The Impact of COVID-19 on the Residential Security Industry
New ESA research explores trends in competition, attach rates and satisfaction among homeowners
For many, measures such as working and schooling from home have become the new way of life. And while some have struggled to adapt to this new norm, those in the residential security industry have seen – and met – the significant demand the pandemic has left in its wake.
A new research report identifies several factors that have a major impact on the industry: driving both significant growth and expanded automation opportunities.
For most of the past decade, the adoption rate for professionally monitored security systems stood between 18-21%. And new research from ESA, the Electronic Security Association, indicates significant growth in the past three years, with 31% of households now having professionally monitored security systems.
Where there is growth, there is opportunity – and the ESA study1, Residential Security Market Trends, sheds light on important factors affecting the business. These include the competitive climate, the impact of the smart home and the influence that COVID-19 is having on consumer behavior and preferences. For residential security professionals, these trends are important to consider when planning your own market strategies.
Here are some other notable findings in the study:
- Having often found themselves homebound because of the pandemic, homeowners continue to make security a priority for their families. In fact, 35% of broadband households are extremely concerned about their household’s safety and security. The report found that while new installs, “have been challenged by the current climate, attrition rates have remained steady through Q2 2020.”
- Homeowners are very satisfied with how their home security provider has dealt with the 2020 pandemic. The study showed a satisfaction rate that exceeded other service providers/businesses.
- Smart home device attach rates are strong. More than a quarter of all broadband households are using smart devices, while more than 60% of those homes with security systems own a smart home device – a dramatic difference. As the study suggests, this is, “putting security dealers in a unique position to benefit from demand for connected living.”
New Installation Strategies
The research also points to the fact that, “dealers will need to evaluate their installation strategies,” partially because of COVID-19, and perhaps consider the emerging “do-it-with-me” movement. By guiding the homeowner through the process once, a professional installer can continue to work with their customers to install devices in the future. This can enable the professional security system to become the foundation for the smart home – one that the homeowner and professional can easily build on as the family's needs change and budget allows.
Resideo's security systems, including the new ProSeries Platform, offer professional, monitored security, but also can serve as a hub for a powerful and integrated smart home solution. With 76% of security system purchasers wanting interactive services, the Total Connect remote services app is a great way to give them the awareness and control they need, from anywhere.
The findings of the research suggest there remains a large potential market and opportunity for trusted, professional installations. When homeowners count on the expertise of professionals to install a security and life safety system, and also lay the groundwork for a smart home, it’s a solution that promises to become an essential part of their daily life, one that can lead to highly satisfied, long-term customers.
For more information and to download the white paper visit the ESA website.
1 This report was commissioned by the Electronic Security Association (ESA) and conducted by research firm, Parks Associates. Resideo sponsored the report.