2021 and 2022 have been healthy years for the home security industry, and new competition is changing the landscape. Self-installed systems now represent about half of all security systems owned or 16% of all US broadband households. Taken together, these metrics underline the growth of the self-install, professionally monitored market for major players.

Understanding the complexity of the market is important as the lines continue to blur with offerings from traditional players and innovative newcomers, changing the market landscape.

Smart security devices are often self-installable devices that have a variety of relationships with professionally installed systems. Recent introductions of professional monitoring for self-installed devices provide consumers with new options. These self-installable devices include the following:

• Add-ons to professionally installed and monitored systems
• Add-ons to professionally installed but self-monitored systems
• Self-installed systems or devices that are professionally monitored
• Self-installed systems that are self-monitored
• Self-installed standalone devices that are self-monitored
• Self-installed standalone devices that optionally work with other devices or systems

Four key factors are coalescing to cause steady growth for security providers:

1. DIY Providers continue to improve their systems, their options, and the ease of installation.
2. A year of continuous worry about COVID-19 and its variables continues to keep people at home a lot and to avoid having strangers in their homes.
3. Crime has increased in several big cities. It receives media attention and causes anxiety among consumers. So does continued political polarization.
4. Having more time at home has caused a good percentage of consumers to improve their homes; that includes adding a security system.

Despite strong competition and DIY systems that advertise lower prices; security systems' upfront fees continue to increase.

• Monitoring fees also continue to increase, on average, despite lower fees advertised for DIY systems.
• Intentions for 2022 remain solid; those include replacement and greenfield systems. Intentions for security are always much higher than actual sales.
• In Q4 2021, Parks Associates’ surveys detected a slight downturn in reported professional monitoring subscriptions after three banner quarters. This may indicate some slowing down of demand as the pandemic comes out of a crisis stage.

The adoption of DIY systems constitutes nearly 50% of all sales in the past year.

• It appears that this trend may have peaked at just about 50% of all recent systems.
• Professional monitoring options have helped DIY systems gain increased acceptance by consumers.
• Portability helps renters interested in security consider DIY adoption.
• DIY system providers offer multiple smart home devices to accompany their systems including cameras, smart thermostats, and smart lighting options. Coming as they do from one manufacturer, compatibility is certain, and single points of control are also present.
• Look for DIY competition not only from DIY security system providers but also device manufacturers who can add a monitoring line to any product with occupancy sensing, connectivity, and a control platform.

This is an excerpt from Parks Associates Residential Security Tracker, a quarterly study that provides the most relevant business intelligence and market data regarding the home security landscape. Thank you for reading our research. If you are interested in our services or have a product in this category, please contact me or any member of Parks Associates team.

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