About 42% new security system installations include a smart home device
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About 42% new security system installations include a smart home device

New research from Parks Associates (www.parksassociates.com) reveals that 42% of new security installations include a smart home device such as a door lock, light, or thermostat.

The data also shows that interactive services, or the ability to remotely monitor and control the security panel and sensors, are now included in more than 70% of new security system installs. At the end of 2016, nearly 60% of U.S. broadband households with professional monitoring reported having interactive services.

"The residential security market, due in part to its position as the leading channel for smart home solutions, has attracted numerous new entrants, beginning with Comcast in 2010, followed by Time Warner Cable and AT&T," said Dina Abdelrazik, research analyst, Parks Associates. "The importance of interactive services is apparent, as dealers recognize and acknowledge the positive impact on attrition rates, the ability to drive higher RMR, and the ability to attract new customers to the security market.”

Parks Associates estimates the presence of a working security system at 23-25% of U.S. broadband households and the presence of professionally monitored security at 21-22%. According to the firm's research, roughly one-third of homes with a professionally monitored security system in Q4 2016 had home control or smart home features integrated into the system.

"Vendors who have embraced the transition to interactive services and home controls are experiencing success," Abdelrazik said. "Smaller, local dealers are not embracing interactive services and home controls due mainly to support concerns, and they are losing share as a result. Among smaller, local dealers, only 53% of new installs have interactive services, and 18% of new security system installations include a home control device.”

Additional research shows:
° 66% of security intenders who prefer a local company report that a referral is important to their choice.

° Between 50%-60% of smart safety and security devices are acquired as part of a householder's security system.

° Professional monitoring yielded nearly $11.7 billion in annual revenue in 2016.

 

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