The latest entry in our 2025 Security Industry Predictions series is Elizabeth Parks, president and chief marketing officer at Parks Associates, which produces research about what’s going on in the physical security world and beyond.
Security Sales & Integration: Without getting into any specific vendors or branded solutions, what technology category or solution area do you see as 2025’s ripest, most profitable growth opportunity for security dealers, installers and integrators? Explain your reasoning.
Elizabeth Parks: Wearables is a growth market increasingly led by its new services and subscriptions ecosystem.
Consumer adoption of wearables has hit an all-time high, with nearly half of US internet households owning one or more smart watch or fitness trackers. Device makers must carefully evaluate their next strategies – to widen appeal and break into the remaining untapped market, or to hone in on existing users with advanced features and functionalities.
Current adopters seek out features such as fall detection and emergency SOS, panic button functionality, and the ability to automatically call for help in the case of a health event.
Parks Associates Research finds that over half of wearables purchase intenders say they are willing to pay a higher fee for a model with 24/7 professional security monitoring, adding the potential for RMR (recurring monthly revenue) to this line of products.
Safety and security are themes in Parks Associates research on wearables: 80% of US internet households would pay more for at least one tested solution, such as emergency SOS features or tracking the location of an elderly relative.
Industry players are offering those solutions in wearables already. One example is Apple, which has recently expanded its Emergency SOS feature in iOS 18, allowing users to send messages via satellite and share live video with 911 operators.
Image courtesy of Parks Associates
SSI: These days, we’re all hearing a lot about the cloud migration, AI/machine learning, crime deterrence vs. crime reactiveness, etc. Which of these “hot topics” do you think is overplayed? Which ones do you think will truly transform the practice of security integration in the coming years?
Parks: Alarm verification is critical in today’s security environment. Technology is transforming the capabilities of alarm systems to be able to verify what is happening in the environment. Verification can happen in many ways, but video verification and remote verification using cameras and AI (artificial intelligence) are where we are seeing the most innovation right now.
Sensors, cameras, and panels constitute the core of the security system. 69% of system owners report sensors (intrusion, motion, or glass break sensors) as part of their system at purchase and 63% have a video doorbell or camera. The addition of multiple components raises the overall package price and allows for revenue growth for system providers, even if the overall customer base remains flat.
Image courtesy of Parks Associates
SSI: On the business and operations side, which single factor (e.g., interest rates, talent-related issues, geopolitical stressors) poses the biggest challenge for the security industry right now? How can business owners mitigate their downside risk?
Parks: The biggest risk for traditional security companies right now is not changing to meet the demands of customers. Consumers expect interactive services and if security companies are not considering solutions beyond the alarm, they will have trouble competing in today’s market.
Leadership in companies need to invest in their website, which is the new front door for consumer buying, demand for alerts and notifications, enabled by new devices like video doorbells and networked cameras attaching to the security system.
Different security solutions are reaching unique customer segments. Professionally monitored households are higher income homeowners. Many have children, but many are also older, retired customers.
Self-monitoring subscriptions and stand-alone security devices reach different customer sets. Brands are wary of cannibalizing their traditional solutions but offering a portfolio of devices and services reaches more customers. Targeted messaging aligning with each segment’s customer characteristics can enhance marketing effectiveness.
SSI: What’s getting better about the security industry these days? What seems to be getting worse and worse?
Parks: The market is bigger, as a result of new security devices being introduced. Consumers have a growing familiarity around connectivity, technology, and the value provided by devices in the home.
Labor force continues to be a great challenge. In addition, adapting to change quickly enough will continue to be a great challenge for smaller traditional security providers, to meet the demand for value added services enabled by devices attached to systems.
SSI: What’s liable to catch some security dealers, installers and integrators off guard in the coming year?
Parks: Tech giants are continuing to offer new solutions to the market for the connected home. This will create more competition in the market, making it that much more important to be able to sell all the bells and whistles consumers and business want for their security and safety monitoring solutions.
SSI: Finish this sentence: 2025 will be remembered as the year that the security industry…
Parks: …embraces the lock market. The lock market is undergoing a significant transformation, driven by the rise of smart locks that integrate with connected ecosystems, offering enhanced security, convenience, and compatibility with emerging smart home standards like Matter. This is an important area for security providers to watch.
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