Security Dealer Perspectives: Views from the Front Line

Table of Contents

About the 2023 Surveyed Security Dealers

• Top Five Business Regions
• Average Residential Sales vs. Non-Residential Sales as a Percentage of the Dealers' Total Sales Units

Key Findings and Implications

• Revenue Expectations - % Change Over Prior Year
• Commercial Sales Growth, YoY
• Interest in Partnership with Vendors for New Service Opportunities
• Dealer-Reported Methods of Selling Security System
• Familiarity with Matter Initiative
• Top Three Business Impacts Dealers Expect from Matter
• Impact of AI on Business

2023 Industry Benchmarks and Trends

• Annual Revenues, YoY
• 2022 Annual Revenues
• Expected Changes in Revenues: 2023 vs. 2022
• Changes in Residential Revenues
• Dealer-Reported Average Installations Per Month
• Consumer-Reported Home Security System Ownership, YoY
• Type of Residential Security System Sold
• Company's Strategic Positioning

Business Drivers and Inhibitors

• Business Driver for Security Dealers
• Business Inhibitors for Security Dealers
• Approaches Used to Overcome Staffing Challenges
• Dealer-Reported Methods of Selling Security System

Monitoring, System Pricing, and Interactive Services

• Contract Term of Professional Monitoring Services, YoY
• Percentage of Residential Security System Sales
• Percentage of Firms Selling Specified Service
• Dealer Reported ARPU for Professional Monitoring
• Average Monthly Fee for Home Security Service, YoY reported by Consumers
• Average Monthly Fees for Various Professional Monitoring Services
• High Intention of Offering Add-On Services to Professional Monitoring
• Likelihood of Offering Add-On Services to Professional Monitoring in the Next 12 Months
• Interest in Partnership with Vendors for New Service Opportunities
• Inhibitors for New Value-added Service
• Subcontract Work to Others

Security Dealers & Smart Home Devices

• Security System Installations Including Smart Home Devices
• Installation of Smart Home Devices
• Security System Integration with Customer Owned Smart Home Devices, YoY
• Average Upfront Price by Type of Security Systems
• Difficulty of Integrating Smart Home Devices with Security System

Expected Impact of Matter and AI

• Familiarity with Matter Initiative
• Home Automation Standards, X10 to Matter
• Expectations on Matter Standard to Impact Business
• Impact of AI on Business
• AI as Selling Point for Smart Home Device Solution

Infrastructure & Ecosystem

• Method of Providing Professional Monitoring Services
• Companies Providing Professional Monitoring System
• Top Ranked Considerations in Selecting a Central Monitoring Station
• Primary Communication Path for Security Systems
• Installation % for Various Control Panel Brands, YoY
• High Importance of Control Panel Features

DIY/Self-Installed Security Systems

• % of Dealers Selling Self-Install Systems
• Method of Installation: Residential Security Sales by DIY System Dealers
• Installation Method for All Home Security Systems
• Installation Method for Home Security Systems Acquired within the Past 12 Months
• Reasons for Selling DIY Security Systems - % Ranking Reason Most Important
• Average % Professional Monitoring Service Adding After Self-Install System Sale
• Impact of DIY Systems on Residential Security Dealers
• Dealers Reporting Losing Sales to DIY Security Systems & Devices

Dealer Business Strategies: Commercial Growth & Succession

• Business Operating Length
• Business Owner
• Commercial Sales Growth, YoY
• Reasons to Increase Commercial Sales
• Succession Plan of Company
• Company Succession Statement

Appendix