Security System Services NAICS 561621

        Security System Services

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Industry Summary

The 5,800 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

Mar 5, 2025 - Healthcare and SMBs the Most Common Cyber Crime Targets
  • Small and medium-sized businesses (SMBs) and healthcare companies are among the most targeted cyber crime victims, according to the 2025 Annual Cyber Threat Report by security firm SonicWall. Ransomware attacks in particular are on the rise - up 8% in North America last year - aided by more sophisticated AI and automotion technology. About 95% of all healthcare security breaches come from ransomware, with the average ransom payment topping $850,000 and costing $4.9 million in downtime and recovery. SonicWall estimates that 198 million Americans have been impacted by healthcare cyber attacks. On the SMB side, limited budgets and a slowness to adapt to threats has increased vulnerabilities to cloud-based attacks, ransomware, and business email compromise (the last is the most common SMB cyber security threat).
  • Security system services insiders expect AI to play a significant role in industry advancements in 2025. Key innovations include leveraging AI to integrate remote video monitoring (RVM) systems and analytics with access control, alarms, and environmental sensors to provide more comprehensive security services. Current capabilities of AI-enabled systems include distinguishing between human motion, vehicle movement, and movements caused by environmental factors. The next advancements in AI-driven systems will be determining how to respond to what’s been detected by RMV systems, such as providing a vehicle’s color or a description of a suspect’s clothing. Machine learning models are expected to refine these capabilities over time, including analyzing outcomes, to improve future responses and deterrence.
  • Incidents of shoplifting appear to be on the rise, according to two studies released in November by the Council on Criminal Justice (CCJ). However, due to different data sources – two within the FBI – getting accurate data is challenging, according to reporting by Retail Dive. In the first half of 2024, shoplifting in 23 US metropolitan areas increased 24% compared to the same period in 2023. FBI data shows conflicting pictures of the state of shoplifting in the US. The Bureau’s Statistics from the Summary Reporting System suggest current shoplifting rates are about even with 2019 levels. However, the FBI’s National Incident-Based Reporting System (NIBRS) shows that shoplifting has risen 93% since 2019. The CCJ notes that the NIBRS is the newer system, and more agencies are beginning to report into it, which could be spiking the numbers. The CCJ suggests that the Summary Reporting System is likely the most accurate measure of shoplifting activity for now.
  • The recent What Home Buyers Really Want Study by the National Association of Home Builders highlights some security and energy efficiency home technologies that are most attractive to prospective home buyers. Study participants were given a list of 19 technology features and were asked to rate each as essential, desirable, indifferent, or do not want. Some of the top security features most desired by prospective homeowners included security cameras (76% of buyers ranking desirable or essential), video doorbells (74%), wireless home security systems (70%), lighting control systems (63%), and wired home security system (61%).

Industry Revenue

Security System Services


Industry Structure

Industry size & Structure

The average security systems services provider operates out of a single location, employs 21-22 workers, and generates $4-5 million annually.

    • The security systems services industry consists of about 5,800 firms that employ about 125,000 workers and generate about $28 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 50%.
    • 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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