Providing market intelligence for more than 35 years

Residential Security

Q3 2019

Industry Report

Residential Security Dealers: Trends and Disruption

A number of market developments and trends are impacting the security industry, leading to changes in business models and product offerings to better serve or appeal to the approximately 70% of households without security systems. Dynamics include adopting new technology, growth in self-installed home security systems, the addition of interactivity, and changes in consumer behavior. Channel expansion is also a factor, as security systems are being sold bundled with broadband and video solutions, as well as sold in big box retail, through energy providers, and direct to consumers. This report evaluates security dealers and provides a comprehensive view of the security dealer channel through industry insights and findings from a Parks Associates survey of security dealers.


Download Table of Contents (PDF)

1.0            Report Summary

1.1            Purpose of Report

1.2            Key Questions Addressed by this Research

1.3            Research Approach/Sources

2.0            The Security Dealer Landscape

3.0            Security Offerings

3.1            Types of Residential Security Systems

3.2            Pricing of Security Systems, Upfront Fees, and RMR

3.3            Approach to DIY/Self-Installed Security

4.0            Business Models, Operations, and Infrastructure

4.1            Contract Terms for Professional Monitoring

4.2            Lead Generation for New System Sales

4.3            Important Factors in Central Monitoring Station Selection

4.4            Hardware and Panel Vendor Considerations

4.5            Interactive Service Provider Considerations

5.0            Security Solution Channel Expansion

5.1            Retail Channel

5.2            Multi-Service Operator (MSO) Channel

5.3            Additional Channel Opportunities

6.0            Future Outlook: Challenges and Opportunities

6.1            Business Challenges

6.2            Market Opportunities

7.0            Appendix

7.1            Glossary

7.2            Index

Security Dealers Profile
Interactive Security Systems as a Percentage of Sales
Average Upfront Price by Type of Security System
Sales of DIY Security Systems in Year (2017-2018)
Contract Term of Professional Monitoring Services (2014-2018)
Leading Methods of Acquiring Sales Leads (2017-2018)
Important Factors in Central Monitoring Station Selection (2017-2018)
Installation Rates for Security System Panel Types (2017-2018)
Most Commonly Used Interactive Service Providers (2014-2018)
Security System Purchase Channel
Purchase Location of Smart Home Devices
US Residential Security Forecast – MSOs (2018-2023)
Consumer Willingness to Pay to Connect Smart Devices to a Monitoring Station
Top Challenges to Security Dealers in the Year (2017-2018)
Expand the Residential Security Market
Interest in Security System Features
Smart Home Safety & Security Device Ownership by Segments

© August 2019 Parks Associates
All rights reserved.  No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America. 

Parks Associates has made every reasonable effort to ensure that all information in this report is correct.  We assume no responsibility for any inadvertent errors.


The Parks Points Newsletter Features All Aspects Of Our Research, Including Smart Home, Iot Devices, Entertainment And Digital Media, Security, Energy, Health, And Consumer Data.