The global home security system sales are set to grow 6.66 percent annually between 2017 and 2022, driven partly by growing smart home adoption and advances in sensor technologies, according to a report of Research and Markets.
Home security solutions include video surveillance systems, alarm systems and access control systems. Integrated home networks are vital to these security systems’ normal functioning, the report says.
Innovations in home security systems, decreased hardware prices, advances in wireless standards and smartphone penetration will also fuel the growth of the home security market, according to Research and Markets.
The report also indicated that that one challenge affecting the market is increasing instances of false alarms.
A separate study of 10,000 U.S. broadband households by Parks Associates found that remote monitoring with no long-term commitment are key factors to attract home security customers
Among the 73 percent of the households without a home security system, 19 percent said they are very likely to buy a home security system if it can be monitored and controlled via a smartphone, and 19 percent indicated very likely to buy a home security system if it does not require a long-term contract.
The firm notes that new entrants like Nest, technology enhancements like voice control from Amazon, and creative business models contribute to shifting consumer expectations and put pressure on the traditional security industry to innovate in both technology and business strategies.
“Smart home adjacencies have helped revitalize the traditional security industry but also create new competition,” said Dina Abdelrazik, a research analyst at Parks Associates.
Consumers can create DIY solutions with doorbell video cameras, networked cameras, among others. Alternative approaches to systems and monitoring, including a new batch of DIY systems, are emerging, Abdelrazik said. For instance, Vivint is bringing monitoring beyond the home with its introduction of Streety, an application that allows neighbors to share video clips and live feeds from their home security cameras.
Other research insights include: traditional security companies account for the majority (72%) of all professionally monitored subscribers, but this share is declining. Also, 41% of home security system owners live in the southern U.S., and over 50% of professionally monitored subscribers have interactive services.
In addition, 16% of U.S. broadband households are highly likely to acquire a security system within one year of the survey, and one-half plan to acquire a system that they can install themselves.