For years, possibly decades, the adoption rate of residential physical security systems stood at about 20%. But the tide has turned in a big way, bringing with it a wave of new opportunities for systems integrators in networking, automation and connected technologies.

Security may not always be the lead sale, but it’s definitely getting in the door, as evidenced by the home market’s growth spurt. Today, it could be a primary installation, or may arise from connected video doorbells, energy management, lighting, detection and other smart products as consumers continue to add to their array of connections in the age of the internet of things—a phenomenon known as device stacking.

According to Parks Associates, a research firm dedicated to the smart home, physical security and connected markets, the home security industry gained millions of new households in 2020 and 2021. Currently, some 36% of all internet-connected households in the United States have a home security system, a 14% increase from 22% five years ago. Greater awareness and implementation of DIY systems, the pandemic, economic uncertainty and an overall need for security has peaked consumer’s desires for safety and stability.

More devices attached to the network

The ecosystem of home products is changing. It’s not just one product or technology—but an array of devices attached to the network that work together to provide convenience, safety and even health and wellness to homeowners. Smart devices can include light bulbs; IP cameras; door locks; smoke, water and temperature detectors; and other automated controls such as smart vents and air quality sensors.

Data from Parks Associates indicates that convenience, comfort and peace of mind are the top three benefits influencing smart home device purchases; 39% of consumers value convenience, while 34% said that comfort is a driving factor and 31% said peace of mind is key.

The value proposition of the smart home is more clearly understood among consumers, said Elizabeth Parks, president and chief marketing officer of Parks Associates. Further fueling growth are lower-priced products and increased overall awareness and familiarity with smart home technologies. Parks, who presented on a September 2022 webinar, “Security Industry Megatrends: State of the Smart Home Market,” added that private equity activity, acquisitions of service providers and increased integrations between products are also driving new services.

“A few years ago, people were concerned that Ring would take away business, so certainly there’s more competition. But a new segment of the market has been tapped. DIY has brought in a new customer who is getting a taste of the look and feel of home security, and those are the ones who are moving to professional monitoring from self-monitoring. Expansion of the system continues once you have a foot in the door. If you offer an upsell, customers will take it,” she said.

The average household has 16 connected devices, Parks said, and that means the network infrastructure has to be ready and reliable for communications and include devices to ensure wireless connectivity.

“Users are completely dependent on the home network,” said Quentin Gunther, sales leader for the Resideo Premier Security Dealer Program and another of the webinar’s presenters. 

“Several years ago, we never sold a mesh network, but now our dealers are installing them. There’s a huge opportunity to be the support company that makes sure everything is working and devices are connected.”

Before you assume that the residential market isn’t for you, consider that technology is blurring lines between commercial and residential. People want the same conveniences at home that they get in the office. A commercial customer is a natural extension from their facility to the home.

What’s up next?

Competition has changed and is sometimes steep. Consumers are looking for a single solution provider for all their automation, security and safety—and will go elsewhere if systems integrators don’t deliver. Systems integrators can help themselves and the market by consistently engaging with consumers and educating them on the different products and services that can make their life more convenient, secure and safer.

From touchless faucets to telehealth, data safety, cybersecurity, personal emergency response systems, aging-in-place products and even cloud gaming, the universe for systems integration is expanding.

Jason Lutz, distribution and brand ambassador sales leader and industry affairs leader for Resideo, believes that more than ever, lay consumers are leading their purchases starting with connected lifestyle products. 

“It’s no longer the future—smart homes are the present. As an industry we have to adapt and move in this direction or risk becoming irrelevant,” he said.