According to new research from Parks Associates, half of all security system sales in the past were do-it-yourself (DIY) solutions.
The firm’s new “Residential Security Tracker” also found that systems with professional installation continue to hold the other half of the marketplace, however; it also noted that if consumer intentions hold that DIY will soon comprise the majority of the market.
"DIY providers offer multiple smart home devices to accompany their systems, including cameras, smart thermostats, and smart lighting options," Jennifer Kent, Vice President, Research, Parks Associates, said in a statement. "Device manufacturers can also add a monitoring line to any product with occupancy sensing, connectivity, and a control platform, so competition within the DIY space, as well as between DIY and professional offerings, will intensify in 2022."
The research firm reported that both DIY and professional install providers are driving product expansion and innovation through the need to differentiate to maintain strong market positions. Cameras and video doorbells are the top two devices security system owners report adding to their systems, followed by smart door locks and additional motion sensors. For all U.S. households, video doorbells are the top smart home device as 15% of U.S. internet households owned a smart doorbell as of Q4 2021, up from 10% in 2019.
The Residential Security Tracker also finds energy is a key adjacency in the security market. Many security companies have partnered with companies offering energy generation, storage, or management capabilities, or they have launched their own initiatives. ADT recently completed the acquisition process of Sunpro Solar and announced the launch of ADT Solar, while Brinks Home has partnered with Sunnova to enable dealers to offer customers Sunnova's portfolio of solar, battery, and energy services.
In fact, 8% of U.S. internet households report owning power-generating solar panels (solar PV), double the rate five years ago. Security system owning households strongly over-index on solar ownership, with 17% of all security system owning households reporting that they also own solar PV panels.
"Expect security providers, with new energy capabilities in their portfolios, to expand their sales targets to MDUs and commercial entities that are interested in adding energy management and savings, including builders, property managers, and small businesses," Kent added.
