Parks Associates’ latest research underscores this trajectory, revealing that nearly half of internet households now integrate security solutions, including networked cameras and video doorbells.

According to the latest research by Parks Associates, the security market indeed has experienced slow and steady growth overall. Now 43 percent of internet households have a security solution — either a system or a device that is a networked camera or video doorbell, explains the Dallas-based research firm’s president and chief marketing officer, Elizabeth Parks.

“Growth in the market is coming from the device, not the system side,” Parks says. “Security systems can provide and need to leverage the many ‘peace of mind’ and ‘comfort and convenience’ devices into the security platform and service offerings. There is demand for various monitored security services that extend beyond the access control points in the home. For example, cyber services or air quality monitoring or energy monitoring services all provide great value and context for the consumer.”

To remain competitive, traditional security system providers need to prove the value of their systems and attached services, Parks explains.

“Providers are pivoting toward aggressive marketing, competitive pricing strategies, and the creation of new value propositions in lifestyle services to regain market share,” she says.

Parks Associates has ascertained that consumers who are new to the smart home market are far closer to the mainstream consumer than to the early smart home adopter, who is often a product champion. For example, 30 percent of “newbies” (those who own 1-2 smart home devices) have a security system — the exact same adoption level for all internet households in the United States. By comparison, 71 percent of “super power users” own a security system.

“The industry needs to focus on the benefits and messaging that will inspire these middle-market buyers to acquire their next 3-5 smart home devices,” Parks explains. “They are underserved in security services, which is a universally appealing value proposition, but messages must be more inclusive, focusing on the practical benefits and ease of integration into everyday life to appeal to this wider audience.”

Other important trends that Parks highlights: Costs, lack of clear benefits, unclear value proposition, and lack of trust are perennial top issues keeping more households from buying smart home tech.

“Emphasizing user-friendly interfaces, affordability and the tangible improvements and convenience these technologies bring can help consumers understand and appreciate the value provided,” Parks adds.

22% of U.S. internet households were projected to own at least one video doorbell by year-end 2023: Parks Associates

Affordability and value continue to be the main barrier for consumers to purchase smart home technology, with Parks Associates research showing that 41 percent of households consider smart home devices as neither affordable nor valuable. A third see these devices as both affordable and valuable.

“Demonstrating real-life scenarios where smart home technology solves common problems or enhances comfort can convey the tangible benefits, persuading consumers of the value in these innovative solutions,” Parks says.

Still, Parks points to a continued sharp decline in buyers acquiring their security systems from local home security companies, which should be a concern for major hardware providers going through the local dealer channel. Whether they own a DIY or pro system, she says, security buyers are most likely to go straight to the source for their systems and make the purchase online.

50 MILLION Americans aged 65+ represent a significant group of later technology adopters: Parks Associates

From the article, "State of the Market: How Smart Home Integration Fuels the Security Market" by Rodney Bosch