The home security market is a competitive one. For years, traditional alarm and security companies have worked hard to provide consumers with enhanced services and new home security system features that would keep them ahead of their competitors in the industry.
But the industry is rapidly changing – and becoming increasingly competitive. In the past 5 years, new competitors have emerged in the home security market. Now, consumers can choose from traditional alarm systems, DIY home security systems or new up-and-coming smart security technologies.
And alarm companies aren’t the only ones vying for consumer’s business and attention.
New Competitors in the Home Security Market
Phone and internet providers are now investing in the alarm industry, offering home security and home management services alongside telephone and cable. As one article from Forbes puts it, “big cable and telco providers have invaded the space in recent years, hungry to add a fourth leg to their three-legged broadband/phone/TV stool.”
Many traditional alarm companies have years of experience in the industry, and – as Jim Callahan, VP of Ackerman Security in Atlanta, explains in a Security Info Watch article – “security companies are typically more trusted than cable companies or telecomm companies in terms of providing services.”
However, these new competitors in the industry are making waves. Why? Because these phone and cable companies can offer consumers a variety of things that many traditional alarm companies cannot. Most importantly, they offer convenience and automation.
New Offerings: Automation & Remote Monitoring
In a USA Today article, Peter Rogers, co-founder of FrontPoint Security, reports that nationwide, about 20% of homes are equipped with traditional home security systems, but approximately half of those systems are not used because consumers tire of the hassle of turning them on and off. These new security system providers have found a way to solve that problem with remote monitoring and home automation.
Additionally, consumers are increasingly interested in bundling their home security with other conveniences, such as their phone, internet and cable. This has given these new competitors in the home security industry a leg up on the more traditional home security companies – and put traditional alarm companies at a significant disadvantage.
However, some believe that although phone and cable companies have begun to encroach on the home security industry, traditional security companies will ultimately prevail. “The process still starts with security, with enhanced services layered onto the security system or panel,” says Callahan in Security Info Watch. “I believe end users will still look to the security industry first for services, even though other entrants will attempt to provide these types of products and services. End users have confidence in the level of service that comes from a one-on-one relationship with a local security company.”
Are Traditional Alarm Companies Done For?
What does this new competition in the industry mean for your alarm security company? Are you ready to join the home automation revolution? Will your organization update and incorporate the technology required to provide remote monitoring, home automation and convenience, or is it time to sell your security alarm company?
Contact AFS today at (800) 354-3863 (Rory’s cell phone) for a free, no-obligation business valuation. We can provide valuable insight and help you decide if now is the right time to sell your alarm company.
Interested in learning more about what today’s consumers are looking for in a security alarm company? Find out which features today’s consumers are craving.
Wondering if your traditional alarm business should try to adopt DIY security options for today’s consumers? Learn about what to expect when it comes to incorporating new offerings into your traditional alarm company business model.