Through the keylock: the home security sector transformation in the digital era

Technological revolutions, such as electrification, motorisation of transport or digitalisation, have been the main drivers of economic development. These revolutions not only see the emergence of novel sectors but also disrupt established industries. This paper focuses on how the latest revolution, characterised by ICT, the internet of things and AI technologies, is disrupting existing industries focused on the case of the home security sector. Using a large catalogue retailer in the UK, the paper examines the product range offered within the home security category, analysing product descriptions to understand the level of digitalisation in the sector. In a second step, the paper characterises the sector by examining firms offering products related to the internet of things, and by looking at their characteristics, such as age and sector of activity. The analysis shows that the introduction of smart products within this sector is led by newly created firms specialising in digital innovation and connected products. These firms are in turn bought by larger groups, leading the technological revolution. The paper finally reflects on the change in industrial structure occurring in mature sectors following the introduction of innovative products linked to the current technological revolution. It discusses the relative role of incumbents, start-ups and the dominant companies leading the technological revolution in this diffusion process.