Security monitoring revenues increase despite declines in sales and home construction
Security Monitoring Fees for U.S. households have increased 15% since 2007
In its latest report Home Systems: Home Security - Analysis and Forecasts, Parks Associates finds the average monitoring fee for a U.S. household increased from $28.60 to $32 between 2008 and 2010. This rise has kept revenues from home security relatively stable, despite declines in overall sales due to weak home sales and catastrophic drops in new starts. This strategy relies on a group of existing customers who will retain their service despite rising monthly costs, which has been successful but has its limits.
"IP technologies open the door on all industries to new, nontraditional competitors," said Tricia Parks, CEO, Parks Associates. "Moving forward, the security industry must be careful not to raise monthly fees too quickly, or it risks accelerating entry of these new players. Continued aggressive fee increases may create shortterm benefits but risk longterm turbulence. Instead, security companies need to reposition to win new customers, rather than expecting their existing customers to carry the burden."
Home Systems: Home Security - Analysis and Forecastsprovides an overview of the U.S. residential security market. It includes an assessment of the current and future market, consumer data on monitored security households, a review of dealer activities and challenges, briefs on selected industry players for equipment and monitoring, market forecasts, and scenarios for the future, including potential catalysts and inhibitors to market health.
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Parks Associates is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates creates research capital for companies ranging from Fortune 500 to small startups through market reports, primary studies, consumer research, custom research, workshops, executive conferences, and annual service subscriptions.
The company's expertise includes new media, digital entertainment and gaming, home networks, Internet and television services, digital health, mobile applications and services, consumer electronics, energy management, and home control systems and security.
Each year, Parks Associates hosts executive thought leadership conferences CONNECTIONS(TM) , with support from the Consumer Electronics Association (CEA)®, and CONNECTIONS(TM) Europe. In addition, Parks Associates produces the online publication Industry Insights in conjunction with the CONNECTIONS(TM) Conference series.