Security Alarm Services in the US Industry Market Research Report Now Available from IBISWorld

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While the recession caused businesses to reduce security budgets, Security Alarm Services industry revenue will recover over the next five years. Revived disposable incomes will encourage investment in low-cost monitored security systems, and industry players will increasingly take advantage of new technology, including biometrics. Furthermore, heightened fire and security codes will continue to increase premiums on insurance policies and fuel consumers' fears of a rising crime rate, positively affecting growth. For these reasons, industry research firm IBISWorld has added a report on the Security Alarm Services industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Firms will use new technologies like biometrics to boost demand from businesses

The Security Alarm Services industry provides the installation, maintenance and monitoring of alarm, fire and surveillance equipment. Locksmiths are included in this industry but generate only a small portion of total sales. “While the industry has benefited from an overall trend toward alarm and surveillance systems, the recession caused many clients to reduce security budgets,” says IBISWorld industry analyst Kevin Culbert. Consequently, in the five years to 2012, IBISWorld estimates that revenue will decline at an annualized rate of 0.8% to $16.7 billion.

The fall in demand for construction following the recession reduced the number of new security systems installed. However, many companies have started to replace labor-intensive security measures, such as guards and patrols, with electronic security systems, which are often more cost-efficient. Government changes to fire and security codes have also boosted Security Alarm Services industry demand, increasing premiums on insurance policies and fueling consumers' fears of a rising crime rate. “The availability of low-cost monitored security systems for the residential market has also increased the household penetration rate,” adds Culbert. “Still, the residential market is sensitive to changes in economic activity, and the recent fall in disposable income dampened demand for new and ongoing services.”

In 2012, industry revenue is expected to increase 1.6% as the economy returns to recovery and businesses start to invest in security again. Despite this growth, profit will remain constricted. As a result, the number of industry firms has declined on average 0.9% per year over the five years to 2012 to 8,979, largely due to major players acquiring competitors struggling in the poor operating environment. For example, Tyco's ADT Worldwide, the largest player in the industry, acquired Broadview Security in 2010. The industry is characterized by a large number of small players, some of which are subcontractors for major players and provide installation and maintenance services. On the opposite end of the spectrum, Tyco occupies a significant portion of the market. This provides the Security Alarm Services industry with a low level of concentration.

In the next five years, industry players will increasingly take advantage of new technologies such as biometrics, which involves face or fingerprint recognition. Small business growth and increased disposable income levels will also contribute to rising industry demand. In the five years to 2017, revenue is projected to increase. Profitability will also improve as operators take advantage of the cost savings and restructuring implemented following the recession. For more information, visit IBISWorld’s Security Alarm Services in the US industry report page.

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IBISWorld industry Report Key Topics

This industry comprises establishments that sell security systems, such as burglar and fire alarms and locking devices, and offer installation, repair or monitoring services of electronic security alarm systems.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit or call 1-800-330-3772.

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Gavin Smith
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