Home Security System Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Home Security System Market is expected to grow at a CAGR of 7% over the forecast period 2021 to 2026. The home security system market has been growing at a tremendous rate. Every year, new trends emerge and improve old technology, making the home security sector more effective. The demand for home security systems is likely to be driven by the growing adoption of smart homes where smart security systems are an integral part. The adoption of smart homes is made possible by the advancement in future technologies like IoT.

• Houzz’s 2019 Overview of US Renovation has stated that homeowners spend nearly USD 500 on smart home and security equipment, especially in voice assistants, video doorbells, and smart lights. Improvement in network bandwidth and related infrastructure have drawn attention to cloud-based storage for live feeds in home security.
• Artificial Intelligence (AI) has the potential to play a major role in boosting innovation in the home security and monitoring market. In addition, AI combined with machine learning could reduce chances of false alarms, enhance detection of anomalous activities and performance of video analytics, and offer better video verification and surveillance capabilities. The introduction of this combination in security and monitoring systems can attract more consumers.
• Nowadays, customers have been preferring multiple solutions in one package, in order to get access to the most budget-friendly solution. Thus, vendors have been rolling products keeping in mind this kind of demand. For instance, in August 2020, Hero Electronix introduced 'Qubo Shield‘, a home security solution, which provides end-to-end security across all aspects of the home. It guards against external threat, such as theft or any safety threat, such as fire and gas leakages.
• Among all the applications, video surveillance has been gaining the maximum market share. Surveillance systems implemented at homes have varied applications, such as monitoring and access control. These systems are also equipped with features, such as motion detection and night vision. With the increasing rate of crimes, video surveillance is expected to play a significant role in preventing crime, primarily due to the threat of being detected.
• For instance, according to the Metropolitan Police, there were around 215.7 thousand violent crime offenses recorded by the police in London in 2018-2019, an increase of approximately 13.8 thousand, as compared to the value registered in 2017-2018
• Many empirical pieces of evidence suggest the effectiveness of security surveillance cameras in the residential sector. In 2018, the London Metro Police’s team was able to identify about 5,000 suspects, based on the videos recorded in the surveillance cameras.
• As per the UNC Charlotte of Criminal Justice, more than 60% of convicted burglars agree that they look for the presence of security cameras before entering a residential property, while 40% of burglars agree that they look for another easier target, in case surveillance cameras are present.
• Bad actors have always been navigating through the internet, reading about devices that have been exposed and keying in default usernames and simple passwords to see if they can gain access to real accounts.
• The UK consumer watchdog “Which?” has warned that around 3.5 million security cameras installed in homes and offices, mainly in Asia and Europe, have serious vulnerabilities that expose the gadgets’ owners to the risk that attackers may spy on them, steal their data, or target other devices on the same networks.
• HiChip, the company that produces many of the camera brands and developed the CamHi app, has been working together with Which? and Marrapese on improving the security of its cameras.
• The pandemic COVID-19 has seriously impacted the growth of the global home security systems market. The impact of COVID-19 on notable markets such as the US and China has been significantly adverse, as supply chain disruption in China has ended in a decline in the need for home security systems. The reduction in the number of latest construction projects and manufacturing plants' closing are determinants influencing the demand globally. The US market is anticipated to show more strong growth related to other countries in the Americas region.
• For instance, larger Chinese manufacturers of home security systems are headquartered in Hubei province, the pandemic epicenter, affecting domestic vendors such as ZKTeco, Hikvision, and Dahua with labor deficits and production obstructions throughout the country. The coronavirus's impact on the global supply of security equipment will broadly depend on how the condition in China stabilizes and when the plants return to operations. Moreover, the chances of a trade war between the US and China have led many American suppliers to stockpile products and components manufactured in China slowly.

Scope of the Report

The home security system is an integration of software and hardware devices that are intended to detect intrusion or unauthorized access if a secured zone is breached. There are a host of home security systems ranging from light sensors or security cameras to fully integrated smart home solutions. The systems also warn about potential environmental dangers, like bad air quality, flood, excess presence of carbon monoxide, etc., and can even be operated during a power failure.

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Key Market Trends

Security Cameras will drive the Adoption of Home Security Systems

• Advances in technology have allowed for major advancements (along with significant reductions in costs) in video surveillance camera quality, recording capability, and more importantly, affordability, which is the major driving force for the security cameras. Security cameras are the central component of all security systems. One of the most popular kind of video cameras is IP Camera, which have been popularly marketed as network or internet camera and provide live video and audio feeds that the user can access remotely using an internet browser.
• However, wireless security cameras have grown in popularity due to their adaptability, versatility, and ease of use. They are easy to install, drastically reducing installation costs since they do not require lengthy (and expensive) cables or professionals to set them up. This handy feature allows users to mount the cameras in places, which are not accessible to regular CCTV cameras. 
• Most of the Wi-Fi cameras provide a live video feed for free but require the user to pay a monthly subscription fee to view recorded footage stored in the cloud. A user pays more if he/she has multiple cameras connected to the service. Payment also depends on how long the user wants the CCTV footage stored for.
• In August 2020, Arlo introduced an entry-level, wireless home security camera, which packs everything a basic user will need into a simple, user-friendly unit at an affordable price. It offers a narrower field of view at 130 degrees. There is also support for the major two smart assistants at home — Amazon Alexa and Google Assistant.
• In the same month, Google paid USD 450 million for a 7% stake in home and business security provider ADT. The partnership will lead to ADT using Nest's internet-connected cameras, as well as another device called the Nest Home Hub that comes with an internet-connected camera, as part of its customers' security systems.
• In June 2020, Swann, a global leader in do-it-yourself security, announced the release of the Swann Wire-Free Security Camera, a new, completely wireless camera that can be set up in seconds and used for monitoring indoors or outdoors. The camera is stocked with modern smart security features, including free face recognition and cloud or local storage.
• However, the security cameras can be used for unintended purpose (and in violation of end-user license agreements) which can be illegal under federal and state criminal laws as well as subjecting abusers to civil liability.
• As per a latest research by Queen Mary University of London (QMUL) and the Chinese Academy of Science, using data provided by a large Chinese manufacturer of Internet Protocol (IP) security cameras, it was concluded that some popular home security cameras could allow the potential burglars to look at data uploaded by the camera and work out when the users have left the building.
• In December 2019, there were reports of hackers gaining access to Ring security cameras in Tennessee, Mississippi, Florida and Texas. Moreover, as per “Which?”, brands with potentially vulnerable cameras include Alptop, Besdersec, COOAU, CPVAN, Ctronics, Dericam, Jennov, LEFTEK, Luowice, QZT, and Tenvis.

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