According to Park Associates, leaders in research and analysis in digital living technologies, the residential burglar alarm and monitoring market is on track to increase 9 percent in 2010, and 27 percent over the next three years. This is a positive projection for the multi-billion dollar industry that took a hard hit from the economic downturn.
Home security sales across the United States took a hard hit in 2008 and 2009 primarily because the real estate market quickly tanked. A hurt economy resulted in far fewer new homes being constructed, which also resulted in fewer new customers. A widespread tightening of consumer budgets also slowed potential sales. When an existing home with an alarm system is sold, alarm companies have the chance to make two new sales. First, the homebuyer is likely to retain the existing system and become a new customer. Second, the home seller is likely to hire the alarm company to install a system within the new house. Arguably, out of the recession came an additional market sector: 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 effects of the global recession. There was a new increased focus on customer retention as many customers struggled to pay everyday bills. Like with any industry, those companies that prepared early, improving operation efficiencies and cost cutting, managed to weather the harsh economic storm. Recessions often force companies to think more critically about spending both time and money with respects to efficiency and profitability. They bring about new thinking and change.
The outlook for 2010 in the alarm industry remains somewhat positive. More than half of all alarm security dealers, according to the SDM, believe that after a better year in 2009, the next year will hold increased revenues. Parks Associates estimates the United States residential intrusion and monitoring market will account for more than $9 billion in 2010. Nearly 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 6 percent of revenues will come from installation labor ($521 million). Ultimately, the alarm industry will continue to grow and change as it looks to bounce back from an unusually poor year.
Home security sales across the United States took a hard hit in 2008 and 2009 primarily because the real estate market quickly tanked. A hurt economy resulted in far fewer new homes being constructed, which also resulted in fewer new customers. A widespread tightening of consumer budgets also slowed potential sales. When an existing home with an alarm system is sold, alarm companies have the chance to make two new sales. First, the homebuyer is likely to retain the existing system and become a new customer. Second, the home seller is likely to hire the alarm company to install a system within the new house. Arguably, out of the recession came an additional market sector: 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 effects of the global recession. There was a new increased focus on customer retention as many customers struggled to pay everyday bills. Like with any industry, those companies that prepared early, improving operation efficiencies and cost cutting, managed to weather the harsh economic storm. Recessions often force companies to think more critically about spending both time and money with respects to efficiency and profitability. They bring about new thinking and change.
The outlook for 2010 in the alarm industry remains somewhat positive. More than half of all alarm security dealers, according to the SDM, believe that after a better year in 2009, the next year will hold increased revenues. Parks Associates estimates the United States residential intrusion and monitoring market will account for more than $9 billion in 2010. Nearly 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 6 percent of revenues will come from installation labor ($521 million). Ultimately, the alarm industry will continue to grow and change as it looks to bounce back from an unusually poor year.
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