Parks Associates identifies several applications along the spectrum of PERS solutions.
Traditional PERS Devices
Traditional PERS devices have three components: a small radio transmitter, an in-home console/gateway, and an emergency response center that monitors calls. Transmitters are lightweight, battery-powered devices that are most frequently referred to as ‘panic buttons.’ These are often worn as a pendant around the neck, on a wristband, on a belt clip, or held in a pocket. When a panic button is pressed, a signal is sent to the console that activates a call to one or more emergency telephone numbers, including an emergency monitoring center.
mPERS Devices
Mobile PERS (mPERS) often resemble traditional PERS ‘panic button’ devices. The primary difference is that mPERS are self-contained devices that enable users to speak with monitoring center operators via two-way voice in the unit anywhere there is cellular coverage. Although mobile phones with PERS capabilities exist in the market, they are generally not considered mPERS devices.
Home Sensor-Based Systems
Home sensor-based systems that support PERS use cases are a new approach to meeting the emergency needs of seniors. These systems detect events or changes in their environment and alert caregivers or professional monitoring services of an emergency situation.
However, home sensor-based systems are designed to serve more than emergency use cases. Rather than being a stand-alone emergency response tool, sensor-based systems are likely to include features that emphasize overall health and wellbeing and may be part of a larger residential security system also ensuring personal and property safety. For that reason, many in the industry consider home sensor-based solutions outside the PERS definition.
While seniors and caretakers are the target market, there is a rapidly growing market for PERS outside of its traditional demographic of seniors at risk of falls. Currently. 7% of US broadband households report owning a “panic button,” according to Parks Associates' latest research. A growing percentage of younger consumers are purchasing devices or systems with PERS functionality.Self-reported panic button adoption is higher among younger consumers than among seniors. Panic button owners are younger than non-owners –as of May 2020, the mean age of self-reported owners was 41; vs. an average age of 50 for non-owners.
Nearly all industry players agree that the traditional PERS ‘panic button’ for seniors will eventually be replaced by more modern, multifunctional devices and systems; however, the shift is not likely to occur as quickly as many people believe.
For now, many traditional PERS device manufacturers have expanded their businesses to include newer technology and form factors.This new generation of technology is targeted at the caregiver market as well.
Developing Tech for the Caregiver Market
The rapidly aging population in the US combined with a future shortage of caregivers means that more people than ever will rely upon the assistance and technology provided through programs such as Medicare.
As of 2021, almost a quarter of heads of US broadband households report either currently caring for a loved one or expecting to provide care in the next five years. A majority of the cared-for population resides in their own home or a relative’s home.
Caregiver education is critical to raising purchase intentions of traditional and new PERS solutions. Family caregivers who consider themselves “highly familiar” with tested solutions are over twice as likely to intend to purchase one. However, many family caregivers are unfamiliar with new solutions types, are unaware of their benefits, and/or do not know where to buy them.
· 41% of family caregivers are familiar with PERS capabilities
· 38% of family caregivers are familiar with smart watch’s fall detection capabilities
· 31% of family caregivers are familiar with home sensor systems
The industry is undergoing a shift as seniors who have become accustomed to using new technologies expect them to be implemented in their own health solutions and in their homes and we will continue to see a rise in new home-based devices and systems that extend safety functionalities for seniors:
Home Sensor-Based Systems
The market is increasingly moving toward home sensor-based systems as the premier option in senior assistive solutions. In nearly all cases, sensors with emergency response capabilities are one piece of whole wellness and safe living system, rather than a standalone solution. However, unless an mPERS pendant is included with the system, it is for in-home use only – a limitation that may ultimately be a purchase inhibitor for many consumers.
PERS and security industry players must also consider seniors’ discomfort with sensors or ‘intrusive’ technology in the home, and affordability and the lack of coverage by Medicare or private insurance. Companies looking to offer these types of systems may find more success—at least initially—in managed care facilities prior to being widely adopted by consumers in their homes.
Smart Watches
Smart watches, perhaps more than any other alternative, pose a threat to traditional PERS devices as their capabilities continue to increase. They are more attractive, multi-functional, and have the marketing power of the tech giants behind them. Although affordability remains a factor at this time, device costs will continue to decrease as the wearable market matures. PERS players should consider integrating with existing smart watch technology platforms, rather than building out proprietary solutions that lack the visibility of leading technology brands and may still be seen negatively by seniors.
Smart Home Players
As a business strategy, smart home device manufacturers seek to expand their product appeal to new customer segments. In many cases, smart home products designed for other purposes can address senior use cases. For instance, smart light bulbs can be set at the optimal level to prevent stumbles at night, smart appliances have sensors and auto turn on/off features that can prevent flooding or fire emergencies, and senior assistive skills can be developed for smart speakers already in the home. Taking this concept a step further, smart thermostats often have motion sensors to determine when someone is home and adjust the temperature accordingly. These same sensors could feed into a home sensor-based system to detect household patterns and occupancy.
Players in the broader smart home ecosystem have an opportunity to market their products in such a way that encourages adoption by older consumers and their caregivers or to work with other senior-focused players in the ecosystem to contribute to solutions that are more comprehensive.
This research excerpt is from Parks Associates research library, developed over decades of time, tracking adoption of technology in the home. We welcome all feedback about our research.