Consumers Recognize Value of Professional Security Monitoring, Says Parks

U.S. professional residential security monitoring revenue will total $15.74 billion this year, with smart home services accounting for $1.2 billion, blogged Parks Associates Tuesday. Security system adoption reached a third of U.S. broadband households at the end of 2019, said analyst Brad Russell. Consumers now have an average 11.4 connected devices in their homes, creating opportunities to extend professional and “monitor-it-yourself” services, said the analyst. Fallout from the COVID-19 pandemic could create “a more challenging landscape” as customers cut spending over economic concerns, he said. Parks surveys show consumers recognize and value the safety, security, and economic benefits of monitoring services: Companies “can build off the value” with the right marketing and pricing strategies, Russell said. Central monitoring is a high-margin business, and many stations have excess monitoring capacity that could be used for new opportunities including energy usage monitoring, risk mitigation from flood and fire, health and safety of aging relatives, valuables tracking and appliance maintenance, he said.