The Global Home Security System Market was valued at USD 53.41 Billion in 2022 and is projected to reach USD 102.20 Billion by 2030, registering a CAGR of 8.04% for the forecast period 2023-2030.
Market Definition
A home security system or solution is essentially made up of several sensors or cameras connected to a central hub for home security. The door and window sensors, motion sensors, security cameras, and a controller to operate the entire system are all included in the home security system. A rise in security threats and hazards has led to a rise in demand for data protection technology, including computerized alarm sensors and CCTV cameras, among other things. The result is expected to be an increase in the global market. Rapid population growth and technological development have necessitated the development of more modern security systems that are cellphone-monitored from a distance. Thus, the development of intelligent buildings, home automation, service packaging, and security has benefited the home security sector. The growing trend of urbanization in both developed and developing nations, coupled with a steady increase in disposable income, is contributing to the favorable prominence of smart houses. It seems that these "smart homes" have full-featured home security systems and solutions, complete with surveillance cameras, gas detectors for safety, and fingerprint sensors for locks. In actuality, the availability of security systems is a major factor in people's preference for smart homes. For suppliers of home security systems and related services, this creates a sizable market.
Market Size:
- 2022: USD 53.41 Billion
- 2030: USD 102.20 Billion
- CAGR (2023-2030): 8.04%
Home Security System Market Dynamics
Drivers Propelling the Demand for Home Security Systems include:
The market for access control systems is expected to grow significantly :
Access control systems restrict entry to areas of a house, building, drawer, or other space that houses important documents, valuables, or private data. These automated solutions provide protection and access around the clock. Because entry control systems allow a designated individual to enter a home quickly and easily while recording and monitoring visitor movements, they are becoming increasingly popular in-home security applications. Furthermore, the majority of homeowners' access control systems only have a key-locking door handle and a deadbolt lock on the front and back doors of the home. However, toggle locks secure sliding glass doors and comparable doors, making them potentially more secure against intruders. Increasing the level of access control security in these areas can help to improve home security. Such incidents might make access control systems more necessary to improve home security. Doors from home security system manufacturers can be locked and unlocked using a variety of access control systems. Globally, people are using this feature for home security more and more. Home burglaries occur every 13 seconds, four times per minute, 240 times per hour, and more than 6,000 times per day, according to FBI data. It also states that one in three homes without security systems may become the victim of a burglary, as opposed to one in every 250 homes with security systems. Furthermore, several benefits have led to the widespread use of contemporary home security systems. The current generation of home security systems offers unparalleled connectivity, control, and accessibility, due to this factor fueling the growth of the Home Security System market.
For instance, in September 2022, according to Optex, Optex Co., Ltd. launched the FlipX STANDARD indoor passive security sensor. Optex’s indoor passive security sensor is a security device that communicates information about intruders to alarm and alert devices in rooms and corridors. It works by detecting the infrared radiation emitted by human bodies.
The emergence of the Internet of Things (IoT) and wireless technologies:
IoT connectivity is used by home security systems to provide remote monitoring and control. Users can view live video feeds, receive alerts, and control security devices from any location with an internet connection by using mobile apps or web interfaces to access their security systems. The Internet of Things makes it easier to integrate different smart devices into an ecosystem for home security. This comprises motion sensors, door/window sensors, smart locks, doorbell cameras, and smart cameras. These gadgets can speak with one another, offering a coordinated and all-encompassing security solution. Smart sensors and detectors in home security systems frequently use wireless technologies like Bluetooth, Z-Wave, and Zigbee. These sensors wirelessly communicate signals to the central hub or a user's mobile device to detect motion, smoke, carbon monoxide, and other threats. Real-time alerts and notifications can be sent to homeowners' smartphones or other devices by IoT-enabled home security systems. Instant alerts about possible security breaches are sent to users, enabling them to notify authorities or take immediate action. Cloud-based storage is frequently used by home security systems to store data and video footage. When it comes to reviewing or sharing footage, IoT connectivity promotes flexibility and convenience by allowing seamless access to stored information from a variety of devices. For home security systems, wireless technologies offer a scalable and adaptable infrastructure. Without requiring intricate rewiring, homeowners can simply add or remove devices, enabling customization and adaptability to changing security requirements, this factor driving the growth of the Home Security System market.
For instance, in November 2022, Semtech Corporation, a leading global supplier of high-performance analog and mixed-signal semiconductors and advanced algorithms, today announced that it has entered a strategic agreement with Amazon Web Services, Inc. (AWS) to license its LoRa Cloud global navigation satellite system (GNSS) geolocation services to help the AWS global developer community build asset tracking and monitoring solutions and connect Internet of Things (IoT) enabled devices, using LoRa Edge, to the Cloud.
Recent Developments
In April 2022, Resideo Technologies, Inc., a leading global provider of home comfort and security solutions and distributor of commercial and residential security and audio-visual products, today announced that it has completed the acquisition of First Alert, Inc., a leading provider of home safety products, from Newell Brands Inc. Based in Aurora, Illinois, First Alert is a leader in the home safety market with an omnichannel presence serving end users directly through retail and e-commerce channels and professional contractors through relationships with distributors and homebuilders.
