Home Security: A Redefined Market
COVID-19 has redefined the market for security and related smart home devices, with both positive and negative factors emerging in this new environment. From the very beginning of the pandemic, many people, unwilling to risk exposure to COVID-19, have avoided circumstances where an installation or repair technician would enter their home. This cramps growth for traditional security systems but heightens the willingness to acquire self-install security systems.
Countering this downward pressure for traditional security systems are strong new-start home sales with higherthan-average adoption of security. The security system and adjacencies such as IP cameras can go straight on the mortgage, with the option to continue monitoring services. In addition, sales of second homes in vacation areas have increased substantially as households, particularly those in large cities, seek to escape to tranquility. These market conditions have driven new opportunities and alliances among builders and security players; for example, ADT has entered a partnership with D.R. Horton, the nation’s largest homebuilder by volume.
Parks Associates’ new complimentary whitepaper, Home Security: A Redefined Market reports self-installation of newly acquired security systems reached 55% in Q2 2020, up from 40% in 2018, an increase of nearly 40%. Overall, slow and steady growth continues for adoption of home security systems and professional monitoring. In recent years, adoption of security systems has experienced growth even in the face of attrition continuing at an average rate over 12%.
As consumers continue to embrace technology, and while their lives are forever changed as a result of the pandemic, they are turning to connected products and services to accommodate these changes. Parks Associates sees continued slow and steady growth for the home security and smart home industries, with continued technology innovations, innovative partnerships, and integrations between products and services.
Additional Data:
- Approximately two-thirds of security system owners, which equates to 20% of US broadband households or about 20 million households, have an interactive security system.
- 40% of security system owners are planning to upgrade their system, and more than 50% report these plans relate to COVID-19.
- One-third of security system owners and intenders report concerns about COVID-19 caused them to avoid professional installers due to the discomfort of having a stranger in the home.
Downloadthe Home Security: A Refined Market whitepaper to gain insight on the rise of interactive services and DIY installation are two key trends defining the home security market, accelerated by the COVID-19 pandemic, lower prices, and new smart home solutions.