Home security refers to the measure taken for the prevention and detection of criminal activities by consumers using electronic equipment. This equipment is used for video surveillance, detection, access control, monitoring, and control of unwanted entry in residence. These precautionary measures are delivered through state-of-the-art technologies including cameras, sensors, electronic locks, detectors, alarms, and gesture control systems. Furthermore, hardware, software, and services are the three major components of home security solutions.
The global home security solutions market is estimated to be valued at US$ 25,249.7 million in 2021 and is expected to exhibit a CAGR of 18.0% over the forecast period (2021-2028).
North America (Region) held dominant position in the global home security solutions market in 2020, accounting for 38.0% share in terms of volume, followed by Europe and Asia Pacific, respectively.
Figure 1. Global Home Security Solutions Market Value (US$ Mn), by Region, 2020
Market Dynamics- Drivers
Enhanced security requirements from customers are expected to drive growth of the global home security solutions market during the forecast period. The need for security solutions has become essential with increasing rates of property crime, home invasions, and burglaries in the recent pasta. According to the U.S. Department of Justice, in 2013, around 8,632,512 property crime offenses were recorded in the U.S. according to the same source, of all property crimes in 2013, larceny-theft accounted for 69.6%, burglary accounted for 22.3%, and motor vehicle theft for 8.1%. Furthermore, according to the Federal Bureau of Investigation (FBI), in 2014, property crimes resulted in losses valued at an estimated US$ 22 Bn. Such a high rate of criminal offenses has led to increased demand for home security solutions.
Proactive initiatives by government authorities are expected to propel the global home security solutions market growth over the forecast period. Governments of the developed and emerging economies are focused on the development of smart and secure townships for urban development. Many countries have been developing new reforms for higher life expectancy and enhanced quality of living. The governments of different countries are doing budget allocations to bring in high levels of security technologies for both better infrastructure and technology in new residential projects. Thus, the concept of smart cities would also encapsulate measures for home security innovations under the real estate sector. Moreover, driven by increased competition, real estate developers are now pitching advanced features (such as security solutions) in their residential projects to woo customers and differentiate their projects from others.
|Base Year:||2020||Market Size in 2021:||US$ 25,249.7 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||18.0%||2028 Value Projection:||US$ 87,777.6 Mn|
Vivint Inc., Axis Communications AB, Assa Abloy AB, HikVision Digital Technology Co., Ltd., Tyco International Ltd., Protect America, Inc., Honeywell International, Inc., SimpliSafe, Inc., ADT Corporation, and Frontpoint Security Solutions.
|Restraints & Challenges:||
The advent of cost-effective solutions can present lucrative growth opportunities in the global home security solutions market. The market potential for home security solutions is very high if the cost factor can be properly justified in terms of value-for-money offerings to customers. Currently, home security companies offer products and services that most people cannot afford. Other overhead costs make the situation even worse for large-scale global customer acceptance. Customers, on the other hand, will be more than happy to use those services that give them better value for their money and greater quality.
Maximizing the brand presence can provide major business opportunities in the global home security solutions market. Majority of customers face a prevalent issue of lack of brand awareness and unfamiliarity with the advancements occurring in home security solutions. Increased market presence and customer touchpoints would overall result in greater brand awareness. In most parts of the world, people are still not very well informed about the availability of low-cost home security solutions in the market.
Luxury housing construction projects are using the home security solution feature as one of the major unique selling points The changing consumer’s way of looking towards luxury has given more stress on safety and security apart from comfort and antique designs for enhancing their quality of living. Builders are now focused on enhanced personalized security facilities for increasing their sales figures.
Smart home applications have witnessed significant demand in the past due to increased use of tablets and smartphones. Home security is now a major part of smart home applications that can be used for homes. Many consumers are adopting the latest technologies for a high level of security and automation in their homes.
Figure 2. Global Home Security Solutions Market Share, By Hardware, 2020
Key Takeaways of the Graph:
Market Dynamics- Restraints
High cost involved in security is expected to restrain growth of the global home security solutions market during the forecast period. The security solutions available in the market are significantly expensive and thus not many customers can afford it. Moreover, the maintenance, repairs, and troubleshooting charges compel them to take assistance from managed service providers, which again becomes a costly affair. Some companies offer rental security services, in order to make it affordable to customers. The average rental charges for good and reliable managed security services range from approximately US$ 45 to US$ 60 per month. Apart from that, there are fixed charges like activation, installations, equipment cost, and other add-ons that rounds the cost up to US$ 200.
Decreasing ownership-to-renting ratio is expected to hinder the global home security solutions market growth over the forecast period. House ownership has declined significantly in the recent past due to the steep rise in property rates globally. Furthermore, people working in the private sector are likely to change locations, especially if they have migrated away from their home towns. People who are renting usually do not want to invest big in their temporary rental properties, which ultimately do not belong to them. Moreover, people are less inclined to use home security solutions due to a lack of clarity regarding their place of long-term residence. On the contrary, landlords show the least interest in home security solutions given the existing renting price structure, which they consider an extra investment given the cost of purchase and installation.
Key players operating in the global home security solutions market are Vivint Inc., Axis Communications AB, Assa Abloy AB, HikVision Digital Technology Co., Ltd., Tyco International Ltd., Protect America, Inc., Honeywell International, Inc., SimpliSafe, Inc., ADT Corporation, and Frontpoint Security Solutions.
The most common type of home security systems and home security solutions include CCTV camera kits, motion detectors, and burglar alarms. These are usually used to keep an eye on a specific area in and around their homes. However, one can also use them to monitor the entire house. Using cameras and sensors to keep an eye on the property can protect from intruders who are after the valuables and other items. Another common type of home security solution and DIY kit include fire sprinklers, panic buttons, and access control systems. These are often used by homeowners to avoid a potentially dangerous situation where they feel threatened and unsafe. Fire sprinklers are used to put out small fires which can start in the kitchen or any other place in the house. Panic buttons are installed in emergency rooms or anywhere one might feel threatened in case of an intruder alarm.
The emergence of the Internet of Things (IoT) and wireless technologies is expected to boost the global home security solutions market growth over the forecast period. Internet of Things (IoT)-enabled home security solutions have gained significant popularity among consumers are they are more efficient to use and provide better control & monitoring, cost & energy savings, improved security, and enhanced comfort. Key companies in the market are focused on launching IoT-enabled security solutions, in order to gain a competitive edge in the market. For instance, in October 2020, Smith introduced a new line of Wi-Fi-enabled security cameras with infrared night vision, motion detection, and two-way communication.
Moreover, increasing adoption of IP cameras for video surveillance is expected to accelerate growth of the global home security solutions market in the near future.
Key features of the study: