$35.9bn
$X.Xbn
225k
83,324
$XX.Xbn
Security alarm service companies have experienced noticeable fluctuations in recent years, primarily driven by volatile economic conditions. Businesses and commercial clients, which account for more than half of the industry’s purchases, have been particularly affected by broader economic trends such as corporate profit levels and overall economic growth. On the other hand, COVID-19 introduced significant supply chain disruptions and a general decline in economic activities. This economic shock made businesses hesitant to invest in new security systems, leading to a drop in demand during 2020 and 2021. In 2022 and 2023, the residential segment faced its own hurdles due to rising mortgage rates, contributing to stagnant revenue growth in the security alarm services sector.
Industry revenue has grown at a CAGR of 0.3 % over the past five years, to reach an estimated $35.9bn in 2024.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
---|---|---|---|---|
Adt Inc. | 7,230.0 | 1,179.0 | 16.3 | |
Johnson Controls International Plc | 1,279.0 | 168.2 | 13.1 | |
Api Group Corporation | 402.1 | 37.1 | 9.2 |
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Security Alarm Services in the US
Industry revenue is measured across several distinct product and services lines, including Nonresidential security system installation services, Nonresidential security monitoring services and Residential security monitoring services. Nonresidential security system installation services is the largest segment of the Security Alarm Services in the US.
Economic volatility has significantly impacted demand for nonresidential security system installations
This industry comprises establishments that sell security systems, such as burglar and fire alarms and locking devices. They also offer installation, repair and monitoring services of electronic security alarm systems. While the industry includes locksmiths, the locksmith segment isn't a primary focus of this report because it generates a relatively small portion of revenue.
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NAICS 56162 - Security Alarm Services in the US
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Strong changes in interest rates have affected demand from businesses. When interest rates are low, businesses are more willing to install new security alarm systems.
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The concentration of businesses varies depending on the urbanization of an area. Urban areas have a higher demand for security alarm services because of higher crime rates an...
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Many major security alarm services companies have diversified into related markets. These markets include home automation, energy management and healthcare.
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Adherence to regulations is crucial to maintaining a company's license and credibility. Failure to comply with regulations can result in penalties, fines and reputational dam...
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Profit rises when customer acquisition costs drop. Advancements in security systems make it less expensive to obtain new clients.
Including values and annual change:
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Key data sources in the US include:
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These sources include:
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The market size of the Security Alarm Services in the US industry in United States is $35.9bn in 2024.
There are 83,324 businesses in the Security Alarm Services in the US industry in United States, which has grown at a CAGR of 2.3 % between 2019 and 2024.
The market size of the Security Alarm Services in the US industry in United States has been growing at a CAGR of 0.3 % between 2019 and 2024.
Over the next five years, the Security Alarm Services in the US industry in United States is expected to grow.
The biggest companies operating in the Security Alarm Services market in United States are Adt Inc., Johnson Controls International Plc and Api Group Corporation
Residential security monitoring services and Nonresidential security monitoring services are part of the Security Alarm Services in the US industry.
The company holding the most market share in United States is Adt Inc..
The level of competition is moderate and increasing in the Security Alarm Services in the US industry in United States.