According to Parks Associates, as homeowners explore self-installed cameras and app-based security options, traditional dealers are adjusting their sales models to keep pace with changing buying habits.
New research from Parks Associates indicates that security dealers are losing residential business to DIY systems and standalone video devices as consumer buying behavior shifts.
The firm’s “Security Dealer Perspectives: Views from the Front Line” study, based on a nationwide survey of 200 security dealers, found that 74% of dealers have lost sales to DIY systems or standalone devices, up from 51% in 2023.
The research also shows online purchasing is becoming the dominant channel for residential security systems. In 2025, 39% of security system owners acquired their system online, compared to 35% in 2023.
Dealers are adjusting their strategies in response. According to the report, 36% of dealers now sell systems online, up from 24% in 2023, as they seek to provide an easier path to purchase.
“Dealers are responding by offering an easier path to purchase: 36% of dealers sell systems online, up from 24% in 2023,” said Jennifer Kent, SVP and principal analyst at Parks Associates. “Dealers are also embracing new product offerings. Consumers, particularly renters, younger households, and cost-conscious homeowners, want affordable, flexible, and even portable security options.”
The study highlights continued shifts in dealer priorities and market dynamics. Price and reliability remain the top factors when selecting a central monitoring station, while demand is increasing for capabilities such as ASAP-to-PSAP integration, AI-enabled controls and personal emergency response services.
Additional findings show that 70% of dealers report commercial sales are a growing share of their business. The research also notes an approximately $31 per month gap between basic and fully featured service packages.
The report identifies several monitoring providers serving the dealer channel, including ADT, COPS Monitoring, Rapid Response Monitoring, Affiliated Monitoring, Securitas Technology and CMS. It also cites control platform providers such as Johnson Controls, Resideo, Bosch, Qolsys, DMP, Nice and Control4.
Parks Associates will present additional data and analysis at its CONNECTIONS conference, scheduled for May 5–7 in Santa Clara, California.