NAICS 561621 Quarterly Industry Report
Security Systems Services (except Locksmiths)
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 561621Sector: Administrative and Support and Waste Management and Remediation Services (56)Updated: Q1 2026
About This Report
This industry profile for Security Systems Services (NAICS 561621) draws on data from the Bureau of Labor Statistics[6], U.S. Census Bureau, and SBA size standards database[7]. Published by Fair Market Value and updated quarterly, it provides valuation professionals, security industry analysts, and business brokers with current market data. The editorial analysis reflects the independent assessment of FairMarketValue.com's research team, with all quantitative claims sourced to publicly verifiable databases.
Industry Snapshot
Key metrics for the security systems services (except locksmiths) industry.
Share of Administrative and Support and Waste Management and Remediation Services
1.6%
By establishment count, 2022 Census[2]
NAICS Sector
56
Administrative and Support and Waste Management and Remediation Services
Industry Definition & Overview
Security Systems Services (NAICS 561621) encompasses establishments primarily engaged in selling security alarm systems, such as burglar and fire alarms, along with installation, repair, or monitoring services, or remote monitoring of electronic security alarm systems per the U.S. Census Bureau[5]. This classification excludes locksmiths, which fall under NAICS 561622.
About 5,308 establishments employ roughly 132,281 workers, with average weekly wages of $1,502 per the Bureau of Labor Statistics[6]. The industry serves residential, commercial, and industrial clients through a combination of equipment sales, professional installation, ongoing maintenance, and 24/7 remote monitoring. Recurring monthly monitoring contracts provide stable revenue that distinguishes this sector from one-time installation businesses. Major national providers compete alongside thousands of regional and local installers.
Technology has transformed the market. AI-driven analytics, IoT-connected sensors, cloud-based monitoring platforms, and mobile app controls have become standard offerings. Smart home integration drives residential growth, while commercial clients demand increasingly sophisticated video surveillance and access control systems. Per the SBA Table of Size Standards[7], the size standard is $25.0 million in average annual receipts. Licensing requirements vary by state; 33 states require some form of licensing for low-voltage security system installation, creating compliance complexity for firms operating across multiple jurisdictions. Federal government contracts represent a growing revenue source for qualified installers.
What's Included in This Industry
- Burglar and fire alarm system sales and installation
- Security alarm system repair and maintenance
- Remote monitoring of electronic security systems
- 24/7 alarm response and central station monitoring
- Access control system installation and programming
- Video surveillance equipment sales and installation
- System design and security consultation
- System upgrades and component replacement
- Testing and certification of installed systems
- Smart home security integration services
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Sector | Administrative and Support and Waste Management and Remediation Services | 56 |
| Subsector | Administrative and Support Services | 561 |
| Industry Group | Investigation and Security Services | 5616 |
| NAICS Industry | Security Systems Services | 56162 |
| National Industry | Security Systems Services (except Locksmiths) | 561621 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 561622 | Locksmiths | Locksmiths install and service mechanical and electronic locking devices, providing complementary physical security that pairs with alarm systems for layered property protection |
| 561612 | Security Guards and Patrol Services | Security Guards and Patrol Services provide human security personnel that respond to alarm activations and supplement electronic monitoring with physical presence at protected sites |
| 561611 | Investigation and Personal Background Check Services | Investigation Services gather intelligence and conduct forensic analysis that complements alarm monitoring, particularly when security breaches require post-incident investigation |
| 561613 | Armored Car Services | Armored Car Services protect valuables in transit from facilities secured by alarm systems, connecting electronic building security with mobile asset protection operations |
| 423690 | Other Electronic Parts and Equipment Merchant Wholesalers | Other Electronic Parts Wholesalers distribute alarm panels, cameras, sensors, and access control components to security system installation firms for project deployment |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | California | 10.6% | 743 |
| 2 | Florida | 9.7% | 686 |
| 3 | Texas | 9.3% | 658 |
| 4 | New York | 7.6% | 537 |
| 5 | New Jersey | 3.7% | 262 |
| 6 | Pennsylvania | 3.6% | 252 |
| 7 | Georgia | 3.4% | 241 |
| 8 | Ohio | 2.9% | 204 |
| 9 | North Carolina | 2.7% | 192 |
| 10 | Illinois | 2.7% | 189 |
% Of Establishments
0%
11%
Source: County Business Patterns, U.S. Census Bureau[3]
SBA Lending Summary
840
Total SBA Loans
$335.1M
Total Loan Volume
$399K
Average Loan Size
10 yrs
Average Loan Term
10.22%
Average Interest Rate
6,520
Jobs Supported
Source: SBA 7(a) Program Data, U.S. Small Business Administration — FY 2025[4]
Key Insight: Per the SBA Table of Size Standards[7], Security Systems Services (NAICS 561621) has a size standard of $25.0 million in average annual receipts for federal contracting purposes. SBA 7(a) loans[8] support monitoring center buildout, vehicle fleets, installation equipment, and working capital for qualifying firms. The recurring revenue model from monthly monitoring contracts makes security systems firms attractive SBA loan candidates due to predictable cash flow. Additionally, 504/CDC loans[9] provide long-term, fixed-rate financing for major fixed assets such as real estate and equipment.
