The Rising Competition: Security Dealers Facing DIY Systems Challenge in 2026

In a rapidly evolving market, security dealers find themselves grappling with intensified competition, driven primarily by the surge in consumer interest for do-it-yourself (DIY) security systems and standalone video devices. Recent research from Parks Associates highlights that an alarming 74% of security dealers have experienced a dip in sales attributed to the growing appeal of DIY solutions. This figure marks a significant rise from the 51% reported back in 2023, indicating that the landscape of home security is shifting dramatically.

The trend towards DIY systems is reshaping strategies for security dealers. In a recent survey titled Security Dealer Perspectives: Views from the Front Line, which surveyed 200 security professionals across the United States, it was found that consumers are increasingly opting to purchase their systems online, with 39% acquiring their security setups through this channel in 2025, up from 35% in 2023. This transition reflects a broader consumer preference for ease and accessibility.

Recognizing these shifting consumer preferences, dealers are adapting their sales strategies to meet the evolving demand. For instance, about 36% of dealers now offer online sales options, a notable increase from 24% just two years prior. These efforts are aimed at catering to a customer base that includes renters, younger households, and budget-conscious homeowners who are looking for affordable, flexible, and even portable security options.

Moreover, the survey indicates that price and reliability remain paramount considerations for security dealers when selecting a central monitoring station. Interestingly, as consumers become more discerning, demand for advanced technology features is also on the rise, including capabilities like ASAP-to-PSAP integration and AI-enabled controls that enhance the functionality of security systems.

In addition to the competitive pressures brought on by DIY systems, the research reveals that commercial sales are becoming increasingly crucial for security dealers. A significant 70% of respondents stated that sales from commercial clients are growing within their business model. This pivot emphasizes the necessity for dealers to diversify their offerings beyond residential solutions to sustain and bolster their bottom line.

However, with the increasing number of service options, there remains a perceptible gap between basic and fully featured service packages, estimated at about $31 per month. This pricing disparity highlights the competitive nature of the market, where 82% of dealers identified price as a critical factor in selecting monitoring stations.

To address these complexities, many dealers are seeking partnerships with reputable monitoring providers. Notable names in the industry include ADT, COPS Monitoring, Rapid Response Monitoring, Affiliated Monitoring, Securitas Technology, and CMS. Furthermore, control platform providers such as Johnson Controls, Resideo, Bosch, Qolsys, DMP, Nice, and Control4 continue to be integral in enhancing the dealer ecosystem.

Recognizing the need to stay relevant amidst these challenges, Parks Associates will hold its 30th annual CONNECTIONS™ Conference from May 5-7, 2026, in Santa Clara, California. This event serves as a platform to share insights, showcase the latest data, and discuss the implications of these industry shifts with leaders across security, broadband, and smart home sectors.

As the landscape of home security continues to evolve, key players are urged to not only adapt to the rise of DIY systems but also innovate in their offerings to align with consumer expectations for flexibility, affordability, and robust protection. As noted by Jennifer Kent, SVP and Principal Analyst at Parks Associates, the time for strategic adaptation is now, as 2026 promises to be pivotal for the home security industry, especially with the rise of savvy and cost-conscious consumers demanding more from their security solutions.