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Smart home security utilizes IoT-enabled devices to allow customers to monitor and manage the security of their homes, including door access and surveillance. It employs various IoT technologies to enable consumers to remotely monitor and manage their house security.

The estimated size of the Smart Home Security Market in 2023 is USD 28.52 billion and is projected to reach USD 54.45 billion by 2028, with a compound annual growth rate (CAGR) of 13.81% during the forecast period (2023-2028).

The introduction of IoT and favorable policies have laid a solid foundation for the smart home security market in China. According to GSMA, China is expected to account for approximately 4.1 billion IoT connections, around one-third of all worldwide IoT connections, by 2025. Initiatives such as 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. As the overall demand for AI-powered security cameras installation in homes significantly increases, companies and vendors in China are competing fiercely to maintain their dominance in the market. These cameras offer homeowners enhanced security features like timely intruder alarms or notifications when their loved ones arrive home.

According to a study by Bunning, a prominent home improvement retailer in Australia and New Zealand, smart home technology is gaining popularity in Australia, with approximately 49% of the population having some form of this technology. The study also revealed that 1 in 2 Australians use their smart home technology daily, with general security (61%) and protection against intruders (44%) being the main drivers of adoption. Security camera systems are experiencing significant growth, and the study predicts that most Australians will install some form of security device in their homes within the next five years.

Furthermore, smart home security systems integrate with Google Assistants and Amazon Alexa. These systems include features such as thermostats, smart locks, cameras, doorbells, wall-mounted touchscreen displays, smartphone apps, Google Assistants, and Alexa. The connectivity between these devices ensures continuous home security. Additional features such as carbon monoxide (CO) listeners, flood and freezing alarms, and other technologically advanced security systems open up new market opportunities for smart home security systems. 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 had a significantly negative impact on the global home security systems industry’s expansion. Sales declined sharply due to production disruptions and temporary shutdowns in transportation systems. The supply chain disruption in China led to a significant decrease in demand for home security systems, affecting key markets worldwide. Factors influencing demand in China included a decline in new development projects and the closure of production plants. However, as the market recovered in 2021, the United States and China are expected to regain their positions as major players in the home security systems market.

On the downside, smart home devices are vulnerable to attacks due to their specialized nature. IoT providers need to offer adequate security solutions for these specialized devices. Additionally, small operating systems like INTEGRITY, Contiki, FreeRTOS, and VxWorks, which power many smart home devices, have less reliable security solutions compared to Windows- or Linux-based systems. Most commonly used devices cannot be easily upgraded after installation to enhance security against evolving cyber threats.

Segmentação de mercado

The market is segmented based on various factors, including component, device type, communication module, and region.

Segmentation by Component
Hardware
Software
Serviços

Segmentation by Device Type
Smart Alarms
Smart Locks
Smart Sensors and Detectors
Smart Camera and Monitoring System
Other Device Types

Segmentation by Communication Module
Professional Monitored
Self Monitored

Segmentation by Region
North America – United States and Canada
Europe – Reino Unido, Alemanha, Noruega, Dinamarca, and Rest of Europe
Asia-Pacific – China, Japão, South Korea, and Rest of Asia-Pacific
Latin America – Brasil, México, and Rest of Latin America
Middle East and Africa – Arábia Saudita, África do Sul, Emirados Árabes Unidos, and Rest of Middle East and Africa

In 2022, the software segment held the largest market share of 45.89%, while the services segment is expected to have the highest compound annual growth rate (CAGR) of 16.55% over the forecast period. The software segment encompasses various types of software accessible through different devices for purposes such as video management, security control, access management, device connectivity, alerts, device monitoring, and authorization. The demand for software is increasing due to the rising adoption of smart home security solutions. Software is used to control smart hardware devices, enhancing home security. The use of smart cameras for surveillance has increased in recent years, driving the need for video surveillance software. This software is primarily used in smart home security systems to handle data streaming from security cameras and surveillance equipment, offering a comprehensive view and an effective security system. Technological advancements, including AI, ML, and motion tracking, have further boosted the demand for surveillance software, leading to the development of software with new technologies by market players.

In 2022, the self-monitored segment accounted for the largest market share of 88.46%. However, the professional monitored segment is expected to witness the highest CAGR of 16.57% over the forecast period. The self-monitored segment of the global smart home security market is projected to experience significant growth in the coming years. This can be attributed to its affordability, continuous innovations in self-monitored systems that provide full control to homeowners, and easy installation. The best self-monitored security systems typically consist of standard components such as sensors, a base station, and optional cameras. Self-monitored systems represent a more modern approach to home security, targeting individuals who want some level of security without paying for round-the-clock professional monitoring. The most significant advantage of self-monitored security systems is cost reduction, as they only require one upfront expenditure, and the equipment is owned by the client. Além disso, self-monitored smart home security systems are becoming an ideal solution for homeowners who desire full control over their security without entering into monthly or yearly contracts. These factors are expected to drive the growth of the self-monitored segment in the coming years.

