Publish Date: May 05
Purchase Report Online

As the market for residential monitored security matures, the product and service mix for home security, safety, and environmental monitoring solutions will adapt accordingly. This report analyzes the market for home security products and services, focusing on their integration with Internet-enabling technologies and the emerging safety and security features that leverage a growing number of advanced communications and telemetry solutions. It also provides forecasts for 2005 and beyond.

“The market for home security and safety services will take on a new face, thanks in large part to such innovations as broadband Internet connectivity, emerging communications solutions, and affordable and reliable do-it-yourself products,” said Kurt Scherf, vice president and principal analyst for Parks Associates.

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Overview

1.0 A Summary of the U.S. Home Security Market
   1.1 High Growth in the 1990s
      1.1.1 Reasons for High Growth in the 1990s
   1.2 2000 – Present: Reasons for a Slowing Market Place
   1.3 Current Trends
   1.4 Revenues for the U.S. Residential Security Market
   1.5 Consumers and Their Security Systems
   1.6 Scenarios for the Future

2.0 Profiles of Selected Security Companies
   2.1 ADT Security Services, Inc. (the #1 U.S. Residential Security Provider)
   2.2 Brinks Home Security (#2 Dealer in Nation)
   2.3 DSC
   2.4 GE Security (#2 Residential Equipment Security Manufacturer)
   2.5 Home Automation, Inc. (an Example of ISSC)
   2.6 Honeywell Security (formerly ADEMCO) (#1 Residential Equipment Provider)
   2.7 Monitronics
   2.8 NAPCO Security Systems, Inc.
   2.9 On-Q Home (Example of Structured Wiring Selling to Security Dealers)
   2.10 Ranger American
   2.11 X-10 Limited (Example of Security Lighting Additions, DIY Security Systems, and Webcams)

Security System Forecasts: 2005 and Beyond

1.0 Executive Summary
   1.1 Forecast Methodology
      1.1.1 Housing
      1.1.2 Housing Value
      1.1.3 New Housing Starts vs. Existing Housing
      1.1.4 Data Sources
      1.1.5 Forecast Techniques
   1.2 System Classifications
      1.2.1 Mass-Market Monitored Security Systems
      1.2.2 Custom Monitored Security Systems
      1.2.3 Do-It-Yourself Security Systems
      1.2.4 Dealer-Installed Security Systems
      1.2.5 Intelligent Security Systems
   1.3 Key Forecast Assumptions
      1.3.1 Base Housing Stock
      1.3.2 Housing Value Categories
      1.3.3 New Home Sales
      1.3.4 System Classifications
      1.3.5 Replacement Sales
      1.3.6 Hardware Pricing
      1.3.7 Average Price for Monitoring
   1.4 Summary of Findings
      1.4.1 Initial Sales of Security Systems by Category
      1.4.2 Total Homes with Security Systems
      1.4.3 Total Residential Security Revenues
      1.4.4 Remaining Market Size

2.0 Sizing the Market: Housing Penetration by Market Segmentation
   2.1 Existing Housing Forecasts
   2.2 Security Unit and Penetration Forecasts: Existing Homes
   2.3 New-Start Housing Forecasts
      2.3.1 Security Unit and Penetration Forecasts: New-Start Homes
      2.3.2 Security Unit and Penetration Forecasts: Total Initial Sales
      2.3.3 Total Homes with Security Systems

3.0 Security Industry Revenue Forecasts
   3.1 Average Security System Price Forecasts
      3.1.1 Do-It-Yourself System Hardware
      3.1.2 Regular Dealer-Installed System Hardware
      3.1.3 Intelligent Security System Controller Hardware
   3.2 Residential Monitoring
   3.3 Residential Labor Revenue
   3.4 Total Residential Security Revenues

Overview

U.S. HHs Security System Penetration: All and Monitored
Security System Usage Patterns
Security Systems Sales in Detail
High Growth in the 1990s
U.S. Crime Rates for Home Burglary
Slower Growth in U.S. Home Security
Current Trends
Security System Revenues at End-User Dollars
Security System Penetration by Age (among Internet Households)
HH Income among Monitored Security Internet HHs
Monitoring Services among Internet HHs
External Remote Control over Systems
Internal Remote Control Appeal
Appeal of New Features for Home Systems

