Security dealers are looking to new areas to bolster their revenues, and that includes DIY systems, according to consumer technology and smart home research firm Parks Associates.
According to new research on the security market, 30% of security dealers sold DIY systems in 2023, but nearly all retained their core business of selling professionally installed systems as well.
DIY systems, especially in the security market, are growing in the smart home industry. Major players like Amazon’s Ring and Google’s Nest have long been catering to both the professional installation market and DIYers alike, and most newcomers to the DIY security market do offer partner programs for integrators and dealers. However, some don’t appear to partner with integrators, such as Abode.
According to Jason Paris, vice president of business development at Parks Associates, economic factors and the housing market is giving rise to the DIY security system, which is typically less expensive than more professional-grade systems and costly installation labor rates.
“High interest rates and low home sales meant fewer consumers were moving into resales, a critical time for acquiring a new security system and monitoring services,” Paris says. “Inflation continues to temper consumer spending while DIY products competed with security systems for consumers’ wallets.”
Recent DIY system announcements include one from ADT, which has historically partnered with professional installers, that includes a selection of pre-built and customizable systems as part of a partnership with Google Nest.
In addition other players like Xfinity and Roku have recently announced their own DIY security products.
Parks research released in October 2023 found that 10% of U.S. internet households own a DIY security system, and 28% pay for a security service attached to a security system or smart device. This is making it difficult for local security dealers to keep up with national tech-first, online players with a presence in multiple markets.
“Brands must compete on their hardware, price-value equation, ease of purchase, and new features,” says Elizabeth Parks, the research firm’s president and marketing chief. “All major players retained or gained share year-over-year, indicating that the smaller players, including local traditional security dealers, are seeing their share of the market dwindle.”
