New research from Parks Associates finds U.S. 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 U.S. internet households and consumers “expect these connected devices to work together seamlessly,” according to the company announcement.

According to Parks Associates’ “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,” according to the Parks Associates announcement.

“Security Dealers Perspectives: Views from the Front Line” is “a primary research study that examines residential security dealer perspectives on competitive dynamics, technology integration, business strategies and consumer demand,” the announcement says.

“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,” says Jennifer Kent, senior vice president and principal analyst for  Parks Associates, in the company announcement.

“Security dealers are positioned to simplify installation and reduce complexity in the connected home,” she says, “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,” according to the Parks Associates announcement.

“As smart home adoption continues to grow, security providers are moving beyond traditional intrusion protection toward broader connected home experiences,” the announcement says. “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,” says Kent in the Parks Associates announcement. “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.”

From the Security Sales and Integration article, "Dealers: Integrating Customers’ Smart Home Devices Is Difficult"