Home Security System Market

The global home security system market size was valued at around USD 61.62 Billion in 2022 and is expected to reach around USD 126.29 Billion by 2031, expanding at a CAGR of 8.3% during the forecast period, 2023–2031. The growth of the market is attributed to rising awareness regarding home security systems and the emergence of wireless technologies.

Home security systems are microprocessor-based and perform a wide range of duties while providing a user-friendly interface. In today's world, the Internet of Things has a huge influence on home security systems. Integrated electronic gadgets are designed to keep robbers and unwelcome intruders out of the house. The developments in technology are paving the way for home security solutions to create extensive growth possibilities for market players.

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Home security system consists of software and hardware technologies that are designed to detect an intrusion or unauthorized entrance. It is able to function even in the occurrence of a power loss and warns of potential environmental hazards such as carbon monoxide poisoning, flooding, and fire. Smart home alarm systems that are Z-Wave compatible use Wi-Fi to monitor homes via voice recognition and panoramic video. At the moment, Google Assistant and Amazon Alexa are compatible with home security solutions. Several firms are releasing solutions with better security qualities for monitoring with the assistance of IoT integration in home security systems.

The Impact of Artificial Intelligence in the Home Security System Market

Artificial intelligence (AI) has a significant impact on the smart home security market. The revolutionizing AI is helping home security solutions develop more advanced features including motion detection which differentiates between a driving car, an animal moving past the camera, or any unfamiliar person trying to enter through the door. Google Nest Cam IQ and other systems use AI to provide facial recognition features. These features in security cameras enable homeowners to respond quickly to any threats.

Moreover, the built-in AI alarm system uses machine learning (ML) to learn when the user is leaving the house and they are returning to ensure enhanced security. This pattern helps users identify if any unusual activities are happening then it informs users through an alarm system. Companies including ADT and Honeywell are integrating AI in their alarm systems, which makes it more intuitive.  

The COVID-19 pandemic had a significant influence on the global home security systems market. Manufacturing delays and the temporary suspension of non-essential transportation caused a drop in sales of the home security systems market. Larger Chinese home security system manufacturers, for instance, are located in Hubei province, the pandemic's origin, hurting local vendors such as Hikvision, ZKTeco, and Dahua with labor shortages and production bottlenecks across the nation. However, research from the Electronic Security Association (ESA), indicates growth over the past three years, with 31% of homes now having professionally monitored security systems.

Home Security System Market Dynamics 

Major Drivers

Emergence of the Internet of Things and wireless technologies is expected to drive the market. The integration of the Internet of Things (IoT) in smart home security enables users to receive alerts of attempted access and helps to identify visitors without unlocking the door.

• For instance, in March 2023 iENSO, the world’s leading supplier of intelligent and connected embedded vision platforms, launched its Ambarella-based iVS-CV22 and iVS-CV28P cameras to support IoT and surveillance applications. The iVS-CV22 is the Ambarella CV22-based camera platform designed for applications requiring greater amounts of processing power, including commercial surveillance, construction uses, and others.

Increasing criminal records are projected to propel the market during the forecast period. The rising number of criminal activities is convincing users to get home security cameras, which sometimes help crime investigators solve crimes. For instance, in 2021, Ring, an Amazon-owned brand partnered with over 2000 police and fire departments across the US, which allow police to request access to user’s video footage which is expected to help in investigations.

Existing Restraints

High cost associated with the hardware, software, and services is anticipated to hinder the market. The implementation of home security cameras including labor and multiple product applications comes expensive. Moreover, the risk of cyberattacks is expected to restrain the market in the coming years. The number of cybercrimes is rapidly increasing which enables attackers to control the devices, listen, and watch live feeds, which is expected to hamper the market.

Emerging Opportunities

Advancements in technology and deep learning in home security systems are projected to create lucrative opportunities for market players. The 360-degree views and facial recognition feature along with the integration of smartphone applications to monitor the places when not around are expected to create immense growth opportunities for the market players. Furthermore, the voice control feature allows hands-free control in home security cameras and their related systems with the integration of AI and natural language processing (NLP).

Scope of Home Security System Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Home Security System Market Segment Insights

Type of System Segment Analysis

On the basis of type of system, the home security system market is segmented into alarm system, fire protection system, access control system, and video surveillance systems. The video surveillance system segment is projected to expand at a considerable CAGR during the forecast period. Video surveillance system offers monitoring, security, and analysis of suspicious movement of persons. It enhances the security of users' premises 24/7 and serves as a powerful deterrent to potential criminals, protecting the safety of an organization's employees.

The access control system segment is anticipated to account for a major market share during the forecast period, owing to rising demand for risk and security management. Access control systems eliminate the hassle of using traditional keys and keep track of all activity.

Component Segment Analysis

Based on component, the market is divided into software, hardware, and services. The hardware segment is further classified into security cameras, fire sprinklers, electric locks, window sensors, door sensors, and other hardware.

The hardware segment is expected to hold a significant share of the market in the coming years, as hardware components are cost-effective and technologically advanced. The rapidly growing use cases of electric door locks to replace traditional home security features are expected to drive the segment.