The smart camera and monitoring systems segment held the largest market share of 43.50% in 2022, whereas the smart sensors and detectors segment is projected to witness the highest CAGR of 16.15% over the forecast period. Surveillance systems have gained significant traction in the market, with residential societies and homeowners using them for safety and security purposes. Advanced intelligent surveillance systems, powered by artificial intelligence technologies, pattern recognition, and computer vision, are replacing traditional surveillance systems. These systems can identify abnormal behavior and patterns, enabling high-accuracy monitoring by a few observers across multiple scenarios. The video surveillance market has undergone significant transformation in recent years, shifting from traditional analog video to IP video, resulting in improved processing power and compression algorithms. Smart home monitoring solutions leverage emerging technologies like the Internet of Things (IoT) to offer functions such as electric control, environmental monitoring, indoor monitoring, abnormal alarm detection, and historical information query. The adoption of IP cameras has increased due to the growing demand for high-resolution images and perimeter surveillance. Critical technologies driving the adoption of smart cameras and monitoring systems include CCTVs, command and control systems, private LTE communications, data storage, automatic number plate recognition (ANPR), video analytics, and supporting ICT equipment. Current smart home cameras and surveillance systems in the market can record HD videos and images at a superior resolution of 1080×720 pixels. These cameras are triggered by sounds or motions and enable two-way communication. Additionally, the construction of dwellings under the Pradhan Mantri Awas Yojana in India and the growing adoption of smart home technology and products in the United States are driving the growth of the smart home security market in these regions.

The United States is a prominent market for smart home security in North America. The National Council For Home Safety and Security conducted a study that revealed more than three in five Americans consider security as the top benefit of owning a smart home, with 57% stating that smart home technology products could save them an average of 30 minutes daily. The need for smart locks as part of home security or control systems has led to partnerships between companies in the market. For example, ADT, a security, automation, and smart home solutions provider, partnered with Intrado, a global technology company, to enable additional data sharing with 911 centers and first responders, enhancing the alarm response process. Furthermore, the introduction of smart homes and sensors in the United States has led to energy conservation and reduced household consumption by 20%, according to New-Gen Apps. Thales Group predicts that 63 million U.S. households will have a home security system by 2024. In North America, Vivint Smart Home has introduced new products to enhance the smart home experience, including doorbell cameras, outdoor cameras, spotlights, and indoor cameras. Similarly, EZVIZ, a global smart home security company, launched its battery-powered smart products in Canada, facilitating easy installation and usage of home security appliances and driving the growth of the Canadian smart home security market.

Cenário competitivo

The smart home security market is characterized by a high degree of fragmentation, primarily attributed to the low entry barriers. Among the prominent players in this market are ADT Inc., Honeywell International Inc., Johnson Controls International PLC, Hangzhou Hikvision Digital Technology Co. Ltda, and Abode Systems Inc., among others. To propel industry growth, strategic partnerships and continuous innovations play a vital role. The market is witnessing rapid advancements in terms of technology and features, indicating its dynamic nature and constant evolution.

Key Companies Profiled in this report include Abode Systems Inc., ADT Inc., Amazon.com Inc., Frontpoint Security Solutions LLC, Hangzhou Hikvision Digital Tech Co., Ltd., Honeywell International Inc., Johnson Controls International plc, Simplisafe Inc., Vivint Smart Home Inc., Zmodo Technology (China) Ltda. Corp.

Recent Industry Developments

In December 2022, Alarm.com launched a new feature called Smart Arming for their home security systems. This advanced functionality enables the system to automatically arm and disarm based on user activity, leveraging the power of Alarm.com technology. Users have the ability to specify their preferred arming time for the system during nighttime, typically after 11 p.m., as well as the desired disarming time in the morning, often around 7 a.m. This intelligent feature allows users to seamlessly integrate home security measures into their daily routines.

In the same month, Samsung entered into a collaboration with proptech firm Zigbang to unveil a cutting-edge smart door lock. Equipped with an Ultra-Wide Band (UWB) chip, the Zigbang SHP-R80 UWB digital key door lock represents a groundbreaking innovation. It is set to become the first smart door lock powered by UWB technology that offers touchless access, eliminating the need for direct smartphone interaction. UWB technology employs radio waves similar to Bluetooth or Wi-Fi for short-range communication purposes, facilitating efficient and secure connectivity.

Key Questions Answered

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