The future for the security industry, whether serving the consumer, small-to-medium business (SMB), or commercial market lies in add-on services and the ability to bring new systems to market with easy installation, various monitoring options, and extended value.
For the consumer market, Parks Associates research of 10,000 internet households shows every add-on service tested received more than 60% of security owners having interest. Fire is a no brainer, but the strength of PERS and vehicle monitoring interest is new and higher than in the past.
Increased crime and non-stop reporting on crime may be partially responsible for increased interest in these services. So may the nation’s polarization and a sense, in some cities and regions, that the police will not arrive in time, or that immediate notification is necessary to prevent high-cost damages.
Rates of interest in add-in services displayed below are among owners, a set already accustomed to monthly fees, and all services garner high interest. The highest interest accrues to fire and gas safety and then PERS. While PERS is traditionally thought of as an elderly use case, there is an opportunity to provide personal safety services to all age groups, particularly runners, hikers, those working night shifts or in isolated circumstances.
Three different video services all gain between 64% and 69% interest. Providers must determine how to evolve this interest into new revenues and seize the service opportunities most valuable to their customers – or some other provider will.
In addition to interest in add on service options, ease of installation continues to be important for consumers when selecting security solutions. DIY systems began their significant growth in 2015. Reluctance to invite professional installers into the home during the pandemic further increased self-install. Now, almost half of security system owners report their system was self-installed.
Overall though preferences for DIY installation have not changed significantly since 2018. Among households intending to purchase a security system, DIY systems have been and still are highly desirable and smart phone interactivity is a near must. Most Intenders want access to smart home devices, and most seek to purchase a system they can install themselves.
DIY system purchases are much more likely to be triggered by security events. 49% of DIY system owners report that they purchased their home security system due to a burglary at their home or the home of a loved one – compared to just 27% of professionally installed system owners. DIY systems may be reaching a new customer segment living in neighborhoods with higher crime rates. Notably, income levels are relatively even between DIY and Pro-install owners.
As 2022 comes to an end, security players are looking to increase subscribers and RMR. This will be achieved through acquisition and leveraging advanced tech to introduce new and more robust services. Further integration across products and new partnerships will help to grow the opportunity. In addition, the focus on multifamily and the "proptech" space, as well as the small to medium business opportunities, will help security solution providers continue to experience high demand and growth.
This is an excerpt from Parks Associates ongoing research in the residential security market. We love comments and feedback. Thank you for your great support of our research work.
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