Cause for alarm: Small-business growth and increased disposable income levels will boost industry revenue

The Security Alarm Services industry installs, maintains and monitors alarm, fire and surveillance equipment. The industry expanded over the five years to 2018. Much of this growth was driven by rising residential and commercial construction activity, which bolstered demand for new security system installations. However, many security and alarm services companies were acquired by larger competitors over the past five years because of weakened profit and tough operating conditions. Despite these consolidations, in recent years, the popularity of value-added offerings helped boost industry demand, as many industry operators found other outlets for revenue growth by adding health, comfort and safety features to their standard security monitoring services...purchase to read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 13-18
5.4%
Forecast Growth 18-23
Profit
Employment
204,709
Businesses
74,370
Market Share of Companies

Industry Threats & Opportunities

  • The popularity of value-added offerings helped boost industry demand
  • Vibrant demand from downstream markets has encouraged companies to enter the industry
  • In the residential market, rising disposable income and housing starts will spur industry growth
  • Industry Report - Industry Analysis Chapter

    Revenue in the Security Alarm Services industry is expected to increase at an annualized rate of 5.4% to $25.7 billion over the five years to 2018. The Security Alarm Services industry offers the installation, maintenance and monitoring of alarm, fire and surveillance equipment. The majority of industry demand comes from the residential market, as industry operators commonly install and provide monitoring services for single-family homes. The commercial market, which includes retail stores, offices and manufacturing facilities, is another major market for industry operators, as businesses install alarm systems to prevent theft and intrusions, alert their employees of potential fire hazards and lower annual insurance premium costs. Ove...purchase to read more.

    Additional Insights for the Security Alarm Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Security Alarm Services Industry are

  • Must comply with government regulations
  • Effective cost controls
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Value of private nonresidential construction in the Security Alarm Services industry impact industry performance..

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    What's in this report

    What is the Security Alarm Services Industry?

    This industry comprises establishments that sell security systems, such as 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 is not a primary focus of this report because it generates a relatively small portion of revenue.

    Industry Products
  • Residential security alarm system services with monitoring
  • Nonresidential security alarm system services with monitoring
  • Residential security system and lock installation without monitoring
  • Nonresidential security system and lock installation without monitor
  • Industry Activities
  • Alarm system monitoring
  • Alarm system sales, installation and repair
  • Burglar alarm monitoring
  • Burglar alarm sales, installation and repair
  • Fire alarm monitoring
  • Fire alarm sales, installation and repair
  • Security systems monitoring
  • Security alarm sales, installation and repair
  • Providing locksmith services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Value of private nonresidential construction
  • Value of residential construction
  • Housing starts
  • Crime rate

  • Current Performance
  • Increased demand
  • Consolidation and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Gradual growth
  • Consolidation and profit
  • Table: Security Alarm Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Security Alarm Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Retail Trade
  • Educational Services
  • Healthcare and Social Assistance
  • Public Administration
  • Consumers

  • Key Selling Industries
  • Electricians
  • Power Conversion Equipment Manufacturing
  • Security Services

  • Products & Services
  • Residential security alarm system services with monitoring
  • Nonresidential security alarm system services with monitoring
  • Nonresidential security system and lock installation without monitor
  • Residential security system and lock installation without monitoring
  • Other
  • Chart: Security Alarm Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential clients
  • Business and commercial clients
  • Government and not-for-profit clients
  • Chart: Major Market Segmentation for the Security Alarm Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Security Alarm Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Security Alarm Services Industry

  • Industry Globalization
    ADT Inc., Johnson Controls International PLC,
  • Table: ADT Inc. - financial performance
  • Table: Johnson Controls International PLC - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Security Alarm Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Security Alarm Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Value of residential construction (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Biometrics
  • A technology that involves the use of face-, fingerprint- or similar recognition of individuals to enable secure access.
  • Closed-Circuit Tv (Cctv)
  • The use of video cameras to transmit a signal to a specific place on a limited set of monitors.
  • Monitored Security System
  • A security system that involves CCTV monitoring or similar technologies.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Security Alarm Services is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Security Alarm Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Security Alarm Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Security Alarm Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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