Security System Forecasts: 2005 and Beyond

Figures in Section 1.0
Comparison of Security Levels According to Installation Type
Housing Definitions
Forecast Model for the Residential Security Market
Total Existing U.S. Households
Total Available Market for Residential Security Systems
Breakdown of U.S. Households by Type
Market Value of Primary Residence
2001 Security System Penetration by Category
Average Single-Family Home Value in Current Dollars vs. Constant Inflation
Issues Affecting New Housing Starts vs. Existing Housing
Sources of Disaster
Forecast Data Sources
Parks Associates’ Assumptions for the Security Industry’s Evolution
Forecast Drivers
The Basic Security System
Time Scenario for Return on Mass-Market Security
Security Product Evolution
Direct Marketing for Low-Price Security Systems
The Pros and Cons of Mass-Marketed Security Systems
Integration of Home Controls with Home Security
Inputs to Parks Associates' 2001 Housing Forecast
Total Existing Single-Family Housing by Dollar Value
Percent of Home Builders that Offer Security Systems as Standard or Optional
Dealer-Installed Penetration for Existing Single-Family Homes
Percent of Replacements Out of Security Controller Sales
Average End-User Price of a Security System
Monthly Monitoring Price by Company (2001)
Initial Sales of Security Systems by Category
Percent of Total Homes with Security Systems
Total Residential Security Revenues (in millions)
Number of U.S. Households Without a Security System

Figures in Section 2.0
Total Existing U.S. Households
Total Existing Single-Family U.S. Homes by Home Value (Percentage)
Number of Existing Homes Adding Dealer-Installed Security Systems
Total Existing Single-Family U.S. Homes Adding Dealer-Installed Security Systems by Home Value (Percentage & Thousands)
Number of Homes Replacing Existing Security Systems
Percentage of Existing Homes Adding Dealer-Installed Security Systems
Number of New U.S. Housing Starts
Total New-Start Single-Family U.S. Homes (Percentage)
Percentage of New Homes Adding Dealer-Installed Security Systems
Number of New Homes Adding Dealer-Installed Security Systems
Total New-Home Starts Adding Dealer-Installed Security by Home Value
Total Initial Sales of Security Systems
Total Initial Sales of Security Systems by Category
Initial Dealer-Installed Sales to Single-Family Homes by Home Value
Percentage of All Homes with Security Systems by Security System Type
Number of Homes with DIY Security Systems
Penetration Rate for Dealer-Installed Security Systems
Total Single-Family Penetration for Dealer-Installed Security by Home Value
Total Number of Homes with Dealer-Installed Security Systems

Figures in Section 3.0
Average Security System Controller Price
Security System Controller Revenues
Average DIY Controller and Sensor Prices
DIY Sensor Prices by Home Value in Dollars
DIY Controller and Sensor Revenues
DIY Sensor Revenues by Home Value in Dollars
Average Dealer-Installed Controller and Sensor Prices
Regular Dealer-Installed Sensor Prices by Home Value in Dollars
Dealer-Installed Controller and Sensor Revenues
Regular Dealer-Installed Sensor Revenues by Home Value in Dollars
Average ISSC Controller and Sensor Prices
ISSC Sensor Price by Home Value in Dollars
Total ISSC Revenues
ISSC Hardware Revenues by Home Value in Dollars
Average Monthly Monitoring Fees
Total Monitoring Revenues
Forecast of Total Monitored Revenues by Home Value in Dollars
Monitoring Revenues by Housing Category
Percentage of Monitoring Revenues by Type (DIY vs. Dealer-Installed)
DIY Revenues by Category (Monitoring and Hardware Revenues) in millions
Dealer-Installed Labor Revenues
Hardware, Labor, and Monitoring Revenues in millions
Number of U.S. Households Without a Security System

© June 2005 Parks Associates
Dallas, Texas 75230

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