Smart Security System Market Share & Growth | Forecast 2031

Report Description

Smart Security System Market Outlook 2031

The global smart security system market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of XX% during 2023–2031. The market growth is attributed to the growing adoption of Internet of Things (IoT) connected devices and rising privacy & security concerns.

Rising privacy & security concerns are estimated to boost the demand for smart security systems in the coming years. Smart security system provides a wide array of safety features, including water leak sensors, fire and carbon monoxide detection, and emergency response capabilities, as well as allow users to view live footage through a mobile app, increasing their adoption for security purposes. Thus, increasing concerns among people regarding privacy and security are propelling the market.

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Demand for smart security systems is rapidly rising in residential and commercial spaces, as it is designed to guard a person's property against a broad range of threats, including sabotage, subversion, crime, espionage, fire, accidents, and attack. This system provides real-time alerts to users while allowing users to identify and communicate with strangers before unlocking the door.

Increasing adoption of IoT-connected devices is estimated to drive the market. IoT-connected devices with smart security systems manage and monitor the security of a property from anywhere, ensuring that users do not have to worry whether or not doors are locked. Therefore, the growing demand for IoT-connected devices is boosting the market. For instance,

• According to a report published, 15.14 billion IoT-connected devices are available worldwide and are estimated to reach 29.42 billion by 2030.

The COVID-19 pandemic hampered the demand for smart security systems. Manufacturers faced constraints in the production of smart security systems, due to a shortage of manpower and materials. Government preventive measures such as social distancing, use of personal protective equipment (PPE), and imposition of nationwide lockdowns disrupted the supply chain, impeding the market growth. Additionally, the drastic fall in construction activities around the globe hindered market growth, as smart security systems are used at home, hotels, cafes, hospitals, airports, and industries to enhance the safety and security of these places. For instance,

• As per the report published by the Royal Institution of Chartered Surveyors, 25% of construction projects were halted in the second quarter of 2020.

Impact of Artificial Intelligence (AI) on Smart Security Systems

The integration of artificial Intelligence in smart security systems creates an immense opportunity in the market. AI-powered smart security systems are designed to provide users with unprecedented security by offering real-time threat detection and response. It reduces the risk of cyber-attacks on security systems by improving the efficiency of cybersecurity operations. AI-enabled smart security systems are capable of learning from their surroundings and adapting to changing conditions. It provides a comprehensive view of the environment by monitoring multiple areas of the property simultaneously.

Smart Security System Market Dynamics

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Major Drivers

Increasing incidence of house fire is expected to drive the market. The smart security system includes smoke detectors, which help to reduce the incidence of a house fire by detecting fire, alarming occupants, managing risk, and notifying the fire department. Thus, the rising prevalence of house fires is propelling the market. For instance,

• According to the National Fire Protection Association (NFPA), 1,353,500 house fire cases were reported in the US in 2021, of which 3,800 deaths and 14,700 injuries were registered.

Rising urbanization around the globe is projected to boost the demand for smart security systems. The smart security system allows for managing urbanization by facilitating rigid protection and efficient response in an emergency. It provides a real-time view of traffic flow and incidents, including queues, crowds, and accidents through connected video surveillance, which increases their demand in urban areas. Therefore, growing urbanization is boosting the market. For instance,

• According to the World Bank, 56% of the world’s population, which is 4.4 billion, lives in cities, and the number is expected to double by 2050.

Existing Restraints

High cost associated with smart security systems is expected to restrict the market. Smart security systems are a set of various smart technologies, such as smart alarms, smart door locks, smart doorbells, and others, which are expensive and, thus, impede the market growth. Moreover, smart security systems require an internet connection to utilize the smart features linked to them, which leaves them vulnerable to hackers. This hampers the demand for smart security systems.

Emerging Opportunities

Growing investment in R&D activities by key players in the market to introduce novel technologies and products to guard a person's property against crime, attack, and sabotage creates a lucrative opportunity in the global market. For instance,

• On May 24, 2023, Salto introduced Neoxx G3 electronic padlock. This electronic padlock offers unbeatable durability and reliability, ensuring that property and valuables are kept safe and secure at all times.

