This article originally appeared in the January 2025 issue of Security Business magazine. Don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter if you share it.
After a spike in purchases of safety, security, and technology products during the pandemic, the latest Parks Associates research indicates security system adoption has stabilized at roughly 32% of U.S. internet households.
Heading into 2025, economic headwinds continue. Though inflation has come down, the overall pricing of goods and services is still higher than several years ago, restraining consumer purchasing power. Mortgage interest rates have also come down slightly, but housing prices remain high and inventory is limited, restraining home sales.
Residential security system providers must prove their value to attract customers to buy into the fuller capabilities of a system and to retain customers eyeing cheaper options.
Purchase Rates Down; Pro Installs Steady
Parks Associates research indicates that less than 10% of security system owners reported purchasing their system in the past year – matching a low point since the beginning of the pandemic. When considering the margin of error, this rate is at near parity with recent quarters, but the slow housing market and depressed consumer spending are having an impact on security system sales.
While security system sales are depressed, professionally installed systems appear to be weathering the storm of high interest rates, a volatile housing market, and constrained consumer spending slightly better than DIY systems. Professional installation has slowly gained back market share after bottoming out during the pandemic, and it now accounts for 45% of recently acquired systems.
With the rebound of professionally installed systems comes higher prices paid up-front and higher ongoing service fees, as these systems include more smart home devices and are more likely to be professionally monitored for a premium.
Security devices – video doorbells and smart cameras – are down slightly, following historic summer patterns. Expect security device purchasing to rise again at year-end with holiday shopping, thus continuing the expansion of the home security market into a wider portfolio of systems, devices, and services that meet consumers’ varying needs.
Interactive Systems Become Standard
Security providers must continue to focus on providing exceptional value to retain customers in a still-sluggish housing market. Local integrators risk falling further behind without modernizing their sales approach and offerings.
Nearly all security systems sold today are interactive systems, with at least basic remote control/app functionality. Smart home devices and home automation applications are the top trigger for purchasing a security system. Providers should limit traditional offerings and focus on interactive systems. Interactive systems are the foundation for much of the value of today’s security proposition, including remote arm/disarm and a foundation for smart home devices, enabling automation, real-time alerts, and enhanced control.
Research Details
This article is excerpted from the Parks Associates Residential Security Dashboard. Consumer Insights Dashboards present survey-based consumer research that tracks the movement of foundational market metrics, such as product or service adoption, household spending intentions, installation trends, and key tracking metrics on leading industry players.
Parks Associates surveyed 8,000 U.S internet households this quarter. The survey results represent all U.S. internet households by demographics, which, as of year-end 2023, are 92% of all U.S. households. Research is delivered twice throughout the year and includes details of adoption and growth of home security systems. For more information on this research, email [email protected].
