One of the clear takeaways from Strategy Analytics’ recent Smart Home Consumer Survey is that the market for security services holds a lot of potential.

The survey asked consumers to rate their level of interest in free services – that is, those that don’t require recurring monthly fees – for professionally monitored security. Overall, 45% of consumers surveyed reported a high level of interest in these services.

The finding that a large number of consumers are willing to adopt fee-free security is interesting. But what’s really interesting is that those same consumers are willing to pay for security at about half the monthly rate the major providers currently charge.

With all of this unmet demand, the opportunity is there for established and upstart players to grow or gain traction in the marketplace by delivering security services to price-sensitive consumers.

There are already some service providers focused on this opportunity. Frontpoint, for example, offers professionally-monitored security services to customers who are willing to install the hardware themselves. Presumably, the recent partnership between LG and ADT, which pairs ADT’s professional monitoring services with an LG-branded all-in-one device, also aims at consumers seeking a lower-cost, DIY solution to home security.

Through partnerships and creative business models, other companies are trying to reduce the total cost of ownership of security-related devices. In the US, State Farm, for example, is offering discounts on policy premiums to customers who also subscribe to home monitoring services through ADT, Alarm.com’s partners, Canary, or Lowe’s. (According to State Farm, the average cost of a fire claim is nearly $35,000, so it’s easy to see why they’re willing to offer a discount to customers who have the ability to identify emergencies immediately even while away from the home.)

Another finding of note bolstering these initiatives is that home insurance providers rank second only to security service providers as consumers’ preferred security providers. Insurance firm More Th>n in the UK revealed at a recent conference there that it will provide home insurance free if consumers subscribe to its upcoming home monitoring service.

Many of these ventures are still in early stages of development, but the survey results indicate that there is considerable room for new business models in the security marketplace. And the companies that are most likely to succeed will be those able to deliver the capabilities in which consumers are most interested at the price point they expect.

This month, we published Global Insights from Strategy Analytics’ Smart Home Consumer Survey, which outlines consumer interest in smart home systems and services, how much they are willing to pay for select capabilities, and from which providers they are most likely to make a purchase, among other findings. The report draws on feedback from more than 7,000 survey participants in France, Germany, Italy, Spain, the United Kingdom, and the United States.