For the sake of not being misleading, the central station alarm monitoring industry saw its first reduction in revenue this year — the first reduction in a long time — but the headwind of the pandemic on the economy doesn't trounce the industry's trajectory towards success. In fact, alarm monitoring companies that take innovation seriously, should be able to reap the benefits of an ever interconnected world.
The Central Station Alarm Monitoring Industry By The Numbers
According to Parks Associates, revenue in the professional monitoring industry will decrease from 15.98 billion to 15.74 billion (estimated) by the end of 2020. With that being said, revenue is still expected to grow another three billion by 2024, at a rate of 5.1 CAGR.
What Caused The Slowdown
The easy answer is COVID-19. The ripple effects of quarantining and economic downturn had a huge impact on one of the tried-and-true sales tactics in the security industry: door-to-door sales. With door-to-door sales essentially halted (and still frowned upon in some cities and areas with restrictions) companies that didn’t look to optimize their sales processes found themselves in more trouble than most.
The current slowdown is a headwind, and the great thing about headwinds are they can be navigated, fought through, and they ultimately don’t last forever. With some reshaping of ideas, ingenuity and innovation, revenue, especially in the smart home monitoring sector (which accounts for about 1.2 billion) will see an increase. Some of the services that have incredible potential for growth in the industry are:
- Smart home automation and control
- Video services including verification and cloud storage
The world is becoming more connected — you can now turn your sprinklers on to water your grass for goodness sakes. Making integrations into smart home monitoring is a key factor to survive this ever changing market. Speaking of surviving, other ways to stay agile as the market shifts:
- Look how to advance and change your sales process
- Adding direct to consumer options along with B2B
- Digital help with installation, including video chat
Sure, there was a slow down in 2020, but there are ways to push through, especially with the help of AvantGuard Monitoring Centers. If your central station is in trouble, whether it be with staffing due to COVID-19, or outdated technology, AvantGuard hybrid monitoring solutions can help keep your central station operational, while we do the heavy lifting. Remember, there are opportunities for success everywhere, you just have to be willing to be innovative to push through.