Competing in a market increasingly dominated by national chains and tech giants presents significant challenges
Parks Associates’ new primary consumer research, announced today at ISC West, reports only 7% of US internet households that bought a security system in the past 12 months purchased through a local home security company, a significant drop from 22% in Q4 2021. The study Residential Security Dashboard highlights adoption of security systems and the challenges facing small, local security businesses, including limited marketing budgets, lesser brand recognition, and the complexities of offering cutting-edge technology at competitive prices.
The research shows more and more households are buying from national security providers and big-box retailers since 2021. Hardware companies need to help support the smaller players by offering scalable solutions, preferential pricing strategies, and technical support that can help level the playing field.
“Consumers are buying more from national providers and significantly less from the local dealers,” said Elizabeth Parks, President & CEO, Parks Associates. “The hardware companies need to better support the local dealer market. For small, local companies, competing in a market increasingly dominated by national chains and tech giants presents significant challenges.”
Hardware manufacturers can empower local security companies by providing access to the latest security technologies, training for installation and maintenance, and partnership opportunities for co-branded marketing initiatives. These efforts would allow smaller companies to differentiate themselves through personalized service and local expertise.
“This support not only aids in the survival of small businesses in the face of industry consolidation,” Parks said, “but also ensures that customers continue to have access to diverse security solutions tailored to their specific needs.”
Consumer Insights Dashboards present survey-based consumer research that tracks adoption, purchases, and demand in the residential security market. It visualizes the most important metrics informing the strategic decision making of companies across the residential security market.
At its upcoming CONNECTIONS™ Conference, Parks Associates invites local dealers to attend Dealer Day at CONNECTIONS™ on May 8 in Dallas, Texas, at the Hilton Granite Park Dallas/Plano. Dealers are also invited to the VIP Dealer Reception, hosted by Nice, at the Union Bear Brewing Co.
To schedule an interview with an analyst or to request specific data, please contact Mindi Sue Sternblitz-Rubenstein at mindi.sue@parksassociates.com or 972-490-1113.
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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