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Residential Security Market Overview
The global residential security market is projected to attain a value of $60,765.2 million by 2023, demonstrating a CAGR of 8.7% during the forecast period (2017–2023). Increasing integration of the Internet of Things (IoT) technology in home security solutions, growing adoption of smart security solutions in the residential sector, and entry of multiple-system operators are some of the key factors supporting the market growth.
GLOBAL RESIDENTIAL SECURITY MARKET, BY PRODUCT, $M (2013 – 2023)
On the basis of product, the residential security market has been categorized into security cameras, smart locks, sensors, security alarms, and fire sprinklers & extinguishers. Among these, security cameras held the largest share in the market in 2016. The demand for security cameras is primarily driven by the fact that these help the users record all activities in the vicinity, including untoward actions.
Based on solution, the residential security market has been categorized into audio–visual surveillance, access control & management, home integrated security, alert system, intercom system, and fire protection. Of these, audio–visual surveillance solutions held the largest share in the market in 2016. This can be attributed to the high efficiency and a wide range of applications of these solutions.
Residential Security Market Dynamics
Emergence of wireless technologies is one of the key trends observed in the residential security market. With advancements in technology and lowering cost of security solutions, a large number of players have entered the market and started offering innovative home security solutions. Moreover, wireless solutions facilitate easier installation of complex home security solutions.
Furthermore, wireless home security provides occupants with better all-round service, with more accessible monitoring points than those provided by wired security systems. The demand for wireless systems is expected to rise in the coming years, as wireless technology also makes security systems less vulnerable as compared with traditional home security systems.
Increasing adoption of smart security solutions in homes is one of the key factors driving the growth of the residential security market across the globe. Advancements in smart security technology have resulted in enhanced security features. Moreover, new smart security solutions enable end users to exercise more control, from adjusting thermostat to turning on or off the lights or other appliances, which further facilitate energy savings. Such benefits have provided an impetus to the demand for smart security solutions in the residential sector, globally.
Do-it-yourself (DIY) residential security solutions are fast gaining traction worldwide. Due to the high product, installation, and maintenance costs of security systems, wireless DIY security solutions are witnessing rapid adoption in the residential sector, globally. These solutions are easy to install and maintain and do not demand the expertise of a skilled technician for operations. Further, new DIY security solutions have allowed the players to serve a larger customer base, by catering to consumers with budget constraints. This can, therefore, be viewed as an opportunity for the players in the residential security market to expand their market presence across the globe.
Residential Security Market Competitive Landscape
The global residential security market is highly fragmented due to the presence of a large number of global and regional players. With high competition in the market, major players are actively upgrading their products and services to meet the evolving customer needs.
Players in the residential security market are taking strategic measures in the form of partnerships, product launches, and geographical expansions to gain a competitive edge. For instance, in January 2018, Control4 Corporation acquired the intellectual property and key operating assets of Ihiji Inc., a U.S.-based remote management services provider, for an undisclosed amount. With this acquisition, the company aimed at providing professional integrators with device monitoring and management capabilities to efficiently and proactively support their connected-home customers.
Further, in January 2018, Nortek Security & Control LLC launched Stove & Grill Guard, an addition to the company's 2GIG Security offering. The solution provides alerts on burners that have been left on accidentally, whether after cleaning or cooking. Moreover, the user can modify the time from once a burner has been turned on to when the notification would be sent. Notifications can be sent either via smartphone or security panel system.
Some of the key players operating in the residential security market are Honeywell International Inc., Nortek Security & Control LLC, Alarm.com Inc., Allegion PLC, United Technologies Corporation, Bosch Security Systems Inc., Ingersoll Rand PLC, Control4 Corporation, and Godrej & Boyce Mfg. Co. Ltd.
Key Questions Answered in the Report