The Rising Tide of Security Adoption Across Residential and Commercial Sectors
Market trends and consumer demand are driving the security industry towards a new era of subscription-based services and professionally managed platforms. As consumers and property managers seek integrated solutions that combine video surveillance, access control, cybersecurity, and emergency response, the market is shifting towards a more proactive, reliable, and connected experience.
Security systems remain a consistent presence in U.S. households, with 45% of internet households owning a security solution and 32% subscribing to a security service. According to Parks Associates research, the use of security devices, such as smart cameras and video doorbells, has expanded the market, with adoption rates doubling in the past five years to about 20% of households.
Artificial intelligence is playing a vital role in the security industry, enabling user-friendly experiences through edge and cloud processing, generative content, and agentic features such as chatbots. 26% of home security system owners or intenders desire video analytics to identify specific events, such as distinguishing between people, packages, or cars.
Managed security services provide homeowners with a hands-off approach, where providers handle system maintenance, monitoring, and response coordination. This strengthens the value proposition for consumers, making security solutions more proactive, reliable, and integrated with the broader smart home ecosystem.
77% of all security system owners pay for a service attached to their security system, the majority of which is professional monitoring. Demand for smart home devices or features is the top-rated trigger for purchasing a security system, surpassing nearby crime, insurance discounts, and lifestyle factors like starting a family or traveling more.
Video devices are the most in demand, with almost two-thirds of security system owners reporting the acquisition of video doorbells or cameras as part of their initial system purchase. Smart lighting and locks are also hot opportunities for aftermarket sales, with 8% adding each device type sometime after the initial sale.
Key Market Segments
- Build-to-Rent Communities: The trend of renting single-family homes rather than purchasing creates a unique and expanding market for build-to-rent developers, internet service providers, residential security companies, and smart home solution providers.
- Single-Family Rentals: Single-family renters often seek similar conveniences and connected amenities found in multi-family apartment complexes, while property owners and managers need solutions to easily turn over properties, keep energy costs low when vacant, and enable self-serve viewing for prospective tenants.
- Multi-family Housing: Safety and security are of great interest to residents and prospective multi-family residents, with a recent Parks Associates study rating the importance of security systems at the same level as a fitness center or gigabit internet speeds.
- Senior Living and Assisted Care: Facilities are prioritizing resident safety by integrating fall detection, emergency response systems, and remote monitoring tools to enable faster response times and reduce injury risks.
- Small & Medium Businesses: SMBs rely on connected security solutions to protect their businesses, with concerns about staff safety, theft, and vandalism.
Emerging Opportunities
| Opportunity | Description |
|---|---|
| As-a-service models | The rise of “as-a-service” models presents a major opportunity for security providers to offer ongoing management and monitoring, shifting security from a one-time investment to a long-term service-based revenue stream. |
| AI-powered security solutions | More SMBs are turning to cloud-based and AI-powered security solutions to improve protection while keeping costs down. |
| Integrated security and smart home solutions | Smart home products and security systems can help attract and retain residents, providing additional value by streamlining tenant access, improving property management efficiency, and reducing security risks. |
| Partnerships between security providers and ISPs | Partnerships between security providers and ISPs will become more integral to growth in smart home adoption, allowing consumers to bundle internet and security services for a seamless connected experience. |
Future Outlook
Consumers have more choice than ever in security solutions and are watching their spending. This puts pressure on security providers to delight their customers and meet growing expectations around technology experiences. As AI technology continues to play a crucial role in home security, it will enable more sophisticated security applications and services, providing greater peace of mind for homeowners. With tiered pricing and value-added services, security providers can maintain customers and increase recurring revenue in the increasingly competitive smart home and security space while embracing the many opportunities to expand markets and technology portfolios.