DALLAS — The rate of growth in the home security market is slowing down, which could mean a need for new innovations in the market. That’s the conclusion of the 2004 Home Security Report by industry research firm Parks Associates. Parks says as of 2003, 25 percent of U.S. households have electronic security systems, which is up 3 percent from 2001 and 13 percent from 1996.
“The growth has flattened out quite distinctively,” says Kurt Scherf, Parks’ vice president and principal analyst. “The industry is ripe for new revenue opportunities.” Many of those opportunities, according to Scherf, involve tying in security with structured wiring systems and tapping into broadband households. “Consumers with Internet access are more likely to have a home security system,” Scherf says. “The increasing crackdown on false alarms will continue and consumers will be looking on more reliable solutions. The question is whether broadband is reliable.”
The report also finds the largest markets for home security have been in the South and West and the top three brands of security systems installed by contractors are Honeywell Security (ADEMCO), HAI and GE Security (Interlogix).