Investment Trends For Home Security


The residential burglar alarm and monitoring market is on track to grow 9 percent in 2010, and 27 percent over the next three years, according to Park Associates, leaders in research and analysis in digital living technologies. This is a much-needed projection for the multi-billion dollar industry that was deeply affected by the economic downturn.

Home security sales across the United States took a hit in 2008 and 2009, primarily because the real estate market quickly tanked. A hurt economy resulted in far fewer new homes being constructed, meaning fewer new customers. A widespread tightening of consumer budgets also hindered potential sales. When an existing home with an alarm system is sold, alarm companies have the opportunity for two new sales. First, the homebuyer is likely to keep the existing system and become a new customer. Second, the home seller is likely to hire the alarm company to install a system in the new house. An additional market sector arguably came out of the recession, the fear driven consumer.

According to the Security Dealer Magazine (SDM), home alarm security systems continue to be a necessity in America’s homes and businesses, even in these turbulent and unknown economic times. The proof is found in the solid numbers, showing a 6 percent growth in the monthly monitoring rate, and a 2 percent rise in the total annual revenue.

Many companies felt the painful affects of the global recession. There was a new sharp focus on customer retention as lost of customers struggled to pay the bills. As with any industry, companies that prepare early by improving operation efficiencies and cost cutting, managed to survive the harsh economic storm. Recessions often force companies be critical about spending their time and money in both efficient and profitable ways. They also bring new ways of thinking and different ways of doing things.

The outlook for 2010 revenues in the alarm industry looks positive. More than half of all alarm security dealers, according to the SDM, believe that after a more prosperous year in 2009, the next year holds potential for increased revenues. Parks Associates estimates the U.S. residential intrusion and monitoring market will account for more than $9 billion in 2010. Almost 75 percent of the consumer-level spending will come from monitoring revenues ($6.7 billion), while just under 20 percent will come from hardware purchases ($1.8 billion), and only 6 percent of revenues will come from installation labor ($521 million). Eventually, the alarm industry will continue growing and morphing as it looks to bounce back from an unusually poor year.

For more information about Dallas Home Security. Stop by the Smith Security site where you can find out all about Atlanta Home Security Alarms and we may be able to help.

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