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How Dealers Are Protecting Their Home Turf

Defined battle lines are being drawn in a reshaped residential market as traditional security dealers maneuver to stake their claim vs. new entrants with deep pockets. The latest research reveals key market disruptions, revenue projections, preferred connected services and much more.




The leading smarthome devices desired by dealers from interactive service providers are cameras, door locks and home-safety devices. Notably, these features are all security related, rather than, for example, money savings or even convenience. Parks Associates believes this will change, to a significant degree, over time as other benefits and features become more familiar to consumers, such as cost savings via energy management.All features will improve and expand in terms of “smartness” and, in turn, the power to enhance consumers’ lifestyles and management options will also increase. This expansion of functions is happening at prices that are affordable by a solid chunk of U.S. homeowners. As important for the health of the industry, revenues are arriving. Initially, these will only offset investments in learning and category participation. However, profit is on the horizon. Not every provider will make it as not every entry in any new marketplace succeeds. Competitive pressure and market positioning are intense.

Nonetheless, the offerings are expanding in scope and in diversity, creating some pull for different types of consumers. Security dealers that do not participate will be relegated to competing on price alone. While some dealers can own that position, it is the toughest of all long-term plays.

A telling indication of security dealers’ acknowledgement of change is in their views of what factors provide their companies’ differentiation and advantage today, and what factors will matter in three years (see graph at left).

Today, nearly 50% of our surveyed dealers believe customer service sets them apart; however, only one-third believe that will be so in three years. Instead, more than half believe that offering a “one-stop solution” will be a core differentiator in three years. Also increasing in importance for differentiation, according to security dealers, is customization and innovative offerings.

Tricia Parks is CEO and founder of Dallas-based research firm Parks Associates. 

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Article Topics
Business Management · Research · Industry Research · Parks Associates · Research - Security STATS · All Topics
Industry Research, Parks Associates, Research - Security STATS


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