Security System Purchases are Down, Matching Pandemic Lows

According to Parks Associates latest research security system adoption has stabilized at roughly 31-32% of US internet households owning a security system after a spike in purchasing safety, security, and technology products during the pandemic.? Economic headwinds continue.

Though inflation has come down, overall pricing of goods and services are still higher than several years ago, restraining consumer purchasing power.? Mortgage interest rates have also come down slightly, but housing prices remain high and inventory is limited, restraining home sales. Residential security system providers must prove their value to attract customers to buy into the fuller capabilities of a system and to retain customers eyeing cheaper options.

Purchase rates are down

Less than 10% of security system owners reported purchasing their system in the past year, matching a low point of the beginning of the pandemic. When considering the margin of error, this rate is at near parity with recent quarters, but the slow housing market and depressed consumer spending are having an impact on security system sales.

Interactive Systems are Standard

Nearly all security systems sold today are interactive systems, with at least basic remote control/app functionality.? Smart home devices and home automation applications are the top trigger for purchasing a security system. Providers should limit traditional offerings and focus on interactive systems.? Interactive systems are the foundation for much of the value of today’s security proposition, including remote arm/disarm and a foundation for smart home devices, enabling automation, real-time alerts, and enhanced control.

This is an excerpt from Parks Associates Residential Security Dashboard.

Consumer Insights Dashboards present survey-based consumer research that tracks the movement of foundational market metrics, such as product or service adoption, household spending intentions, installation trends, and key tracking metrics on leading industry players.

Parks Associates surveyed 8,000 U.S internet households this quarter. The survey results represent all US internet households by demographics, which, as of year-end 2023, are 92% of all US households. Research is delivered twice throughout the year and includes details of adoption and growth of home security systems.

• ?Methodology and Definitions ?
• Executive Summary ?
• System Adoption & Purchase Channels ?
• Professional Monitoring Services
• Home Security Installation?
• Appendix ?

For more information about this or other Parks Associates research, visit www.parksassociates.com