The Global Home Security Solution Market Anticipated to Generate a Revenue of $132,735.2 Million, Growing at a CAGR of 14.9% from 2021 to 2028 - Research DiveDownload Sample Reports Overview
The global home security solution market is estimated to be valued at $132,735.2 million by 2028, surging from $42,532.0 million in 2020 at a noteworthy CAGR of 14.9%
Impact Analysis of COVID-19 on the Home Security Solution Market
COVID-19 has thrown a wrench in the works, forcing individuals, organizations, and governments to rethink their policies, priorities, and actions. These developments are acting as a stimulus for technological advancement and creativity. As more people stay at home and close to home due to the pandemic, IoT technology will become more popular. In the long run, a wider base of IoT users will lead to industry expansion, more user upgrades, and more innovative technology development. It will be critical for smart home tech suppliers to produce relevant and easy-to-use, easy-to-adopt technologies in order to leverage on user growth. Consumers will priorities ease of installation, integration with other IoT devices, and security. Growing awareness of home security systems, the emergence of the wireless technologies and Internet of Things and increasing acceptance of IP cameras for video surveillance amid the COVID-19 problem are all expected to drive the growth of the home security solution market.
Global Home Security Solution Market Analysis
Increased security threats and breaches have resulted in a strong demand for increased safety and security systems such as alarm system and sensors, CCTV cameras, and other similar devices. This is expected to boost the global market for home security systems. Furthermore, growing urbanization and technological improvements have necessitated the development of better security systems that can be monitored via cellphones. This has also aided in the creation of new concepts such as home automation, intelligent building, and security integration, all of which have aided in the growth of the home security market. Furthermore, as bandwidth, network infrastructure, and internet penetration grow, people are opting for wireless and technologically advanced items to provide greater protection to their families.
The security and privacy concerns & complexity associated with the installation of the solution can act as restraining factors for the home security
The home security system market for condominiums and apartments is expected to grow at a faster rate, as cities have begun to grow vertically as a result of increased urbanization, resulting in an increase in the number of residential flats and complexes. As a result, the society builders and management organization’s must provide a high level of security while managing a huge number of families. As a result, the home security market for condominiums and apartments is predicted to rise at over the forecast period, owing to the growing number of condominium and apartment projects in cities around the world. Furthermore, the expansion of smart city initiatives, the introduction of IoT, and the integration of wireless technologies are all contributing to the market's growth prospects.
Global Home Security Solution Market, Segmentation
The global home security solution market is segmented based on component, solutions, installation, end-use, and region.
The component segment is further classified into hardware, software/platform, and service. The service sub-segment is expected to have the fastest growing market, with revenues exceeding $46,427.0 million by 2028, up from $14,308.6 million in 2020. Due to the convenience of controls and better efficiency of the integrated system, users are increasingly preferring professionally monitored services. Furthermore, as the demand for services grows, offering a high level of security while managing a big number of families becomes vital for society builders and management organizations.
The solutions sub-segment is further classified into video surveillance system, alarm system, access control system, and others. The video surveillance system sub-segment is expected to have a dominant market share of $57,180.7 million by 2028, up from $18,654.8 million in 2020. The increasing incorporation of high-tech video surveillance systems in developing as well as developed region is propelling the security industry growth. The demand for real time monitoring and reduction in the associated crime rates in residential and private buildings are booming the market of this type of solutions.
The Installation sub-segment is further divided into professionally installed and do-it-yourself (DIY). The professionally installed sub-segment is expected to have a dominating market share and surpass $93,889.4 million by 2028, up from $ 31,729.3 million in 2020. The rising adoption of the security solution worldwide is creating new opportunities for the professionally installed home security solution providers. This is primarily because the users are adopting the technologically advanced devices, that comprise of artificial intelligence, machine learning, and others. Moreover, leading service providers are challenging the promises made by home improvement and DIY kits about how easy it is to install them, and they're using this method to grow their customer base in the smart home installation services industry.
The end-se sub-segment is further divided into independent homes, condominium, and apartments. The independent homes sub-segment is expected to have a dominating market share and surpass $75,791.0 million by 2028, up from $24,744.3 million in 2020. Due to the widespread adoption of the independent house, both emerging developing and developed regions are expected to have rapid growth throughout the forecasted period. As the pandemic-induced lockdown drove many to consider a second home, real estate developers are witnessing increased demand for plots and independent houses.
In addition, the rising disposable income and the growing economy are further fueling the market growth.
The home security solution market for the North America region is projected to have the largest share. The market in North America generated a revenue of $18,646.0 million in 2020 and is projected to reach up to $56,677.9 million by 2028. The growing popularity of home security solutions which refers to authentications, detection, tracking, and monitoring of the activities happening in residential area is being witnessed. The demand for home security solution market in North America is increasing. Due to growing spending of individuals to ensure the safety and security of the family and home, it is expected to result in an increase in the deployment of the home security solution in the country.
Key Players in the Global Home Security Solution Market
Some of the leading global home security solution market players are –
- Johnson Control (Tyco Security Products)
- Nortek Security and Control
- Honeywell International Inc
- ASSA ABLOY
- ADT LLC DBA ADT SECURITY SERVICE
- Vivint, Inc.
- Bosch GmbH
- Alarm.com Incorporated
- Brink’s Home Security (MONI Smart Security).
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Home Security Solution Market
- Bargaining Power of Suppliers: There are many suppliers in the home security solution market and product dependence, availability of the different type of solution, and pricing give suppliers significantly low bargaining power.
As a result, the bargaining power of suppliers is low.
- Bargaining Power of Buyers: The initial cost of necessitates large capital investments. Lack of awareness among the individuals regarding the availability of the security solution in developing regions.
As a result, the bargaining power of buyers is high.
- Threat of New Entrants: Startups entering this market use of latest technologies such as AI. New entrants in business services bring innovation, new ways of doing things, and put pressure on home security solutions through lower pricing strategy, reducing costs, and providing new value propositions to the customers.
As a result, the threat posed by new entrants is high .
- Threat of Substitutes: There are many major players involved in the home security solution coming up with the advanced and latest technologies for the security. The development of the technologies continues among all the players for each type of solution.
Therefore, the threat of substitutes is high.
- Competitive Rivalry in the Market: To stay ahead of the competition, companies in the global home security solution market are focusing on strategies such as business expansion, technological innovations, and product advancements.
As a result, the market's competitive rivalry is moderate.