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Research: 85% of Security Dealers Provide Home Network Services

Parks Associates research states that security sealers are providing services beyond monitoring, such as connected health.

New security dealer research from Parks Associates shows 85 percent of security dealers report they provide extra services beyond professional monitoring, including video verification, PERS, cybersecurity, and independent living services. The international research firm’s annual study Home Security Dealers: View from the Front Line, now in its eighth year, provides trending data and current insights based on a survey of U.S. dealers studying their view of the security market, competitive pressures, industry conditions, and new trends, including the addition of smart home and interactive technologies. The study reports only 15 percent of dealers provide no extra services beyond professional monitoring.

“Going forward, greater emphasis will be placed on PERS and independent living services,” says Brad Russell, research director, Parks Associates. “The devastating impact of Covid-19 in senior living facilities ensures that more seniors will want to stay in their homes or apartments and their families want to help that happen.”

In Parks Associates’ Q2 consumer survey of 10,000 U.S. broadband households, 24 percent of consumers report having completed some home improvement project during the pandemic, many of them choosing to do-it-themselves.

“This DIY trend is driving revenue growth for home improvement stores like Ace, Lowe’s, and Home Depot,” Russell says. “It also drives an increasing share of consumers choosing DIY security systems. This year’s consumer surveys show a big jump in the percentage of home security system purchases that are DIY with professional monitoring. Our dealer survey finds that this ecosystem is responding to this market shift, with 43 percent of traditional security dealers now offering DIY systems in addition to pro-installed.”

Additional security dealer research findings:

  • 25percent of dealers report providing fee deferments or relief to customers during Covid-19.
  • Professionally installed systems have declined by nearly 25 percent since 2017.
  • The sales of DIY systems have increased by nearly 60 percent since 2017.

Parks Associates will present this research at the upcoming CONNECTIONS Summit: Smart Home Growth Strategies, a CES Conference Partner taking place January 14. CONNECTIONS Summit at CES is an annual research and industry event hosted by international research firm Parks Associates at CES. In 2021, the executive event features virtual panel discussions on the smart home, Internet of Things (IoT), connected health, and home security and automation, with trends and implications for connected consumers and opportunities for companies to build new revenues and develop innovative business models.

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