Smart Homes Security Services Market Size
|Study Period:||2018 - 2028|
|Fastest Growing Market:||North America|
|Largest Market:||North America|
*Disclaimer: Major Players sorted in no particular order
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Smart Homes Security Services Market Analysis
Security Services Market for Smart Homes is expected to grow at a CAGR of 24.1% over the forecast period (2021 - 2026). The home security system market has been growing at a tremendous rate, with emerging new trends and innovative technologies 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.
Smart home security devices can be connected to Wi-Fi and accessed from anywhere using smart devices, such as smartphones, smartwatches, or voices. The security services market for smart homes is driven by the increasing crime rates across the world, which is forcing people to focus on security and safety systems, especially in residential areas.
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 the 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 prefer multiple solutions in one package to access 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 threats, 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.
COVID-19 has seriously impacted the growth of the security services for the smart home market. The impact of COVID-19 has been significantly adverse, as supply chain disruption in regions such as 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.
For instance, various home security systems vendors are headquartered in Hubei province, which is one of the pandemic epicenters, thereby 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 has adversely affected the growth of the market.
Smart Homes Security Services Industry Segmentation
Security Services for smart homes include Video Surveillance solutions such as Security Cameras, Monitors, and Storage Devices, and Access Control systems such as Facial Recognition, Fingerprint Recognition, and Iris Recognition systems. Smart home security systems also consist of smart home security devices and related services, which comprise solutions such as smart alarms, smart locks, and sensors.
Smart Homes Security Services Market Trends
This section covers the major market trends shaping the Smart Homes Security Services Market according to our research experts:
Video Surveillance systems are expected to register significant growth in forecasted period
Video Surveillance systems include Security Cameras, Monitors, Storage devices, etc. 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 security cameras.
Security cameras are the central component of all security systems. One of the most popular kinds of video cameras is IP Camera, which has been popularly marketed as a network or internet camera and provides live video and audio feeds that the user can access remotely using an internet browser. An increasing number of smart home devices shipments are directly owing to the demand for security systems to be implemented in the devices.
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. 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 two major 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.
However, the security cameras can be used for the 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 the 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.
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North America witnesses significant growth opportunities in the market
Smart homes are on the rise, with United States households using smart home technology such as connected cameras (highest demand), video doorbells, connected light bulbs, smart locks, and smart speakers, among others. According to the US Department of Energy, the buildings sector accounted for about 76% of the electricity used, resulting in a considerable amount of associated greenhouse gas (GHG) emissions, thereby making it necessary to reduce energy consumption in buildings to comply with the national energy and environmental challenges and decrease costs to building owners and tenants.
According to the New York State Energy Research and Development Authority (NYSERDA), enabling smart technologies and real-time energy management systems can decrease costs by an average of 15% and improve the bottom line by creating an ecosystem that reduces energy waste.
Moreover, with the COVID-19 impact, multiple energy management software providers extend their services beyond energy management systems by building health assessment solutions. For instance, in 2020, Honeywell launched an integrated set of solutions to help building owners improve the health of their building environments, along with energy efficiency. These solutions further help building owners operate more cleanly and safely and also comply with social distancing policies.
The surveillance system is an essential part of any modern automated home, which introduces intelligent analysis of person activity to enhance the security system at home. Further, smart home technology can detect lock picking or tampering attempts and automatically freeze the deadbolt into a locked position in response.
Moreover, players focus on expanding the solution through acquisitions, which significantly raises the market growth. Telus Corp. (a Canadian firm) has expanded its security business by buying the local operations of ADT Inc., which is focused on providing SmartHome Security, supporting a strategy of using its PureFibre networks to enhance the connected home.
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Smart Homes Security Services Industry Overview
The security Services market for smart homes is fragmented. Various established international brands, domestic brands, as well as new entrants, form a competitive landscape. The major players are increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, increasing investments in research and development.
- June 2021: ADT Inc., one of the largest home security companies in the U.S., filed a U.S. patent-infringement complaint seeking to block imports of Vivint Smart Home Inc. products over the growing American market for smart-home technologies. The company claims Vivint’s home security monitoring and automation control panels infringe two patents for “smart home integration, data collection, and control panel functions and interfaces, among other capabilities and features.
- March 2020: Vivint Smart Home introduced its AI-powered Doorbell Camera Pro with a 180-degree vertical and horizontal field of view, along with a 1:1 aspect ratio that can intelligently detect packages and protect from theft and other potential threats. It provides homeowners with peace of mind by helping to prevent crimes before they happen.
Smart Homes Security Services Market Leaders
ADT Security Services
Tyco Security Products
*Disclaimer: Major Players sorted in no particular order
Smart Homes Security Services Market News
- June 2020: Swann, engaged in providing do-it-yourself security solutions, 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 in homes. The camera is stocked with modern smart security features, including free face recognition and cloud or local storage.
- September 2020: Hangzhou Hikvision Digital Technology Co. Ltd launched Hik-ProConnect, a convergent, cloud-based security service solution where users can converge Hikvision devices to cover video, intrusion, access control, intercom, and more to address their security needs. Users can also authorize their professional security advisors to complete necessary system management, such as remote system health checks and maintenance.
Smart Homes Security Services Market Report - Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Value Chain Analysis
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitutes
4.3.5 Intensity of Competitive Rivalry
4.4 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Safety Concerns
5.1.2 Decreasing Costs of Sensors
5.2 Market Restraints
5.2.1 High Installation Costs
6. MARKET SEGMENTATION
6.1.1 Video Surveillance
18.104.22.168 Security Cameras
22.214.171.124 Storage Devices
6.1.2 Access Control
126.96.36.199 Facial Recognition
188.8.131.52 Fingerprint Recognition
184.108.40.206 Iris Recognition
6.2.1 Professional Installation
6.3.1 North America
220.127.116.11 United States
18.104.22.168 United Kingdom
22.214.171.124 Rest of Europe
6.3.3 Asia Pacific
126.96.36.199 Rest of Asia Pacific
6.3.4 Middle East and Africa
188.8.131.52 Saudi Arabia
184.108.40.206 United Arab Emirates
220.127.116.11 Rest of Middle East and Africa
6.3.5 Latin America
18.104.22.168 Rest of Latin America
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 ADT Security Services
7.1.2 AT&T Inc.
7.1.3 Comcast Corporation
7.1.4 Vivint, Inc
7.1.5 Tyco Security Products
7.1.6 Control4 Corporation
7.1.7 Honeywell International Inc.
7.1.8 Smart home Inc.
7.1.9 United Technologies Corporation
7.1.10 iControl Networks, Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Smart Homes Security Services Market Research FAQs
What is the study period of this market?
The Security Services Market for Smart Homes is studied from 2018 - 2028.
What is the growth rate of Security Services Market for Smart Homes?
The Security Services Market for Smart Homes is growing at a CAGR of 24.1% over the next 5 years.
Which region has highest growth rate in Security Services Market for Smart Homes?
North America is growing at the highest CAGR over 2018 - 2028.
Which region has largest share in Security Services Market for Smart Homes?
North America holds highest share in 2021.
Who are the key players in Security Services Market for Smart Homes?
ADT Security Services, AT&T Inc, Comcast Corporation, Vivint, Inc., Tyco Security Products are the major companies operating in Security Services Market for Smart Homes.
Security Services Market for Smart Industry Report
Statistics for the 2023 Security Services for Smart Homes market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Security Services for Smart Homes analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.