Residential security hits reset

Residential security is growing - but not in the way it once did.

According to a new Parks Associates research report commissioned by the Electronic Security Association (ESA), nearly half of U.S. households now use some form of home security solution.

That milestone signals momentum, but it also underscores a deeper shift underway - security is no longer defined by a single system, long-term contract, or intrusion detection alone.

In Q2 2025, 48% of U.S. households reported owning a home security solution, up from 38% in 2022 - an increase representing roughly 12 million new households. While professionally installed and monitored systems remain foundational to the market, growth is increasingly driven by alternative entry points. Device-only households - those using cameras or video doorbells without a full system - have doubled over the past three years and now account for 14% of U.S. households.

That shift has major implications for the industry. Consumers are assembling security incrementally, often starting with a single device and layering in services as their needs evolve. Cameras, video doorbells, and smart locks have become the “front door” to security adoption, especially for households seeking protection without long-term contracts. Security, in effect, has moved from a one-time purchase to an ongoing experience - one that rewards providers who focus on lifecycle engagement rather than just installation.

Recurring monthly revenue (RMR) remains central to that experience, but it is expanding beyond traditional monitoring. Parks Associates found that 35% of U.S. households now pay for some type of security-related service, including professional monitoring, alerts, or video storage tied to a system or stand-alone device.

Professional monitoring still accounts for nearly two-thirds of paid services and delivers the highest satisfaction levels, reinforcing its enduring value. At the same time, paid self-monitoring, device-based subscriptions, and hybrid models are gaining traction as consumers look for affordability and flexibility.

Consumer behavior highlights clear trade-offs. Half of households that moved from self-monitoring to professional monitoring cited being unavailable during a security event, while others pointed to insufficient detection. These findings point to a growing opportunity for hybrid approaches that blend do-it-yourself (DIY) convenience with professional backup - a model that preserves trust while meeting modern expectations.

Across every segment of the report, video emerges as the center of gravity. Cameras are now the most commonly adopted security device, the most frequent post-install add-on, and the clearest driver of consumer value.

Forty-four percent of security system owners acquired a camera as part of their system, while another 14% added one after installation. Even among professionally monitored households, video devices are the most frequently added components, reinforcing a market-wide shift toward video-centric security experiences.

Consumers increasingly view cameras as the “eyes and ears” of the home, delivering context and verification that sensors alone cannot provide. That demand for context is fueling another critical shift: the rise of verification and intelligence-driven services.

With growing frustration around false alarms - and increasing pressure from municipalities - consumers are gravitating toward artificial intelligence (AI)-powered analytics, sensor fusion, and human-in-the-loop services. Seventy percent of security system owners find video verification highly appealing, while strong majorities express interest in AI-driven analysis and live agent response.

Live agent services, in particular, signal a move from reactive alerts to proactive intervention. When a trained professional can interact with an unfamiliar individual detected on video, security outcomes improve, false dispatches decline and trust deepens - not just with homeowners, but with public safety stakeholders as well. For providers, verification is no longer merely a compliance issue; it is becoming a differentiator and a justification for recurring revenue.

Perhaps most telling, the report shows that future growth lies increasingly beyond intrusion detection. Security system owners express strong interest in add-on services such as fire and gas monitoring, vehicle monitoring, and water leak detection. Even households without a security system show high interest in targeted safety services, pointing to opportunities for modular offerings that do not require full system adoption. These services extend protection beyond the home’s walls and open new entry points for both traditional providers and new market entrants.

Competition in residential security has never been broader, spanning traditional dealers, DIY brands, tech platforms, internet service providers (ISPs), utilities, and cross-industry players. Yet amid that fragmentation, one constant remains: trust. Parks Associates consistently finds higher satisfaction among professionally monitored households, reinforcing the long-term value of reliability, accountability, and service continuity.

The message from the data is clear. Residential security is expanding, but success in 2026 and beyond will favor integrators that embrace intelligence-driven services, verification, and flexible models - while redefining their role from installer to trusted safety advisor in an increasingly connected lifestyle.