One Analyst's Highlights From CES: 'A Surge In Devices, DIY, And Full Home Security System Integration'

Imperial Capital on Thursday issued an industry update following the CES 2016, highlighting security and home automation solutions along with a rise in interconnected DIY products. Analysts Jeff Kessler and Saliq Khan gave their two main highlights following the showcase after observing the technological changes that are expected for 2016.

1. Companies are placing an emphasis on deep learning and artificial intelligence

Kessler and Khan noted that both security and non-security companies are developing products such as cameras that track people's movements and devices that continuously learn and adapt to their surroundings. This trend of automation and monitoring may play a key role in technological advances in 2016.

2. Home control

Analysts at Imperial Capital noted that an increasing number of companies including ADT Corporation (NYSE: ADT), AlarmCom Hldg Inc. (NASDAQ: ALRM) and Control4 Corp. (NASDAQ: CTRL) are facing fierce competition to take market share and automate consumer's homes. For example, ADT recently introduced a new SaaS platform that connects with mobile devices while AlarmCom announced an expansion of its relationship with Apple Inc. (NASDAQ: AAPL) and having its systems integrated with the company's mobile products as well.

As the home security systems become more advanced analysts believe that it will take continued innovation to stand out with consumer convenience in the home automation systems being important.

Overall, Imperial Capital believes that with the introduction of total premises control, family communication, and mobile health monitoring there is a real value proposition for innovation in the home security system integration market. As partnerships with popular mobile device makers increase Imperial Capital believes that this will only accelerate the adoption of full-scale home monitoring systems due to ease of use and practicality.