In June 2023, ASSA ABLOY has signed an agreement to acquire JOTEC Service & Vertriebsges.mbh, a regional leading industrial door distributor and service company in Germany. "I am very pleased to welcome JOTEC into the ASSA ABLOY Group. The acquisition of JOTEC delivers on our strategy to reinforce our current offering within entrance automation,” says Nico Delvaux, President and CEO of ASSA ABLOY.
Restraint
High expenses for upkeep, installation, and operation:
The high initial installation costs of home security systems may discourage some homeowners from installing them. Customers place a high value on affordability, and if they think the initial outlay is excessive, it may prevent these systems from becoming widely used. Installing home security systems can be expensive, particularly if they're wired systems that might need to be professionally installed. It's possible that homeowners won't want to spend money on systems that require complicated installation procedures and extra costs. For home security systems to remain effective, frequent maintenance is frequently necessary. Constant upkeep expenses, such as servicing, battery replacements, and equipment updates, can raise the overall cost of ownership and decrease consumers' desire to invest in these kinds of systems. A lot of home security systems are linked to outside monitoring services, which usually come with a monthly cost. These ongoing expenses can mount up over time, and some customers might find them onerous, which would make them reluctant to sign long-term agreements. The total cost of ownership for home security system providers includes operational costs for connectivity, cloud storage for video, and system updates. These expenses might be transferred to customers, which might have an impact on market competitiveness and pricing policies. Price pressure may result from the home security market's intense competition. It could be difficult for providers to keep prices competitive while still paying for operations, maintenance, and installation. This may affect profit margins and impede the expansion of businesses in the industry. Customers may be reluctant to invest if they believe that the costs of home security systems do not match their perception of the product's value or advantages. Potential buyers base a lot of their decisions on their perceived return on investment, this factor hinders the growth of the Home Security System market.
For instance, in November 2023, according to Safewise, the cost of a home security system, monitoring cost is $8 to $60 per month, installation and activation cost is $0 to $200, maintenance cost under $10, and equipment cost up to $350.
Challenges
System Intricacy.
With an increasing number of separate devices linked together on a single platform, home security systems are growing more and more complicated. The primary design challenge in security systems is the integration of disparate devices, each with a different degree of compatibility, onto a single platform. Numerous sensors, actuators, and other wireless devices used by home security systems produce a lot of data. Data traffic is produced by the real-time control and monitoring that use the generated data. Furthermore, bottlenecks for smooth connectivity and data handling capacity are imposed by wireless sensor networks' hardware, computation power, and communication protocols. Extensive data processing and efficient data communication with all system components are essential to overcoming these obstacles.
Opportunities
Integrating deep learning and artificial intelligence (AI) into home security systems
AI has made it possible to integrate medical alert systems and automated health assessments with full-featured home security systems. In addition to the growing use of home security systems for video surveillance, hazard detection, and access control applications, home-based monitoring of the elderly and their cognitive and physical health is also gaining popularity. The AI-powered cognitive analysis collects and evaluates data about the occupant's activities and health. To guarantee security, it also examines each person's medical history, physiology, and behavioral patterns. A base station and wireless remotes, such as necklaces, bracelets, or belt clips, make up an in-home medical alert system. After analyzing user behavior, the remote devices identify the emergency and alert the base station. The necessary authorities are then informed of the situation by the base station. When children are left alone at home or require extra care due to a critical medical condition that already exists, the medical alert system can be quite useful. Incorporating a medical alert system into a home security system offers additional benefits. It can also be used to notify the monitoring station of other emergencies, like gas leaks, intrusions, and burglaries.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 53.41 Billion |
| Market Forecast in 2030 | USD 102.20 Billion |
| Compound Annual Growth Rate (CAGR) | 8.04 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Type, By Security, By System, By Service & By Region |
| By Type |
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| By Security |
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| By System |
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| By Service |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Home Security System Market
The Home Security System Market is segmented by type, security, system, service, and region.
By Type
The Independent Homes segment held the largest market share in 2022:
By Type is sub-segmented into Independent Homes, Condominiums/ Apartments. The Independent Homes segment accounted for the highest market share 60% in the global Home Security System market for 2022. Compared to apartments or shared housing, independent homes frequently offer more individualized security options. Homeowners can scale and select security systems according to the unique layout and security requirements of their individual properties. Being a homeowner typically requires a significant financial commitment over time. To safeguard their possessions and investments over time, homeowners are more inclined to put money into complete security systems for their standalone residences. Owners of standalone homes have more discretion over security choices than owners of multi-unit buildings. They can choose the kind of security system, what features it has, and how to install it, which increases the rate at which sophisticated and integrated solutions are adopted. Independent homes frequently have bigger outdoor areas and yards. Home security systems have a larger market share because homeowners prioritize security features like motion sensors, outdoor cameras, and smart lighting to improve the overall security of their property. Families commonly reside in independent homes, where safeguarding loved ones and belongings becomes paramount. Those who own homes are more likely to spend money on reliable security systems that offer complete protection and comfort.
