Smart Home Security Market Size

Smart Home Security Market Analysis

The Smart Home Security Market size is estimated at USD 32.46 billion in 2024, and is expected to reach USD 61.97 billion by 2029, growing at a CAGR of 13.81% during the forecast period (2024-2029).

The rising number of internet users, rapidly growing adoption of smartphones and smart gadgets, and the increasing concern about remote house monitoring are the key factors driving the growth of smart home security market. Furthermore, rising crime rates around the world are fueling industry growth.

• The introduction of IoT and favorable policies created a solid basis for the smart home security market. By 2025, the GSMA predicts that China will likely account for around 4.1 billion IoT connections or about one-third of all IoT connections worldwide. In addition, programs like the Made in China 2025 strategy, the National New-type Urbanization Plan, and the Smart Cities Projects are anticipated to drive the growth of China's smart home security market. Most companies and vendors in China compete to stay dominant in the market as the overall demand for the installation of AI-powered security cameras in homes is growing massively, offering homeowners greater security features, such as timely intruder alarms or notifications when their loved ones arrive home.
• According to Bunning's study, a prominent home improvement retailer and outdoor living products in Australia and New Zealand, smart home technology is growing in Australia, with around 49% of the population now having some form of this technology. The company's study also uncovered that 1 in 2 Australians use their smart home technology daily, with general security (61%) and protection against intruders (44%) the most significant drivers for uptake. Security camera systems are the biggest mover in the space, with Bunning's study predicting that most Australians would install some security device in their home in the next five years. However, with the numerous benefits of smart home security products, they could leave homeowners more vulnerable to digital threats, and these devices are potential points of entry for cybercriminals who wish to access personal data. These concerns are challenging the market growth.
• Moreover, Google Assistants and Amazon Alexa are compatible with home security systems. Thermostats, smart locks, cameras, doorbells, wall-mounted touchscreen displays, smartphone apps, Google Assistants, and Alexa are all integrated into home security systems, in addition to others. The connectivity between these devices allows for constant home security. Including additional features such as carbon monoxide (CO) listeners, flood and freezing alarms, and other recent technologically enhanced security systems expands the potential for new markets for smart home security systems. Furthermore, Z-Wave-compatible smart home alarm systems use Wi-Fi-enabled cameras to monitor homes using sound detection and panoramic videos.
• The Covid-19 pandemic significantly negatively affected the expansion of the worldwide home security systems industry. Due to production hiccups and temporary transportation system shutdowns, global sales declined precipitously during that period. The supply chain interruption in China caused a sharp fall in demand for home security systems, severely impacting key markets worldwide. Some reasons affecting demand in China include the drop in new development projects and the closure of production plants. However, as the market recovers in 2021, the US and China are expected to re-emerge as major countries in the home security systems market.