Interoperability challenges create new opportunities for security providers to differentiate through service, integration, and connected home expertise
New research from Parks Associates finds US security dealers are facing renewed challenges integrating customers' existing smart home devices into professionally installed security systems. Adoption of smart home devices, including smart cameras, locks, lighting, and thermostats, exceeds 50% of US internet households, and consumers expect these connected devices to work together seamlessly.
According to the firm's Security Dealers Perspectives: Views from the Front Line, 57% of security dealers say integrating customer-owned smart home devices with a security system is difficult or very difficult, up from 44% in 2022. The upward trend signals that interoperability remains a growing operational challenge.
"Consumers are building connected homes one device at a time, often across multiple brands and ecosystems, and the expectation is on security companies, smart home device manufacturers, monitoring companies, and ISPs to make these solutions work together," said Jennifer Kent, SVP and Principal Analyst, Parks Associates. "Security dealers are positioned to simplify installation and reduce complexity in the connected home, so the companies that can best leverage this channel will win and retain customers."
At the same time, dealers continue to navigate growing competition from DIY security solutions. Parks Associates research finds 74% of security dealers report losing sales to DIY security systems and standalone devices such as cameras and video doorbells, up from 51% in both 2022 and 2023. The findings reveal the challenges dealers face in the expanding smart home market but also the opportunities to use their professional expertise, interoperability, and ongoing service as key competitive differentiators.
As smart home adoption continues to grow, security providers are moving beyond traditional intrusion protection toward broader connected home experiences. Successfully integrating third-party devices while delivering reliable installation, ongoing support, and managed services can strengthen customer satisfaction and create additional recurring revenue opportunities.
"The connected home has become a competitive advantage for security providers," Kent said. "Consumers want flexibility in the devices they choose without sacrificing reliability or support. Dealers that can bridge multiple ecosystems while delivering professional service will be best positioned as the market continues to evolve."
The findings are part of Parks Associates’ Security Dealers Perspectives: Views from the Front Line, a primary research study that examines residential security dealer perspectives on competitive dynamics, technology integration, business strategies, and consumer demand.
To speak with an analyst or for more information, contact Mindi Sue Sternbliz-Rubenstein.
About Parks Associates
Parks Associates helps companies identify new opportunities, refine strategy, and accelerate growth in connected technology markets through data-driven insights and industry expertise. With more than 40 years of experience, the firm delivers proprietary consumer and industry research, market forecasts, and strategic analysis that guide business decisions across personal, connected home, small business, and commercial technology ecosystems. Parks Associates supports clients in navigating evolving markets including AI, security, smart home, broadband, entertainment, energy, multifamily, smart buildings, and connected health.
The firm also fosters industry growth and collaboration by convening thousands of leaders each year through its flagship executive conferences, including CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. Learn more at https://www.parksassociates.com.
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