Security Dealer Perspectives: Views from the Front Line

Dealers are branching out into new areas to bolster revenues and to find applications that require or value professional installation and monitoring.

The 11th annual release of this survey investigates how dealers see the market today and the strategies that show opportunity for growth. It assesses the most important business drivers for dealers’ residential business and the challenges that dealers face today. It quantifies shifting demand for smart home devices during the initial sale and as an aftermarket upgrade, and it highlights dealer perspectives on how artificial intelligence (AI) and the Matter standard will impact their businesses.

More Details on this Research:
Only 24% of Security Dealers are Familiar with Matter
Security Dealer Perspectives study finds 30% of dealers sold DIY systems in 2023

About the 2023 Surveyed Security Dealers

Top Five Business Regions

Average Residential Sales vs. Non-Residential Sales as a Percentage of the Dealers’ Total Sales Units

Key Findings and Implications

Revenue Expectations – % Change Over Prior Year

Commercial Sales Growth, YoY

Interest in Partnership with Vendors for New Service Opportunities

Dealer-Reported Methods of Selling Security System

Familiarity with Matter Initiative

Top Three Business Impacts Dealers Expect from Matter

Impact of AI on Business

2023 Industry Benchmarks and Trends

Annual Revenues, YoY

2022 Annual Revenues

Expected Changes in Revenues: 2023 vs. 2022

Changes in Residential Revenues

Dealer-Reported Average Installations Per Month

Consumer-Reported Home Security System Ownership, YoY

Type of Residential Security System Sold

Company’s Strategic Positioning

Business Drivers and Inhibitors

Business Driver for Security Dealers

Business Inhibitors for Security Dealers

Approaches Used to Overcome Staffing Challenges

Dealer-Reported Methods of Selling Security System

Monitoring, System Pricing, and Interactive Services

Contract Term of Professional Monitoring Services, YoY

Percentage of Residential Security System Sales

Percentage of Firms Selling Specified Service

Dealer Reported ARPU for Professional Monitoring

Average Monthly Fee for Home Security Service, YoY reported by Consumers

Average Monthly Fees for Various Professional Monitoring Services

High Intention of Offering Add-On Services to Professional Monitoring

Likelihood of Offering Add-On Services to Professional Monitoring in the Next 12 Months

Interest in Partnership with Vendors for New Service Opportunities

Inhibitors for New Value-added Service

Subcontract Work to Others

Security Dealers & Smart Home Devices

Security System Installations Including Smart Home Devices

Installation of Smart Home Devices

Security System Integration with Customer Owned Smart Home Devices, YoY

Average Upfront Price by Type of Security Systems

Difficulty of Integrating Smart Home Devices with Security System

Expected Impact of Matter and AI

Familiarity with Matter Initiative

Home Automation Standards, X10 to Matter

Expectations on Matter Standard to Impact Business

Impact of AI on Business

AI as Selling Point for Smart Home Device Solution

Infrastructure & Ecosystem

Method of Providing Professional Monitoring Services

Companies Providing Professional Monitoring System

Top Ranked Considerations in Selecting a Central Monitoring Station

Primary Communication Path for Security Systems

Installation % for Various Control Panel Brands, YoY

High Importance of Control Panel Features

DIY/Self-Installed Security Systems

% of Dealers Selling Self-Install Systems

Method of Installation: Residential Security Sales by DIY System Dealers

Installation Method for All Home Security Systems

Installation Method for Home Security Systems Acquired within the Past 12 Months

Reasons for Selling DIY Security Systems - % Ranking Reason Most Important

Average % Professional Monitoring Service Adding After Self-Install System Sale

Impact of DIY Systems on Residential Security Dealers

Dealers Reporting Losing Sales to DIY Security Systems & Devices

Dealer Business Strategies: Commercial Growth & Succession

Business Operating Length

Business Owner

Commercial Sales Growth, YoY

Reasons to Increase Commercial Sales

Succession Plan of Company

Company Succession Statement

Appendix