The Smart Money: Residential Security Continues Market Shift

As DIY powers increased adoption and competition, traditional security providers should consider integrating more lifestyle services
Dec. 22, 2025
5 min read

Key Highlights

  • Home security shifts from hardware to adaptive service ecosystems: Value now lives in AI analytics, lifestyle integrations, and cross-category bundles (thermostats, leak detectors, TVs)—providers relying on hardware margins lose to competitors delivering continuous, adaptive experiences as consumers view security as a flexible service, not fixed installation.
  • Tech giants reshape competitive landscape: ADT leads overall (27% of new systems) but Ring dominates DIY (28% of self-installed, 47% of video doorbells)—Amazon, Google, Apple, and even Roku are leveraging cross-platform ecosystems and adjacent product categories to capture territory traditional players once owned.
  • Value expansion is the new retention strategy: Average monthly RMR hit $54 (up 12% since 2017) but 69% of self-monitors believe they're "just as safe"—providers must articulate professional monitoring value while offering hybrid tiers, and expand into dashcams (55% interest), fire/gas (61% interest), and water monitoring (57% interest) to reduce churn beyond alarms.

 

This article originally appeared in the December 2025 issue of Security Business magazine. Don’t forget to mention Security Business magazine on LinkedIn or our other social handles if you share it.

As the home security market matures and expands to include many new smart home devices, value is shifting from hardware to service innovation, ecosystem integration, and interoperability. AI, video analytics, and connected lifestyle features are shifting the security experience, while new competition is expanding the applications.

The next generation of home security will be defined by convergence between devices and systems, between home and mobility, and between industries. Parks Associates’ data shows that consumers no longer view security as a fixed installation, but as an adaptive service. AI-enhanced cameras, integrated subscriptions, and flexible monitoring options have changed the consumer relationship between “safety” of the home and the providers of these products and services.

The challenge for security businesses is to stay indispensable in a world of choice and navigate the many decision-making points on the best ways to grow. Companies will need to evaluate their base and consider ways to upsell and grow the value of existing accounts. One way is via add-on lifestyle services.

Security Powering Adoption Rates

Home security adoption is at an all-time high. From 2022 to 2025, device-only adoption has doubled from 7% to 14%, which translates to about 17 million households that own a networked camera, video doorbell, or floodlight camera. Paid service adoption across security systems and security devices also increased from 30% in 2022 to 35% in 2025.

For industry players, this evolution expands monetization potential but also intensifies competition with disruptive technologies and players entering the market. Providers must design scalable service models that provide reliable alerts, smarter analytics, and integration across more areas of the home, like the television, thermostat, and water leak detectors, for example. Those relying solely on hardware margins will lose ground to players delivering continuous, adaptive service experiences that are integrated and add value for the consumer.

Home security adoption is at an all-time high. From 2022 to 2025, device-only adoption has doubled from 7% to 14%, which translates to about 17 million households that own a networked camera, video doorbell, or floodlight camera. Paid service adoption across security systems and security devices also increased from 30% in 2022 to 35% in 2025.

A defining feature of today’s market is consumer confidence in self-installation. In 2025, more than half of recent security system buyers (51%) self-installed their systems. DIY adoption surged during the pandemic and remains strong as users seek affordability and convenience. Meanwhile, professional installation remains relevant among homeowners seeking comprehensive coverage and service reliability.

Expanded Competition

The competitive landscape is undergoing a major realignment. Traditional leaders like ADT and Brinks maintain strong positions, but DIY brands and tech ecosystems are capturing new territory. In 2025, ADT led with 27% of all new system acquisitions, while Ring Alarm led the DIY segment, with 28% of those acquiring a self-installed security system choosing Ring, which dominates the video categories with 47% of video doorbells and 24% of smart camera purchases.

Tech giants like Amazon, Google, and Apple bring brand recognition, cross-platform reach, and subscription ecosystems that make them formidable competitors. Roku’s recent rebound in the security space, following its pivot to in-house camera development, shows how non-traditional entrants are using their strengths in adjacent connected product categories as launchpads for home security expansion.

For traditional security companies, competition is no longer limited to monitoring services; it spans digital ecosystems across the connected home environments. The future is about reliability and innovation: embedding AI-powered verification, enhancing mobile engagement, and introducing cross-category bundles. Partnerships with utilities, ISPs, and tech platforms can help traditional brands remain central in a market where convenience and integration are key loyalty drivers.

Shifting Customer Expectations

Security providers are increasingly judged not by installation quality, but by ongoing value delivery. The average monthly fee for a home security service now stands at $54, up 12% since 2017. This increase in monthly RMR is driven by expanded device integration and richer feature sets. Consumers are paying more, but expectations have risen accordingly.

Professional monitoring of security systems still commands most subscriptions (57% of paid services), yet self-monitoring of systems continues to grow, representing nearly one-fifth of the paid base. Among households without systems, 66% of video doorbell owners and 63% of smart camera owners pay for at least one service, most commonly video storage and emergency alerts to users’ phones. This trend highlights a critical dynamic: consumers equate ongoing payment with functionality, not necessarily monitoring 24/7.

Providers must clearly articulate the incremental value of professional monitoring. With 69% of self-monitoring households believing their systems are “just as safe” as pro-monitored ones, differentiation comes from verified response, reliability, and convenience. Hybrid options like on-demand monitoring or low-cost verification tiers can help providers reach both budget-minded and service-oriented consumers. These models maintain recurring revenue while giving households more flexibility in how they engage with security services

Expanding Beyond the Home

The definition of security has been beyond the front door for years. Consumers are extending their sense of protection across different aspects of life, blending home, mobility, and health into a unified “safety and security” ecosystem.

Now, more than half of security households use at least one personal or wearable safety solution, led by smartwatches and emergency-enabled bands (21%).

Vehicle monitoring and dashcams are gaining traction, with 13% of U.S. internet households owning a dashcam today, and 55% of security system owners interested in adding a dashcam service to their security package.

Fire and water monitoring services are also of interest, with 61% of security system owners interested in adding fire/gas monitoring to their security system, and another 57% interested in adding water monitoring.

For legacy providers, expanding value beyond the home is essential. Integrating fire, vehicle, and personal safety services can sustain engagement and reduce churn. Partnerships with mobile carriers, automakers, and utilities could extend brand presence into everyday protection experiences. Ultimately, traditional providers need to expand to new areas beyond just alerts and alarms.

About the Author

Daniel Holcomb

Daniel Holcomb

Daniel Holcomb is Senior Analyst for Parks Associates, which covers the security and smart home market extensively within its research practice. The company will host the 20th annual CONNECTIONS SUMMIT at CES Jan. 7, 2026, and the 30th annual CONNECTIONS, The Premier Connected Home Conference, on May 5-7 in Santa Clara, Calif. Visit www.parksassociates.com to learn more.   

 

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