Scope of the Smart Security System Market Report

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

Market Segment Insights

Product Segment Analysis

Based on product, the smart security system market is divided into smart intruder alarms, smart door locks, intelligent video surveillance, smart smoke detectors, smart outdoor lighting, and smart cards. The smart door locks segment held a large market share in 2022, due to its ability to lock and unlock doors remotely through smartphones or a central hub. Smart door locks allow users to enter their homes and provide access without requiring a traditional key. It also offers notifications about doors on mobile phones. Moreover, product development at affordable pricing encourages consumers to adopt this appliance. For instance,

• On November 24, 2021, Hero Electronix launched a Qubo Smart Door Lock to offer security and convenience to consumers.

The smart intruder alarms segment is projected to grow at a considerable pace during the projection period, owing to their potential to reduce burglaries and break-ins by increasing security. Smart intruder alarms detect unauthorized entry or attempted intrusion into a building, site, and room. Smart intruder alarm actively guards property around the clock through integration with other smart home devices, such as CCTV. This increases the adoption of smart intruder alarms in residential and commercial spaces.

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Solution Segment Analysis

On the basis of solutions, the global market is categorized into surveillance systems, critical infrastructure, and biometric authentication systems. The surveillance system segment accounted for a major market share in 2022, due to increasing crime around the globe. Surveillance systems are used by governments, police, private agencies, and citizens to reduce crimes by intelligent monitoring and identifying suspicious activities on time using CCTV. For instance,

• According to Centre for Economic Policy Research, a 20% reduction in crime was registered in Uruguay, where the cameras were located.

The biometric authentication systems segment is estimated to expand at a significant CAGR during the assessment period, owing to its ability to offer convenience and fraud resistance. The biometric system is widely applicable at airports, offices, residential societies, and government departments, as it does not require people to carry an external ID card. It offers a high level of security, as it is incredibly difficult to hack, due to the extreme complexity and randomness of biometric data.

Component Segment Analysis

In terms of components, the smart security system market is segregated into hardware, software, and services. The hardware segment dominated the market in 2022, due to the increased adoption of IoT-connected devices, such as smart doorbells, smart locks, smart sensors, smart thermostats, and others, which are controlled through smartphones or central hubs. Moreover, rising thefts and crimes encouraged people to adopt smart security systems, such as smart CCTV, smart alarms, smart locks, smart lighting, smart smoke detectors, and smart surveillance systems, resulting in segment growth.

The software segment is expected to grow at a robust pace during the projected period, as it protects and secures servers connected to smart security systems. Software helps to defend data, companies, users, and systems from a wide range of risks, such as spyware, phishing, ransomware, cybercrime, cloud security, and others. It also controls the security system by developing apps, which enhances their demand.

Application Segment Analysis

Based on application, the global market is divided into residential, commercial, and industrial. The commercial segment held a large market share in 2022, due to rapid urbanization and population growth. Commercial spaces, such as offices, are widely adopting smart security systems to protect business assets such as electronics, documents, equipment, and furnishings. Moreover, luxury hotels are shifting towards adopting smart security systems to secure the premises and keep guests safe from theft and other crimes by tracking visitors and break-ins.

The residential segment is anticipated to grow at a rapid pace in the coming years, owing to the rising cost of living and increasing number of homebuyers. Smart security systems in residencies prevent break-ins, property damage, and robberies. It also protects residencies from fire and other hazards, which increases the adoption of smart security systems in residential spaces.

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Regional Outlook

In terms of region, the smart security system market is categorized into Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. North America dominated the market in 2022, due to the presence of established market players, such as Johnson Controls, Honeywell International Inc., Google LLC, and Alarm.com. Additionally, the increasing cases of burglaries and crimes in the region are encouraging people to adopt smart security systems. For instance,

• According to the Federal Bureau of Investigation (FBI), the burglary rate in the US was 271.1 cases per 100,000 of the population in 2021.

Moreover, the US population is shifting towards the adoption of smart security systems, as these systems offer assurance that their property is guarded by smart intelligent solutions. For instance,

• According to Smart Home Organization, 39 million US households are protected by alarm systems, and young adults aged between 18 to 29 prefer to have some type of home security device.

The market in Asia Pacific is projected to expand at a high CAGR during the assessment period, owing to the increasing disposable income and growing government initiatives. Governments in the region are placing smart security devices around the country to reduce crime rates and increase public safety. For instance,

• According to a report published by Forbes in 2021, Delhi ranks 1^st for having the most CCTV cameras on roads, parks, malls, and other places with about 1,826.6 cameras per square mile, and Chennai ranks 3^rd with 609.9 cameras per square mile.

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