Top SBA Lenders
| # | Lender | Loans | Volume | Avg Loan |
|---|---|---|---|---|
| 1 | JPMorgan Chase Bank, National Association | 56 | $43.4M | $774K |
| 2 | Zions Bank, A Division of | 40 | $34.4M | $860K |
| 3 | Pinnacle Bank | 8 | $26.7M | $3.3M |
| 4 | Northeast Bank | 136 | $22.4M | $164K |
| 5 | Regions Bank | 16 | $21.2M | $1.3M |
Frequently Asked Questions
Common questions about this industry.
What types of businesses operate as security systems services?
Firms range from local alarm installers to major national monitoring companies. About 5,308 establishments employ roughly 132,281 workers per the U.S. Census Bureau[5]. Business models include equipment-only sales, installation with monitoring contracts, and monitoring-only services for self-installed systems.
How is the security systems industry structured?
Revenue comes from equipment sales, installation fees, and recurring monthly monitoring contracts. Average weekly wages reach $1,502 per the Bureau of Labor Statistics[6]. Monthly monitoring fees typically range from $20 to $60 for residential and $50 to $200+ for commercial accounts, creating predictable recurring revenue.
What is the SBA size standard for Security Systems Services?
Per the SBA Table of Size Standards[7], NAICS 561621 has a size standard of $25.0 million in average annual receipts. This determines eligibility for SBA loans, federal contracting set-asides, and small business programs.
What NAICS codes are related to security systems services?
Related codes include NAICS 561622 (Locksmiths), NAICS 561612 (Security Guards), NAICS 561611 (Investigation), NAICS 561613 (Armored Car), and NAICS 238210 (Electrical Contractors) per the U.S. Census Bureau[5]. Each provides complementary security functions.
Which industries use security systems services most?
Residential homeowners, commercial property managers, retail chains, healthcare facilities, schools, banks, and government buildings represent the core client base. Smart home adoption has accelerated residential demand for connected alarm and camera systems.
What activities are included in NAICS 561621?
Core activities include alarm system sales, installation, repair, remote monitoring, access control systems, video surveillance, system design, testing, certification, and smart home integration per the U.S. Census Bureau[5].
Can security systems businesses get SBA loans?
Yes, firms meeting the $25.0 million size standard qualify for SBA 7(a) loans[8] covering monitoring centers, vehicle fleets, equipment inventory, and working capital. The recurring revenue model from monitoring contracts makes these firms attractive loan candidates.
Which states have the highest concentration of security systems services?
California, Texas, Florida, and New York lead in security systems employment per the Bureau of Labor Statistics[6]. States with high property values and dense commercial real estate markets generate the strongest demand for professional alarm installation and monitoring.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Small Business Administration, SBA 7(a) Loan Program Data data.sba.gov
- [5]U.S. Census Bureau census.gov
- [6]Bureau of Labor Statistics bls.gov
- [7]SBA Table of Size Standards sba.gov
- [8]SBA 7(a) loans sba.gov
- [9]504/CDC loans sba.gov
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