On the other hand, the Condominiums/ Apartment segment has a significant market share over the forecast period, due to Individual homes typically have a lower population density than condominiums and apartments. The requirement for comprehensive security solutions to address the collective safety of residents is increased when multiple living units are located nearby within a shared space. Common areas, parking lots, and entryways are common features of multi-unit residential complexes. To guarantee the general safety and security of every resident, home security systems that monitor these common areas are essential. Common areas and entry points may be subject to limited control by residents of apartments and condominiums. Robust security systems, such as intercoms, surveillance cameras, and access control, facilitate efficient management and oversight of these shared areas.
By System
The video surveillance system segment was the leading segment in 2022:
By System, which is divided into a fire protection system, video surveillance system, access control system, entrance control system, and intruder alarm system. The video surveillance system segment accounted for the largest share of the global Home Security System market in 2022. The ability of a video surveillance system to provide security, monitoring, and analysis of suspicious person movements within a perimeter is one of its main advantages. The hardware components of video surveillance systems include cameras, monitors, servers, storage units, and other accessories. The hardware items that are currently on the market are both reasonably priced and cutting-edge in terms of technology. Body-worn or spy cameras, panoramic cameras, and high-definition (HD) cameras are some of the newest and most appealing trends in the video surveillance industry.
The access Control System segment is anticipated to register rapid growth in the forecast period, for a complete home security system, access control systems are essential. By controlling and keeping an eye on entry points, they add an extra degree of security to homes. Strong security solutions are in high demand due to growing concerns about home invasions, burglaries, and unauthorized access. These issues are successfully addressed by access control systems, which come equipped with features like keyless entry, biometric authentication, and smart locks. Smart home ecosystems and access control systems are frequently made to work together seamlessly. With the help of this integration, homeowners can now control access remotely via mobile apps, increasing convenience and control. The appeal of these systems is enhanced by ongoing developments in access control technologies, such as biometrics, facial recognition, and RFID (Radio-Frequency Identification). The newest technologies that provide improved security features entice consumers.
Regional Analysis
North America occupied the largest market share in 2022:
North America has the largest revenue market share 37% in 2022, To increase security and safety precautions, the area is leading the way in the implementation of access control systems. To give themselves a competitive edge over international rivals and grow their market shares in the access control systems industry, businesses operating in the US, Canada, and Mexico are sharpening their skills in this area and providing cutting-edge technologies and services. The North American mandatory fire safety and protection regulations have incentivized builders to incorporate fire prevention systems into their building structures. Smoke detectors, flame detectors, heat detectors, sprinklers, extinguishers, fire alarms, sirens, control panels and interfaces, fire analysis software, and many other systems are available from several fire protection systems and equipment manufacturers in this area.
On the other hand, Asia Pacific accounted for the significant share over the forecast period, The number of people relocating to urban areas is increasing, and the Asia Pacific region is experiencing rapid urbanization. Because urban residents are more likely to invest in home security measures, urbanization frequently increases demand for home security systems. There is more disposable income in the Asia Pacific region as a result of the middle class's population growth. Because of this, a greater number of homes can afford and are eager to invest in cutting-edge home security systems. As urbanization and economic development rise, homeowners are becoming more conscious of security issues. The demand for home security systems is fueled by this increased awareness, which also influences the market share in the area. Innovations and breakthroughs in technology are centered in the Asia Pacific region.
List of the prominent players in the Home Security System Market :
- ADT,
- Allegion,
- ASSA ABLOY,
- Control4 Corporation,
- Godrej,
- Hangzhou Hikvision Digital,
- Honeywell International,
- Johnson Controls,
- Legrand,
- Resideo Technology,
- Scout Security Schneider Electric,
- Stanley and others
Segmentation Analysis of the Home Security System Market
By Type
- Independent Homes
- Condominiums/ Apartments
- Professional-installed and Monitored
- Self-installed and Professionally Monitored
- Do-It-Yourself
- Fire Protection System
- Video Surveillance System
- Access Control System
- Entrance Control System
- Intruder Alarm System
- Security System Integration Services
- Remote Monitoring Services
- Fire Protection Services
- Video Surveillance Services
- Access Control Services
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Home Security System Market:
Globally, the COVID-19 pandemic has changed how people and businesses conduct their operations. Due to the pandemic, people are compelled to stay indoors more often, and consumers are making home improvements. Naturally, this has helped a lot of smart home and residential security solution providers that offer their products and services to the public. Customers are searching for ways to protect themselves and their loved ones more effectively. More people may use smart home and security technologies. Conventional players are also making efforts to offer related security device sales as part of their offerings. While networked cameras, video doorbells, and video surveillance systems have seen early success, suppliers are aiming for sales in all device categories, including energy and convenience. 2020 saw a significant decline in the global home security market share due to the COVID-19 pandemic. 2020 saw a 5–10% drop in global sales as a result of manufacturing disruptions and the temporary closure of non-essential transportation. Due to supply chain disruptions in China, the demand for home security products has decreased, making COVID-19 a highly detrimental influence on major markets like the US and China. Some of the factors affecting China's demand were the decline in the number of new construction projects and the closure of manufacturing facilities.