• For instance, in July 2022, AlfredCamera, a home security mobile application provider, launched its first security camera, AlfredCam. The company is expanding its service offerings from home security software to hardware devices. The company aims to be a leader in the one-stop security solution that caters to the needs of its customers.

Home Type Segment Analysis 

In terms of home type, the market is bifurcated into apartments and independent homes. The apartments segment is expected to dominate the market during the forecast period. Apartments have more security features to help keep unwanted incidents away including attempts of breaking-in and other security-related concerns. Large apartments in comparison to the smaller ones need more security alternatives including complete doors with sensors, entry sensors, security cameras, and others.

• For instance, in June 2023, Vivint launched a new smart lighting kit that is easy to deploy with its smart home security platform to provide extra security for its customers. The company demonstrated to us their new Vivint Smart Lighting system. This new smart lighting product is designed to make homes safer and more sustainable with a well-wireless Internet connection.

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Security Segment Analysis

Based on security, the global market is trifurcated into self-installed and professionally monitored, Do-It-Yourself (DIY), and professionally-installed and monitored. The Do-It-Yourself (DIY) segment is expected to dominate the market during the projection period. People nowadays are more aware of taking home protection activities in their hands, DIY security cameras come at a reasonable cost which is why the demand for DIY cameras is increasing. These cameras come wireless and are easy to carry, unlike wired or professional cameras. The joint ventures between companies to launch DIY cameras for advanced customization options are contributing to segment growth.

• For instance, in March 2023, ADT and Google's joint smart home security system launched for DIY camera users. The company has launched the ADT Self Setup so customers are able to customize their ideal smart home security setup for their apartments.

Distribution Channel Segment Analysis 

On the basis of distribution channel, the market is segmented into offline and online. The online segment is expected to hold a key share of the market during the forecast. The wide use of Wi-Fi-enabled cameras that run through an application allows users to control it remotely. Moreover, the cloud recording feature enables users to view footage from anywhere with the help of an internet connection. Thus, the segment growth is attributed to the evolving features of smart security cameras.  

• For instance, in June 2023, SimpliSafe, a home security system company, released the 24/7 live guard protection and the Smart Alarm Wireless Indoor Security Camera. The industry-first professional monitoring feature is enabled by the new Smart Alarm Indoor Camera. It is able to stop crime in real time by allowing monitoring agents to see and speak directly with intruders.

Regional Analysis

In terms of region, the home security system market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the forecast period, owing to increasing awareness about surveillance and theft-related security concerns. The usage rate of surveillance cameras in the US is around 19% owing to a rise in the crime rates in neighbourhoods. The rise in the number of criminal activities has led to the rapid adoption of security cameras in households in America.

• For instance, nearly 38% of American adults deployed surveillance cameras to monitor delivery workers in 2022, similarly 29% installed cameras to check on their kids and pets. Thus, with the increasing adoption of security cameras, the market is expected to welcome immense growth in the region.

The market in Asia Pacific is anticipated to expand rapidly during the forecast period. The growing number of criminal activities is driving the market in the region. Countries including Vietnam, Indonesia, and other South Asian countries are susceptible to burglary and theft activities which leads to an increasing demand for smart home security camera products. Furthermore, the rapid expansion of IoT systems, cost-cutting measures made possible by home automation systems, and increasing product ranges by manufacturers are all factors contributing to the market growth.

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Segments

The global home security system market has been segmented on the basis of

Type of System

• Alarm System
• Fire Protection System
• Access Control System
• Video Surveillance System

Component

• Software
• Hardware
• Services

Home Type 

• Apartment
• Independent Homes

Region

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

Key Player

• Bosch Service Solutions GmbH
• Vivint, Inc.
• Honeywell International Inc.
• Johnson Controls.
• Nortek Air Management.
• Schneider Electric
• Scout Security Inc
• SimpliSafe, Inc.
• Securitas Technology
• Visonic
• ADT.
• ASSA ABLOY

Competitive Landscape

Key players competing in the global home security system market include Bosch Service Solutions GmbH; Vivint, Inc.; Honeywell International Inc.; Johnson Controls.; Nortek Air Management.; Schneider Electric; Scout Security Inc; SimpliSafe, Inc.; Securitas Technology; Visonic; ADT.; and ASSA ABLOY. Key players are prioritizing product launching with the addition of new technology. 

• In March 2023, the global leader for smart, healthy, and sustainable buildings, Johnson Controls released the new IQ4 NS (No Screen) Security and Smart Home System. The new screen-free system provides the same quality and reliability customers expect from the IQ Panel 4 platform. The IQ4 NS allows users to use the powerful and robust feature set directly from their smart devices for added convenience and cost savings.

• In October 2022, ASSA ABLOY acquired Bird Home Automation GmbH, a German manufacturer of high-quality IP door intercoms for single and multi-family buildings, for indoor station or smartphone control, marketed under the trademark DoorBird. This acquisition focuses on supporting DoorBird's effort to accelerate its growth in the Smart Residential segment by continuing its journey as a leader in home security.

•  In July 2022, Selective Insurance partnered with SimpliSafe, a maker of top-quality home security systems, to offer eligible Selective homeowner policyholders comprehensive and advanced home security technology and home monitoring capabilities. The partnership is expected to help protect Selective's homeowner policyholders against some of the most common home hazards, including theft, fire, and water damage