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Security Alarm Services in the US Industry Data and Analysis
The Security Alarm Service industry has seen stable growth alongside a broad economic recovery. A hot housing market in the immediate aftermath of the pandemic increased spending on security alarm services, and even as residential markets cooled, the industry has continued to grow. Despite falling crime rates, the fear of crime has risen on the back of media coverage, providing security alarm system companies with valuable revenue streams. Consequent industry revenue is anticipated to rise at a CAGR of 2.3% through 2025 to reach $38.6 billion, including growth of 2.4% in 2025 alone.Modern security alarm providers are embracing cutting-edge technology, allowing users to control their systems through smartphones and voice assistants like Amazon's Alexa or Google Assistant. This interconnected setup makes these smart security options increasingly appealing to consumers. Technological advancements will keep shaping security alarm systems, with AI integration expected to make them more proactive. Machine learning algorithms will enhance video surveillance by intelligently flagging suspicious activity while ignoring routine movements. Providers will also integrate advanced cybersecurity technologies to meet the demands of a more discerning client base.
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What's included in this industry analysis
IBISWorld's research coverage on the Security Alarm Services industry in the United States includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Security Alarm Services industry in the United States operates under the NAICS industry code 56162. This industry comprises establishments that sell security systems, like burglar and fire alarms and locking devices. They also offer installation, repair and monitoring services of electronic security alarm systems. While the industry includes locksmiths, the locksmith segment isn't a primary focus of this report because it generates a relatively small portion of revenue. Related terms covered in the Security Alarm Services industry in the United States include biometrics, closed-circuit tv (cctv) and monitored security system.
What's included in this industry?
Products and services covered in Security Alarm Services industry in the United States include Nonresidential security system installation services, Nonresidential security monitoring services and Residential security monitoring services.
What companies are included in this industry?
Companies covered in the Security Alarm Services industry in the United States include Adt Inc. and Johnson Controls International Plc.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Security Alarm Services industry in the United States.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Security Alarm Services industry in the United States.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Security Alarm Services industry in the United States.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Security Alarm Services industry in the United States. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Security Alarm Services industry in the United States. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Security Alarm Services industry in the United States. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Security Alarm Services industry in the United States. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Security Alarm Services industry in the United States.
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Frequently Asked Questions
What is the market size of the Security Alarm Services industry in the United States in 2026?
The market size of the Security Alarm Services industry in the United States is $38.6bn in 2026.
How many businesses are there in the Security Alarm Services industry in the United States in 2025?
There are 82,991 businesses in the Security Alarm Services industry in the United States, which has grown at a CAGR of 4.3 % between 2020 and 2025.
How may import tariffs affect the Security Alarm Services industry in the United States?
The Security Alarm Services industry in the United States is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Security Alarm Services industry in the United States?
The Security Alarm Services industry in the United States is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Security Alarm Services industry in the United States grown or declined over the past 5 years?
The market size of the Security Alarm Services industry in the United States has been growing at a CAGR of 2.3 % between 2020 and 2025.
What is the forecast growth of the Security Alarm Services industry in the United States over the next 5 years?
Over the next five years, the Security Alarm Services industry in the United States is expected to grow.
What are the biggest companies in the Security Alarm Services industry in the United States?
The biggest companies operating in the Security Alarm Services industry in the United States are Adt Inc. and Johnson Controls International Plc
What does the Security Alarm Services industry in the United States include?
Residential security monitoring services and Nonresidential security monitoring services are part of the Security Alarm Services industry in the United States.
Which companies have the highest market share in the Security Alarm Services industry in the United States?
The company holding the most market share in the Security Alarm Services industry in the United States is Adt Inc..
How competitive is the Security Alarm Services industry in the United States?
The level of competition is moderate and increasing in the Security Alarm Services industry in the United States.
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