CLEVELAND — Demand for personal emergency response systems (PERS) and related alarms in the United States is forecast to expand 7.3% annually through 2021 to $220 million, according to research firm Freedonia Group.
Growth will be driven primarily by an above average increase in the number of people over the age of 65, which is the demographic most likely to utilize these devices. In addition, there is a persistent interest among elderly individuals to age in place in their own homes, rather than to move in with a relative or to an assisted living facility, according to Freedonia Group.
Elderly individuals are much more likely to utilize PERS alarms, since they are at home alone all or part of the time. These and other trends are presented in Security Alarms Market in the U.S, a new study from the Cleveland-based research firm.
Value gains will benefit from the introduction and rising popularity of a variety of value-added features, including:
- medication reminders, dispensing, and compliance monitoring
- fall detection
- vital signs sensors
- voice panic detection
PERS Market Not Without Challenges
Despite the projected market growth, tapping into the PERS market has long presented challenges for security dealers.
In a recent “Monitoring Matters” column, industry consultant Peter Giacalone stated that most installing security contractors who understand the PERS market know the channel experiences high attrition or churn of accounts. Due to the sensitivity and age of the average subscriber, it is not typical or appropriate to have term contract commitments.
“Therefore, all subscribers are typically contracted on a month-to-month basis. Depending on a company’s target vertical market(s), providers can expect to experience subscriber churn of 30%-40% percent annually,” Giacalone writes. “This is obviously much higher than the average attrition of a typical intrusion security alarm business.”
In it reports, Freedonia Group also projects the market for all types of security alarm systems in the U.S. will increase 5.1% annually, reaching $4.9 billion in 2021. Gains will primarily be driven by ongoing growth in construction activity, since new systems are generally installed during initial construction or major renovations. The institutional market, in particular, is expected to benefit as related building expenditures improve from the slow growth of the 2011-2016 period.
