Security System Services NAICS 561621

        Security System Services

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Industry Summary

The 5,670 security systems service providers in the US design, sell, install, service, and monitor security alarm systems. Companies may install stand-alone systems or offer monitoring services. Customers include residential, commercial, educational, governmental, and industrial accounts.

Customer Attrition

Failure to retain customers is costly, as companies typically incur acquisition expenses and depend on payments over the term of a contract to recoup costs.

Technology Integration

Advances in technology help drive popularity for integrated security systems that combine multiple features, such as video surveillance, intruder detection, alarm systems, and home control.


Recent Developments

Jan 30, 2026 - Industry Wages Climbing on High Demand
  • Wages at security systems services are climbing as employers compete for scarce, specialized workers, with nonsupervisory employees earning an average of $37.88 an hour in November, up 4.4% from a year earlier, according to the US Bureau of Labor Statistics. The main driver is demand: companies and homeowners are spending more on surveillance, access control, and smart security systems, all of which require trained technicians and monitoring staff who are hard to replace. At the same time, the job has gotten more technical, pushing firms to pay a premium for workers with certifications and experience who might otherwise land in higher-paying tech or electrical roles. That mix of steady demand, tighter labor supply, and rising skill requirements helps explain why security systems wages have jumped 80.7% over the past decade and continue to outpace overall private-sector pay growth.
  • A new NerdWallet survey reveals that just over half of Americans (57%) have a home security system, and those who do say that it gives them peace of mind - 88% feel safer, and 85% call a “good” system essential. But it’s not all glowing: 28% of system owners regret the purchase. For the 43% of people without a system, cost is a major roadblock (33%) and many simply don’t think they need one (35%). Those who opt for professional monitoring cite fast emergency response (36%) and lower insurance premiums (23%), whereas DIY system users prioritize saving money (35%) and maintaining privacy (32%). At the same time, most homeowners (61%) only fix systems when they break, neglecting preventative maintenance. The NerdWallet survey of 2,000 US adults paints a picture of high demand in the market, but one where price sensitivity and mixed motivations leave room for more tailored offerings.
  • The cybersecurity workforce gap is widening, with 65% of organizations reporting unfilled roles, according to a new survey by the Information Systems Audit and Control Association. That shortage spans all levels, from junior analysts to senior experts, leaving teams struggling to cover essential functions. At the same time, 53% of companies say their cybersecurity budgets are underfunded, a slight improvement from 59% last year but still a major hurdle. The combination of too few people and tight budgets is forcing security teams to do more with less, often delaying projects and increasing the risk of missed threats. Many executives admitted that the lack of talent is already hurting their ability to monitor systems, respond to incidents, and adapt to fast-evolving risks. With demand for cyber skills continuing to surge, the survey makes clear that the talent pipeline isn’t keeping pace. Unless the gap is closed, organizations will remain vulnerable despite robust technological investment.
  • Fire watch guards, trained professionals who monitor properties for signs of fire, are an important but little known job within the security industry. The fire watch guards are mostly used when security and fire systems malfunction and leave a building unprotected. They are also used as supplemental to an electronic fire detection system, such as at construction sites that require round-the-clock monitoring to comply with legal safety requirements. In addition to construction, fire watch guards also patrol vacant buildings, private businesses, warehouses, education institutions, and government locations. Per the National Fire Protection Association, local fire departments responded to about 1.39 million fires in 2023 (the last year data is available) at a cost of $23 billion in property damage.

Industry Revenue

Security System Services


Industry Structure

Industry size & Structure

The average security systems services provider operates out of a single location, employs 21 workers, and generates $5.1 million annually.

    • The security systems services industry consists of about 5,760 firms that employ about 125,870 workers and generate about $29.6 billion annually.
    • The industry is concentrated at the top and fragmented at the bottom. The top four firms account for 34% of industry revenue. The top 50 firms account for 58% of industry revenue.
    • Large companies include Apollo Global (ADT) and Monitronics (Brinks Home Security). Large companies may be vertically-integrated and have international operations.
    • Estimated US household penetration of alarm systems is about 57%.
    • The industry includes national and regional chains, franchises, and independent operators.

                                    Industry Forecast

                                    Industry Forecast
                                    Security System Services Industry Growth
                                    Source: Vertical IQ and Inforum

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