Adapting to Change: Evolution of Security

The past five years have included a realignment of the residential security market with consumers shifting their buying, installation, and monitoring choices. New households and competitors have entered the market. Security providers are adapting to the pressures of a changing customer base, increased competition, and a challenging economic environment.

Single smart home devices such as video doorbells and cameras continue their diffusion. For some, these single devices are deemed adequate for home security. While DIY security system adoption increased dramatically during COVID, professional security system installation has rebounded to the point that these different installation methods run neck and neck.

As of Q2 2023, 42% of US internet households report ownership of any security solution, including systems and devices; 28% subscribe to a security service.

Top triggers to security system acquisition include moving to a different and owned home, and purchase of a home that includes a working security system. The choice for consumers has never been greater. With big tech’s entry, there’s a rising expectation for devices that not only communicate with each other but also with emergency response services. This integration is crucial, as it ensures that in the event of an incident, the system can take proactive measures to contact emergency services, potentially saving lives and property.

The sophistication of these systems means that they can often discern between a false alarm and a real emergency, reducing unnecessary stress on local services and providing homeowners with “real” alerts.

Core functions of interactive alerts and 24/7 monitoring are the most desired features for security system owners and intenders. Parks Associates tested interest in personal security solutions that provide emergency assistance out of the home. Security providers seek new areas of growth and can extend their peace of mind offerings beyond the system and the home to personal security on the go.

ADT offers personal security jewelry and both ADT and Noonlight offer mobile applications with free and premium tiers. Arlo’s Safe button and app includes GPS tracking and family check-ins. Nearly one-third of system owners and intenders are interested in out-of-home emergency solutions. Emergency response compatibility is an essential aspect of security systems.

One of owners’ top frustrations with their security systems is failure to accurately identify the presence of unauthorized individuals on a property, leading to false alarms.

62% of security system owners report experiencing a false alarm in the past 12 months.

53% of security system owners who experienced a false alarm cite a non-person as the cause.

The prevalence of false alarms is also a top reason households give when cancelling monitoring services. The detrimental impact of false alarms on human and financial resources has caused municipalities to impose false alarm fees, penalties, and de-prioritization of calls. Security dealers understand the seriousness of the issue. In fact, video verification to prevent false alarms is the top add-on service security dealers are likely to add to offerings, according to Parks Associates’ Security Dealer Survey.

The value of security solutions is threatened when systems detect and alert users to issues that are not actual security events or emergencies. About half of system owners say their security system triggers too many false alarms, and nearly one-in-ten report they experienced more than five false alarms in a 12-month period.

Most false alarms that are due to user error are generated from people living in the home:

• Incorrect password
• False alarm caused by children
• False alarm caused by adult living in home

The evolution in home security technology empowers consumers with choice, control, and peace of mind, knowing that their homes and loved ones are protected by cutting-edge systems. The power of choice is forcing security providers to change and re-evaluate the products, the offerings and bundles, and how to sell the value of professionally monitored security systems.

Parks Associates is a market research and consulting firm covering all aspects of demand for technology. For more information, visit www.parksassociates.com