Consumer research tells us that security dealers need to consider alternative strategies that can compete with smart home products offering self-monitoring.
More than one-third of U.S. homeowners and 14 percent of renters have a functioning security system, research by Dallas-based Parks Associates shows. Owning a home is a leading indicator for having a security system — homeowners are nearly 2.5 times more likely than renters to have a working security system — but many of the new security device players hope to crack the untapped rental market by offering lower-cost security or peace-of-mind solutions, such as self-installable portable security systems. These solutions are not solely for the rental market though; among U.S. security owners who know who installed their systems, more than 25 percent have a self-installed system.
As more self-installable security products and systems enter the market, security dealers must adapt to the changing competitive landscape. Emerging smart devices, ranging from networked security cameras (IP cameras) to all-in-one devices, are positioning themselves as substitutes for traditional security systems, with lower or no monitoring fees.