Residential security market relies on innovation to maintain edge
January 29, 2004
PALO ALTO, Calif. - Despite an economic slump, the residential security market is experiencing a fair amount of growth buoyed by a healthy new construction market, increased security consciousness, and the declining cost for security.
New analysis from Frost & Sullivan on the U.S. Residential End-User Security Market shows that this market generated revenues worth $1.72 billion in 2002 and is expected to reach $3.21 billion by 2009.
The report talks about the competitive residential security market and how its competitive nature has intensified lately due to tough economic conditions. To maintain an edge in the market, many security companies are coming up with new approaches to garner more business as profit margins shrink due to mass-market programs and aggressive pricing tactics.
For example, bundled services is gaining momentum, with traditional fire and burglar alarm coming together with home automation equipment, telecom services, Internet and structured cabling.
According to Frost & Sullivan, many of these efforts are starting to pay off as more housing developers are beginning to install security systems during the construction phase.