Smart Home Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Smart Home Security Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028) The smart home security systems market is expected to register a CAGR of 13.81% during the forecast period. The growing number of internet users, the rapid proliferation of smartphones and smart gadgets, and the growing concern for remote house monitoring are the primary drivers driving the growth of the worldwide smart home security market. Furthermore, rising crime rates around the world are fueling industry growth. Key HighlightsThe introduction of IoT and favorable policies created a solid basis for the country's 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 against each other 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.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 interruption of the supply chain 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 recovered in 2021, the US and China are expected to re-emerge as major countries in the home security systems market.On the flip side, smart home gadgets are susceptible to attacks due to their specialized nature. IoT providers need to offer the necessary solutions for specialized security. Additionally, small operating systems like INTEGRITY, Contiki, FreeRTOS, and VxWorks, whose security solutions are less reliable than those of Windows- or Linux-based systems, frequently power smart home devices. Most commonly used gadgets cannot be upgraded once installed to increase security against changing cyberattacks.Smart Home Security Market TrendsSmart Camera and Monitoring Segment to Witness Significant Growth Surveillance systems are gaining considerable market traction in the recent past. The residential societies and different homeowners use these systems to check on various activities for safety and security purposes. Advanced intelligent surveillance systems (AISS) are replacing traditional surveillance systems. The latter is used to identify abnormal behavior and patterns via artificial intelligence technologies, pattern recognition, and computer vision. This, in turn, enables high-accuracy monitoring of multiple scenarios by a few observers. Over the past few years, the video surveillance market has significantly transformed into third-generation video surveillance systems, moving to IP video from traditional analog video causing better processing power and improved compression algorithm. Further, smart home monitoring solutions are designed and implemented using emerging technologies, such as the Internet of Things (IoT). The growing use of IoT offers functions like electric control, environmental monitoring, indoor monitoring, abnormal alarm, historical information query, and many more. Over the last few years, the adoption of IP cameras has increased owing to the growing demand for crisp image resolution and perimeter surveillance. The critical technologies adopted worldwide include CCTVs, command & control, private LTE communications, data storage, ANPR (automatic number plate recognition), video analytics, and supporting ICT equipment. These technologies have promoted the adoption of smart cameras and monitoring systems. The smart home cameras and surveillance systems in the current marketplace can record HD videos and images at 1080x720 pixels for superior resolution. The camera is triggered when sounds or motions are detected. Also, two-way communication is possible via the camera as two-way speaking and listening are enabled. According to the Federation of Indian Chambers of Commerce & Industry, the total number of constructed dwellings in India's metropolitan areas under the Pradhan Mantri Awas Yojana (PMAY, The Prime Minister's Housing Plan) reached 5.4 million in 2022. The program, which began in 2015, mostly consists of housing complexes. In 2020, the need for housing facilities for the urban poor was expected to be over 11 million dwelling units. North America is Expected to Hold Major Share The United States is the prominent market in the North American region, owing to the growing adoption of smart home technology and products. According to the National Council For Home Safety and Security (Alarms.org) study, more than 3 in five Americans claim security is the top benefit of owning a smart home. Also, 57% of Americans stated that smart home technology products could save an average of 30 minutes daily. Owing to the growing need for households to purchase smart locks as part of home security or home control system, companies in the market are developing partnerships. For instance, ADT, a security, automation, and smart home solutions provider, announced a collaboration with Intrado, a global technology company. The partnership will allow ADT to offer additional data to 911 centers and first responders using Intrado's Emergency Data Broker throughout the alarm response process. Moreover, according to New-Gen Apps, "The United States of America was able to conserve energy and reduce household consumption by 20% just by the introduction of smart homes and sensors." Furthermore, According to Thales Group, 63 million U.S. households will have a home security system by 2024. Such trends would drive the market's growth in the country. In May last year, Vivint Smart Home, a smart home company in North America, announced a suite of new products that will further enhance the company's smart home experience and provide intelligent solutions, including an all-new Doorbell Camera Pro, Outdoor Camera Pro, Spotlight Pro, and Indoor Camera Pro. Such developments provide comprehensive home security to households in the United States, strengthening the home security market. In October last year, EZVIZ, a global smart home security company, announced the launch of its all-star lineup of battery-powered smart products for the Canadian market, including the DB2 Battery Doorbell Kit and CP4 Battery Door, Viewer. The DB2 Doorbell and CP4 Door Viewer are wireless for hassle-free setup and use. The easy installation and usage of home security appliances are driving the growth of Canada's smart home security market.Smart Home Security Industry Overview The smart home security market is highly fragmented due to low entry barriers. The major players in the market are ADT Inc., Honeywell International Inc., Johnson Controls International PLC, Hangzhou Hikvision Digital Technology Co. Ltd, and Abode Systems Inc., among others. Further strategic partnerships and innovations are the driving force for the industry, and the market is evolving faster in terms of technology and features. October 2022 - Johnson Controls acquired rescue air systems to enhance its fire suppression portfolio. This acquisition enables the company to design, sell, and install firefighter air replenishment systems in a rapidly growing vertical market. August 2022 - ADT, a security and smart home solutions provider, and Google announced a long-term collaboration to develop the next generation of smart home security systems. The partnership will combine Nest's award-winning hardware and services, powered by Google's machine learning technology, with ADT's installation, service, and professional monitoring network to provide customers across the United States with a more useful smart home and integrated experience. Additional Benefits: The market estimate (ME) sheet in Excel format 3 months of analyst support Please note: The report will take approximately 2 business days to prepare and deliver.