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Residential Security

Q4 2024

Quantified Consumer

Home Security & Monitoring: Subscriber Churn and Retention

The security market has evolved to meet consumer demand for choice in systems, devices, installation methods, purchase methods, and monitoring services.  Professional monitoring, video storage, and other recurring sources of revenue are critical to the sustainability of a security system or device business. Security providers must attract and retain subscribers, while maximizing ARPU through the delivery of new feature and services that provide real value. 

This Q4 2024 study assesses security subscription models, features, and pricing as well as strategies that can aid in subscriber retention. 
 

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Executive Summary

Security Service Market Segments: Monitoring, Systems, and Devices

Residential Security Solution Market

Security Market Customer Profiles

Security System Market Segments

Paid Security System Services among Pro-Installed Security System HHs

Paid Security System Services among Self-Installed Security System HHs

Security System Service Provider NPS

High Intention of Subscribing to Professional Monitoring for Security System in Next 6 Months

Security System-attached Devices

Opportunities to Expand Security Offerings

Competitors Vie for Leadership Across Key Industry Metrics

Security Solutions: Adoption & Market Segments

Security Solution Adoption

Paid Security Service Adoption

Home Security System Ownership

Home Security Systems Acquired in Past Year

Interactive Systems Adoption among all Security System Owners

Interactive Systems Adoption among Recent Security System Buyers

Smart Safety & Security Device Ownership

Home Security System & Service Adoption

Home Security System Installation

Installation Method

Security System Purchase Journey

Security System Purchase and Intention to Buy

Smart Camera & Smart Video Doorbell Purchase and Intention to Buy

Alternative Security Solutions Considered, Among Recent System Buyers

Security System Acquired Not Currently In Use

Self-Installed System Not Currently In Use

Security System Purchase Channel

Security System Purchase Method

Purchase Method for Security Systems Owners

Average Upfront Fees for Home Security Systems, YoY

Payment Method Used to Acquire a Home Security System among All System Owners Who Purchased Their Systems

Payment Method Used to Acquire a Home Security System by Install Method

Devices Acquired as Part of Security System

Devices Acquired as Part of System, by Installation Method

Devices Added to Security System After Initial Installation among all Security System Owners

Devices Added to Security System After Initial Installation by Installation Method

Devices Added to Existing Security System

Triggers for Security System Acquisition

Triggers of Security System Acquisition by DIY vs. Pro Installation

Reason for Choosing Self-Installed Security System

Difficulty with DIY System Install

Competitive Landscape

Security System Brand Owned among all System Owners

Security System Brand Owned among Owners of Systems Acquired in the Past Year

Security System Brand Owned by DIY Installed vs Pro Installed

Video Doorbell Brand Purchased

Smart Camera Brand Purchased

Paid Home Security Service by Security System Brand

Top Professional Monitoring Service Providers for Security Systems

Security Service Provider Net Promoter Score (NPS)

NPS of Top Security System Service Providers, Trending

Security Service Segments: Pro, Self, and Device-based Monitoring

Security Service Market Segments: Monitoring, Systems, and Devices

Households with Paid Service Attached to Home Security System, YoY

Adoption of Security System Services

Security Monitoring Service by Installation Method

Paid Security Services among Pro-Installed Security System HHs

Paid Security Services among Self-Installed Security System HHs

Security System Service Provider NPS by Monitoring & Installation Segments

NPS of Video Doorbell and Smart Camera among All Smart Video Device Owning Households

Paid Services for Video Doorbells

Paid Services for Smart Cameras

Smart Camera: Area of Installation

Paid Service Attach Rate by Camera Location – Q2 2024

Security System Ownership Among Smart Smoke/CO Detector Owners

Paid Detector Service with Security System Subscription

Stand-Alone Detector Plan

Smart Smoke/CO Detector Subscription Plan Monthly Cost

Features of Smoke/CO Detector Service

System Services Deep Dive: ARPU, Churn, Retention

Home Security System & Service Adoption

Average Monthly Service Fees for Home Security Systems

Avg Monthly Fee by Top Brands, Q2 2024

Length of Continuous Subscription to Professional Monitoring Service

Changes Made to Security System Service in Past 12 Months

% of Pro Monitoring Systems HHs that Switched Pro Monitoring Providers

% of Pro Monitoring Systems HHs that Switched from Self-Monitoring to Pro

Reasons for Security Systems Owners Cancelling Professional Monitoring Security Service

Previous Professional Monitoring Service Providers for Security System, Among Cancellers/Switchers

Reason for Switching Between Professional Monitoring Providers of Security System

High Likelihood of Making Changes to Pro-Monitored Security System

Pro-Monitored System Service Contract Length Remaining, Among Intended Cancellers

Impact of Contract Terms on Cancellation Plans

Impact of Retention Incentive on Pro-Monitoring System Service Cancellation Plans

Impact of Service Pricing Discount as Retention Tool for Pro-Monitored System Services

System Services Deep Dive: Self Monitoring

Reason Security System Households Choose Self over Pro Monitoring Service

Attitudes toward Self-Monitored Security System

Attitudes towards Neighborhood, First Responders, False Alarms by Type of Service

Promotion to Boost Professional Monitoring Service Subscription

Reason for Switching from Self to Pro Monitoring of a Security System

High Intention of Subscribing to Professional Monitoring for Security System

Next Wave of Services

Top Three Desired Features Beyond Intrusion Protection

Adoption of Personal, Vehicle, and Wearable Safety Solutions

% Using at Least One Tested Safety Solution

Householders Using Personal, Vehicle, and Wearables Safety Solutions

Interest in Security System Add-on Service

Appeal of Event Verification Methods: Video, AI, Private Guard among All System Owners

Appeal of Event Verification Methods: Video, AI, Private Guard by Security Service Use

Security Buyer Profiles

Service Subscriber Profile: Demographics

Service Subscriber Profile: Housing Characteristics

Service Subscriber Profile: Employment, Race/Ethnicity

Demographics by System Installation

Housing Factors by System Installation

Employment, Race/Ethnicity by System Installation

Appendix

Published By Parks Associates

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Disclaimer: Park Associates has bade every reasonable effort to ensure that all information in this document is correct.  We assume no reponsibility for any inadvertent errors.

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