Home Security: Rising Despite a Recession
How has the industry managed to grow when so many consumers are cutting back?
At the risk of attributing anything positive to the Great Recession, at least the country’s economic struggles have inspired more people to be cautious consumers. Carefree splurging is out and careful cost/benefit analysis is in, on every kind of purchase from home theaters to home security.
So, how have the new sensibilities affected sales of home alarms, traditionally seen as non-essential items? As surprising as it might seem, the American home security industry has not only grown but grown steadily. According to a usnews.com article from last September, estimates call for home security to keep growing and reach $34.4 billion by the year 2017.
How has the business managed to thrive in a time when (a) many consumers have less disposable income and (b) burglary and other property crimes have shown a general decline nationwide? Multiple factors can share responsibility for this trend, including.
- Better technology. Advances in technology, particularly wireless systems, have helped make alarm systems more affordable and more accessible. A decade ago, home security cameras probably seemed like a luxury reserved for millionaires – today you can get a small wireless video camera for as little as $100. (And your smartphone can serve as the monitor, eliminating that item from your shopping list entirely).
- The automated attraction. Integration of home automation features into security systems appeals to consumers who like their homes not only safer but also more manageable. Market researchers estimate the number of U.S. home automation systems installed in 2012 at 1.5 million.
- A competitive marketplace. Although big names like ADT and FrontPoint Security continue to dominate the landscape, newcomers continue to make inroads. A number of cable and telecommunications companies and small, crowdfounded providers have entered the security/automation market in recent years, giving consumers even more choices.
Don’t forget the most obvious conclusion: Home security has thrived because it works, providing customers with products and services that they trust.
In a future installment of the Security Blog, we’ll take a look at the dollars and cents of investing in a home security system. Until then, keep coming back to HomeSecuritySystem.com for more information and insights.