Parks Associates: Nearly 40% of Security Dealers Offering Interactive Services Report that 50% or More of Their Sales Include at Least One Smart Home Device

DALLAS, March 6, 2018 /PRNewswire/ -- Parks Associates' fourth annual Security Dealer Survey, fielded at the end of 2017, finds that smart products and interactive capabilities provide dealers additional value propositions for their offerings in an increasingly competitive space. More than 90% of U.S. dealers offer some form of interactive service, and 75% of security sales overall include at least one smart home device.  

The 2017 Security Dealer Survey explores the emergence of DIY/self-installed security systems and smart home devices as security system adjacencies. This year's results show an industry in a growth cycle, with strong sales in 2017 and the entry of more small, local dealers. Dealers will continue to have to fight for their sales; industry consolidation such as the merger of Protection One and ADT Security and Amazon's acquisition of video doorbell manufacturer Ring packs a wallop.

"Nearly 40% of U.S. security dealers selling interactive services report that 50% or more of their sales include a smart home device," said Tricia Parks, CEO and founder, Parks Associates. "The most popular devices are networked video cameras, but new items such as video doorbells and smart door locks are increasing in popularity. The safety and security aspect of the system remains the strongest selling point, but inclusion of smart home products adds more connected lifestyle value to a security system."

The Security Dealer Survey also shows that, of the security dealers not yet offering interactive services, nearly 50% plan to add these offerings in the next 12 months: competition will continue to increase.

 "Nearly one-third of dealers cite an inability to find qualified personnel as a top challenge, a sign of a market with strong competition for both installers and customers," Parks said. "2018 will be busy for dealers. They face competition from standalone smart home sales and self-installed security sales. These firms must ensure that they continue to differentiate and avoid competition purely on price."

Additional insights include:

• The average revenue for security dealers is nearly $2 million.
• 60% of dealers have revenues less than $1 million, indicating an increasing number of small dealers in the industry.
• On average, residential security system installations account for 47% of security dealers' unit sales.
• 61% of dealers agree that self-install security systems are cutting into the demand for professionally installed security systems.
• The percentage of security dealers providing professional monitoring services remains steady at 65% to 70%.

For more information about Parks Associates' research, contact [email protected]. To schedule an interview with an analyst or to request specific data, contact Julia Homier at [email protected], 972-996-0214.

About Parks Associates

Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small start-ups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.

The company's expertise includes digital media and platforms, entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, support services, consumer apps, advanced advertising, consumer electronics, energy management, and home control systems and security.

Each year, Parks Associates hosts industry webcasts, the CONNECTIONS™ Conference Series, Connected Health Summit: Engaging Consumers, and Smart Energy Summit: Engaging the Consumer. http://www.parksassociates.com

Julia Homier
Parks Associates
972.996.0214
[email protected]

SOURCE Parks Associates

Related Links

http://www.parksassociates.com