One-third of owners of a security dealer firm have considered selling their business, while 42 percent have no succession plan, according to Parks Associates’ 10th annual Security Dealer Perspectives: Views from the Front Line survey. The survey, conducted at the end of 2022, presents and analyzes the results of a nationwide survey of installers/dealers who install security systems, including both owners and those employed by security firms.
The research quantifies the dealers’ view of the security market, with data compared across multiple surveys, and analyzes competitive pressures, industry conditions, and new trends, including the addition of smart home and interactive technologies.
“2022 was a difficult year for home sales after several boom years, and the years to come will be challenging for the housing market,” said Elizabeth Parks, president and CMO, Parks Associates. “Between inflation, increased home prices, rising mortgage rates, and general uncertainty over the health and direction of the economy, consumers are pulling back on spending and buying homes.”
Parks Associates’ research of 10,000 internet households shows that 23 percent of home security system owners acquired their system by moving into a home where it was already present. Moving is among the highest triggers to purchase, alongside heads of household who are starting a family.
“A decline in the housing market is bad news for security providers. In response, many security dealers focus on reviving or increasing their sales to commercial environments, or they are looking to set the business up for sale,” Parks said. “To thrive, dealers must avoid high attrition, increase fees as possible, and seek additional revenue sources.”
Parks Associates will address the growth of the home security industry and integration with energy management solutions at its upcoming Smart Energy Summit, February 13-15 in Austin, Texas. The executive conference addresses the growth of the energy management industry, including the intersection between the smart home and security industry. Sponsors for Smart Energy Summit are CSA - Connectivity Standards Alliance, Rapid Response Monitoring, Calix, Schneider Electric, Austin Energy, Questline Digital, Copper Labs, Resideo, and Google.
For more information, visit parksassociates.com/services/security-dealer-survey