

“Nest’s retreat from the systems business signals the difficulty of selling a complete home solution without the assistance of an installing dealer and further explains the company’s decision to invest in ADT, the largest security dealer in the US,” explains Stuart Sikes, Senior Vice President at Interpret.  “That said, it does open the door for competitors to gain some business for customers who do prefer DIY solutions.”