HOME SECURITY SOLUTION MARKET ANALYSIS

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).

Recent Developments:

1. In December 2019 Hangzhou Hikvision Digital Technology Solutions signed a deal with Scylla Technologies Inc., a protective intelligence organization, to investigate AI technology potential. Integration of Scylla AI-powered systems with Hikvision cameras and NVRs is part of the agreement, as is development into how Scylla technology may be utilised in Hikvision's central administration platform, HikCentral, to enable advanced Scylla functionality across bigger installations.
2. In January 2020 Honeywell, collaborated with Etisalat Misr a world's leading telecom groups to install digital solutions in Egypt's new intelligent city. The agreement was signed during the Intersec 2020 Conference in Dubai.
3. In August 2021 ASSA ABLOY acquired capital door service a leading pedestrian door distributor and service company

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

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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.

Market Opportunity

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.

Market Trends

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

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Key Takeaways of the Graph:

• The Electronic Locks held dominant position in the market and accounted for 50.0% share in the global home security solutions market in 2020. The segment is expected to reach US$ 62,717.1 million in 2028, owing to growing adoption of electronics locks
• In 2020, the Bio metrics accounted for the largest share of 49.0% in the global home security solutions market and is expected to be valued at US$ 3,184.9 million by 2028. This is owing to growing use in commercial indutries

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.

Competitive Section

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.

Key Developments

1. Key market players are focused on product launches, in order to expand the product portfolio. For instance, in September 2019, Axis Communications AB introduced 4K resolution PTZ camera.
2. Key companies are involved in product launches, in order to enhance the market presence. For instance, in September 2018, HikVision Digital Technology Co., Ltd introduced a new intruder alarm system named AXHub.