Residential Security Market Share, Size & Trends Report 2031

Report Description

Residential Security Market Outlook

The global residential security market size was USD 36.9 Bn in 2022 and is likely to reach USD 84.2 Bn by 2031, at a CAGR of 10.1% during the forecast period, 2023-2031. The market growth is attributed to the rising demand for residential security devices as the burglary rate is growing rapidly across the globe and the demand for smart homes is rapidly growing in developing countries. 

A residential security system is a network of physical and electronic components that work together to keep a home safe. Residential security systems operate on the same fundamental idea of securing a house's entrance points such as doors & windows and the interior from fire and other threats.

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Security system components vary widely from system to system, with some firms using only sensors while others use all of these and more. All of the parts are connected to a base station in the majority of home security systems. They establish a connection with a smartphone app, which enables monitoring and managing everything remotely. Most devices are linked to phones via Bluetooth, Wi-Fi, or cellular technology. In the event of a power loss, other systems opt to include a landline or battery backup.

Residential Security Market Dynamics

What Drives Residential Security Market?

• The emergence of wireless technologies and the Internet of Things (IoT)

IoT-based security systems guarantee security by sending users prompt notifications. Smart sensing tells the user when it notices variations in motion, heat, or sound. IoT increases the functionality of devices by making a lot of high-quality data available. For instance, the usage of HD cameras, infrared, and night vision surveillance systems ensures the availability of details of every event.

When there is an actual movement, motion activation captures and transmits information. Devices for digital video recording (DVR) make it possible to select a specific event's clip from the whole recording for a specific date and time. As a result, the development of IoT devices and efficient wireless communication is projected to accelerate the adoption of residential security systems with flexible security features.

• Increase in Burglary and Crime Rates

The demand for residential security systems has increased due to the rise in the rate of accidents and crime in recent years. According to the US Department of Justice, around 2.5 million burglaries are committed every year in the US. The high demand for security systems that identify smoke and fire, criminal activity, and provide assistance in alarming any medical situations are expected to help the market gain significant momentum which results in further market growth during the forecast period.

• Growth in the use of residential security systems

Installation of fire sprinklers and extinguishers is becoming a common practice in commercial and residential buildings. High-quality fire sprinklers prevent the risks early in their early stages, encouraging residents to install security systems. There are numerous applications of residential security systems that include live streaming to keep an eye on children or pets, which are expected to fuel the market in the coming years. Other benefits of installing residential security include accessibility, operational simplicity, and ease of recovering residential insurance policies.

• Rise in urbanization and disposable income

Rising urbanization, growing population, and increasing preference for using smart devices drive the market. The convenience of life in developed nations has been brought up due to increasing urbanization and industrialization. Growing disposable income is encouraging people to install high-quality residential security systems to feel safe, which is expected to drive the market. The value of the residential property also increases with the residential security systems.

What Restraints Residential Security Market?

• High costs associated with maintenance, installation, and operational

The price of hardware, software, and services needed to establish a security system is having an impact on how many people choose to use residential security solutions. The upfront installation cost for a professionally installed system is high due to the high cost of hardware and consultancy fees.

These systems require high ownership costs, as they need regular maintenance and require subscription payments and replacement in the event of damage. Additionally, software equipped with extensive analytics functions is expensive, which increases a system's overall cost.

• System complexity

Residential security systems are becoming increasingly complicated, as unique gadgets are connected to a single platform. The main design flaw in security systems is the integration of several devices, with varying degrees of compatibility, on a single platform.

A broad variety of sensors, actuators, and other wireless devices are used in residential security systems, producing a lot of data. Data traffic is produced by real-time monitoring and control using the created data. Additionally, wireless sensor networks' communication protocols, hardware, and processing resources limit data-handling capacity and smooth connectivity.

What are the Opportunities for Residential Security Market?

• Increase in adoption of artificial intelligence (AI) and machine learning

The rising use of artificial intelligence (AI) is creating opportunities in the market. Additionally, AI combined with machine learning is able to decrease false alarms, enhance the performance of anomaly detection and video analytics, and enhance the capabilities of video verification and monitoring. This combination of security and monitoring systems attracts additional consumers, which is projected to propel the market in the coming years.

• Advancement in Residential Security Systems

Companies are increasingly adding attractive features and top-notch controls to residential security systems. Advanced residential security systems drive a lot of attention from people due to the fixed technical issues, refined technology, and smart features such as managing the thermostat, air conditioning, ventilation, and lighting, which results in an increase in demand for security systems.

Modern residential security operates with little energy use while tracking the overall energy consumption, which is a concern for developed countries searching for ways to save energy. Such attractive characteristics have prompted developed economies to encourage citizens to install residential security advanced systems. The demand for residential security is increasing due to the miniaturization of sensors.

Scope of Residential Security Market Report

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

Residential Security Market Segmental Outlook

What Key Factors Contribute to the Significant Expansion of the Product Type Segment?

In terms of product types, the residential security market is segmented into smart locks, security cameras, fire sprinklers & extinguishers, sensors, security alarms, and others. The security cameras segment dominated the market in 2022 and the demand for security cameras is rapidly increasing as these are most commonly used and act as a strong deterrence to criminals and those who engage in illegal acts.

CCTV systems are expected to be complemented by other digital technologies namely, Internet Protocol CCTV to produce autonomous and adaptive surveillance mechanisms, which are anticipated to propel the market. The security alarms segment is anticipated to register a considerable CAGR in the coming years due to the rising demand for security alarms along with security cameras as these alarms help to send an alert to consumers if a burglary takes place. Moreover, key manufacturers are offering security alarms along with security cameras which can boost the global market in the coming years.

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What are the Main Aspects for Boosting the Security Types Segment?

In terms of security type, the residential security market is split into professionally installed and monitored, self-installed and professionally monitored, and Do-It-Yourself (DIY). The professionally-installed and monitored segment is projected to hold a substantial share of the market in 2022 as the installer can provide advice and usage instructions on-site. Moreover, professional installation can be a good option for more complex installations.

The DIY segment is anticipated to register a considerable CAGR during the forecast period owing to the increasing consumer preference for DIY products.  DIY products are gaining rapid attraction across the globe as it offers consumers to construct and handle the whole product on their own.

Why is the System Segment More Prevalent than the Service Segment?

In terms of solution types, the residential security market is bifurcated into systems and services. The system segment is further split into a fire protection system, video surveillance system, access control system, entrance control system, and intruder alarm system. The system segment is expected to expand at a significant rate as manufacturers are focusing on providing various systems with their products for consumers.

The services segment is further divided into security system integration services, remote monitoring services, fire protection services, video surveillance services, and access control services. The service segment is anticipated to register a considerable CAGR in the coming years owing to the increasing number of various easy-to-access services such as video surveillance services gaining rapid attraction with the introduction of 4K video resolution, AI, and machine learning which can further drive the market in the global market.

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Which Major Factors influence the Substantial Growth of the Residential Type Segment?

In terms of residential types, the residential security market is split into independent homes and condominiums/ apartments. The independent homes segment is projected to hold a significant share of the market in 2022, as residential security systems are widely used in doors, locks, alarm systems, lighting, motion detectors, and security camera systems.

The condominiums/ apartments segment is expected to register a considerable CAGR during the forecast period owing to the increasing usage of security systems in apartments for security measures. Apartments owners are installing various security systems for a better and safe residential experience for the consumer experience.

Why is North America dominating the Global Residential Security Market?

Based on region, the residential security market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to account for a dominant share of the global market in the year 2022. The growth of the market in North America is attributed to consistent technological advancements in residential security systems in the region, which are boosting the adoption of residential security systems in the region. Furthermore, increasing awareness among consumers regarding their safety is projected to propel the market in North America.

The market in Asia Pacific is expected to register a considerable CAGR during the forecast period owing to the rising population and rapid developments in infrastructure in the region. Increasing adoption of Artificial Intelligence (AI) in the Internet Of Things (IoT) devices especially for security and surveillance devices in developing countries such as India and China can drive the market in the region.

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Key Benefits for Industry Participants & Stakeholders

• In-depth Analysis of the global Residential security market
• Historical, Current, and Projected Market Size in terms of Value and Volume
• Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
• Industry Drivers, Restraints, and Opportunities Covered in the Study
• Recent Industry Trends and Developments
• Competitive Landscape & Strategies of Key Players
• Neutral Perspective on Global Residential Security Market Performance