MarketsandMarkets valued the global home security systems market at $40.66 billion in 2017 and expects it to reach $74.75 billion by 2023, at a CAGR of 10.4 percent from 2018 to 2023.
MarketsandMarkets segmented the market into four geographies: the Americas, Europe, Asia-Pacific, and the rest of the world.
In 2017, the Americas geography was about $17.53 billion that year. By 2023, Marketsandmarkets expects that the Americas market will reach about $30.88 billion by 2023, at a CAGR of around 9.63 percent.
The Americas, in 2017, was the largest geography for home security systems, with about 43.1 percent of the market share, Vaibhav Chaudhari, senior analyst in the company’s semiconductor and electronics practice, told SSN. “In [the] Americas region, Canada is expected to be the fastest growing market, with around 11.63 percentage of CAGR,” he added. “Out of the four [main] geographies, Asia-Pacific would be the fastest growing market, … around 12 percent of CAGR.”
MarketsandMarkets examined a range of different product types, including fire detection, video surveillance, access control systems and intruder alarms. “Currently, the video surveillance segment is the largest segment, and the fastest growing segment currently is the access control system,” Chaudhari said.
MarketsandMarkets examined main factors driving growth for the home security system market, Rupesh Yelhekar, company research analyst, told Security Systems News. “The major ones that we have located are technology developments in IoT and the wireless connectivity.”
Customer awareness has been an increasing factor for the market, Yelhekar added, “Because a lot of people from across the globe started acknowledging the importance of home security systems.”
He continued, “There is a major trend among the different types of devices in the home security system, that is: do-it-yourself, DIY home security systems. This particular device is very affordable in the market and people who are looking for the affordable security solutions are opting for this.”
The report covers three categories of systems: professionally installed and professionally monitored, self installed and professionally monitored system, and DIY installed and self monitored.
The DIY market is expected to grow “at the highest CAGR of these three types,” Chaudhari said, adding that the CAGR for this segment will be around 30.86 percent.
In 2017, the DIY market share was around 4.3 percent, while professionally installed and professionally monitored systems made up around 90 percent of the market, he said.
MarketsandMarkets has identified some trends specific to the North American market segment, such as the participation of telecom and insurance companies encouraging home security systems. Comcast is one company that MarketsandMarkets highlighted, for its Xfinity brand, which sells home security systems, Yelhekar said.
“We have observed that [some] insurance companies are offering attractive discounts to the house owners for the home security systems,” Yelhekar said. He cited the instance where FrontPoint, a provider of residential security, partnered with American Family Insurance in October 2017.
Increasing system complexity is a current challenge for the integrator as well as the end user, Chaudhari said, caused by advanced features and new security threats.
Some of the key vendors in this space are Johnson Controls and Tyco, Honeywell, ADT, and ASSA ABLOY, the research firm noted.