Franchise

Report Identifies Growth Opportunities in Home Security Market

By October 22, 2013 June 24th, 2019 No Comments

It’s always encouraging to hear about opportunities for growth. Despite the hit that the housing market took back in 2008-2009, the recovery is in full swing. The news in our industry has been nothing short of impressive.

Households in the United States with professionally monitored security services will expand to 30 percent by 2020, according to The Parks Associates, a market research and consulting firm focused on residential product and service segments. There is significant potential for entrepreneurs seeking opportunity in this marketplace.

“The recession dampened the market for security, but there is demand for new systems,” says John Barrett, director, consumer analytics, Parks Associates.

An estimated 18 percent of U.S. household used professionally monitored security systems in 2010, generating roughly $10 billion in service fees. Consumer demand for remote monitoring and the increasing presence of broadband service providers will drive growth in the security market, according to the research company.

Broadband Service Expands Reach

Broadband, commonly referred to as “high speed internet access” is the term used to describe the wide bandwidth that enables multiple signals to communicate at any given time. As broadband services become more widespread, broadband providers will be well positioned to tap into the security market due to their existing infrastructure and their ability to tap into existing customer databases.

70 percent of U.S. household (88 million households) have high speed internet access.  About 10 percent of them considered purchasing a security system last year, but ultimately didn’t get one, but half are still open to purchasing a system and another 2 percent actually did purchase a system through their broadband provider.

Opportunity Abounds For Integrators

While one-third of consumers in broadband households find remote control of lights, appliances, and thermostats via a web-enabled solution, appealing, they are even more enamored with the idea of instant notification of potentially dangerous or life-threatening hazards at home. Nearly 50% of U.S. consumers find email / text notifications of smoke, fire, water or gas leaks very appealing. That’s good news for smart home integrators and security professionals alike.

Homeowner Preferences 

Results indicate that two-thirds of households without a security system are interested in smart home systems that provide a mixture of safety, security and home control features. This level of interest points to a rejuvinated security industry, especially as smart home controls capture the interest of homeowners and the technolgy itself becomes more mainstream and easier to operate.

Communicating the value of a smart home system remains a constant challenge for many security professionals. Understanding the technology yet being able to communicate value to the consumer is a pervasive problem among industry reps.

“The challenge is getting the right mix of features and pricing as well as communicating to consumers the value of a smart home system.”

Additionally, overcoming the monthly service fees, a key sticking point for consumers considering purchasing a solution, is challenging as well.

Despite obvious marketing and sales challenges, the time is ripe for this market. Read full article here.

 

SHIELD Security Systems, the only full service security franchise in the United States, provides turn-key entry into this very prosperous and lucrative industry. Management, sales and marketing support are a few of the key components of the SHIELD franchise offering. Ownership opportunities are available for those interested in an exciting, rewarding, low investment business that can generate substantial, passive income through monitoring renewals and vertical marketing opportunities.

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