We keep an eye on the alarm industry on behalf of our clients — and to better understand its current landscape and the risks involved. One question that alarm installation businesses always have is the possibility of growth. Is now a good time to pick up clients? Should they brace for a shrinking market? Is the area becoming saturated with alarm products?
We’ve got good news about 2023: Despite consistent growth in the past several years, the alarm systems market still has plenty of growth opportunities. That means we’re still seeing chances for new business in 2023 and beyond. However, the market is also facing some headwinds, including lingering issues from COVID-19 and more. Let’s summarize what’s going on so you know what to expect.
Growing Development Also Means Growing Fire Alarm Installation Opportunities
Many development projects delayed during COVID have come back online now, which means the next few years are going to be filled with opportunities for alarm installers to partner with local developers, especially in high-growth areas.
This growth affects both brand new developments and upgrades or remodels to existing lots. While the United States is farther ahead in fire alarm installation than many countries, there are still a surprising number of necessary upgrades. Around 10% of U.S. homes don’t even have smoke alarms, and of those that do, around 20% have alarms that don’t work at all.
State laws also continue to increase the requirements for fire alarms, especially wired alarms. Many of these laws target new developments or homes that are being remodeled. That leads to a lot of necessary new installations when homeowners are planning upgrades. The commercial market faces similar, even more stringent requirements.
Growing Demand for Burglar Alarms Improves Projections
The burglar alarm sector is poised for some of the highest growth worldwide, including providers in the United States. Two important drivers are fueling this growth throughout the 2020s.
First, there’s increased demand for high-level security in residential areas and commercial buildings alike. From tenants looking at apartment complexes to building owners working out leases with new businesses, everyone wants increased security these days. People are less satisfied with older alarm systems and want more advanced access control options. There’s growing demand for comprehensive burglar alarms with warning systems, monitoring services, advanced door passcode technology, and more. Keyless access control in particular is becoming a common request. Installers can also expect continued demand for all security upgrades related to property protection, and property damage crimes continue to grow.
COVID Struggles Remain, But Recovery is On the Way
COVID was a harsh blow for the alarm market in several ways. First, businesses limited their extraneous spending in many areas, which typically meant cutting back on alarm upgrades. Second, serious supply chain issues made it more difficult to get parts, increasing the overall costs of alarm system materials and delaying shipping. Third, COVID was followed by rising inflation, especially for consumer goods, which meant that residential owners also became less likely to invest in new alarm systems.
These issues are still challenging in 2023, but signs of recovery are showing up. Broad indications of inflation are easing, as are the high interests used to combat it. This is likely to free up more spending for alarm upgrades, in many cases upgrades that have been on the list but delayed for years.
Value Remains a Key Driver
More and more, robust alarm systems are seen as an indicator of value, which is also helping improve demand. Tenants looking for a new apartment are more interested than ever in the latest alarm systems and smart security. Commercial owners are looking to make their offices and storefronts more desirable, and upgraded security is one of the easiest options at hand. Homeowners that are considering flipping or selling properties are also noting the increased importance of the latest alarm technology among buyers. It’s no surprise that security installations rank high on home improvements in the current market.
Wireless Conversions Still Have a Long Way to Go
Upgrading to wireless alarm systems remains a popular choice, and those conversions continue to offer steady work for alarm installers across the country. Like we mentioned above, alarm projects like these were often put on hold in recent years, but in 2023 we’re seeing them start to take higher priority. The benefits of wireless systems are simply too large to ignore for commercial and residential owners alike (the industrial sector doesn’t benefit as much).
There are two important factors to keep a watch on here. First, installers continue to compete against the DIY market. DIY wireless alarms can decrease demand for professional installation. However — especially with more complex systems — they don’t have to. Brands and homeowners alike are requesting professional visits for quotes, recommendations on placement, training, and even outright installation for owners that don’t have the time or physical capabilities to do it themselves.
Second, while phasing out older data technologies like 3G has been happening for a while, many alarm systems have yet to catch up. There’s still plenty of demand to convert to newer data standards.
Conclusion
Despite ongoing struggles with discretionary spending, the United States alarm market has a lot to look forward to. From wireless conversions to growing demand for property damage prevention, 2023 and the coming years should see many opportunities for new work. Installers should work on certifications for the latest brands and technology to stay on top of market needs.
