Berg Insight today released new findings about the market for connected security applications.
The number of monitored alarm systems in Europe is forecasted to grow from 15.6 million in 2018 at a compound annual growth rate (CAGR) of 3.6 percent to reach 18.6 million in 2023. In North America, the number of monitored alarm systems is forecasted to grow at a CAGR of 2.9 percent from 30.7 million at the end of 2018 to 35.4 million at the end of 2023.
Small alarm systems for businesses and private homes can be divided into two main categories – local alarms and monitored alarms. The simplest type of local alarm only reacts to activation by emitting an alarm sound to alert the surroundings and scare off intruders. A more advanced type of local alarm is a self-monitoring alarm. Monitored alarms are connected to an Alarm Receiving Centre (ARC) that can respond to an activated alarm by contacting the police or dispatching a security patrol.
ADT is the leading provider of monitored alarm systems in North America. Vivint and Comcast are other players with well over a million monitored alarms. SimpliSafe and Brinks Home Security (Monitronics) are two other major actors on the very fragmented North American market. Verisure is the leading player on the European market, with monitored alarms in a dozen countries.
The second largest player on the European market for residential home security systems is Sector Alarm which has strengthened its position in Norway and Sweden through several acquisitions. Securitas and G4S are both sizeable players, especially in the northern part of Europe. In the southern part of Europe, Prosegur and EPS are two dominant players. United Technologies Corporation, Stanley Black & Decker and Johnson Controls (acquired Tyco in 2016) are also important players active in both Europe and North America.
There is still a significant growth potential for monitored small alarm systems, especially in Europe where the total penetration reached only 6.4 percent of all businesses and households at the end of 2018.
“The penetration of monitored alarm systems in North America is much higher than in Europe and the corresponding figure in this region was 23.0 percent at the end of 2018”, says Martin Backman, IoT Analyst at Berg Insight. The traditional home alarm service providers are facing increasing competition from telcos, home automation companies and DIY security providers, which brings new innovative offerings to the market.
Mr Backman concludes:
“Alarm systems are becoming more valuable for customers as the scope of offerings are being expanded to include detection of fire, carbon monoxide and water leaks, as well as home automation features such as smart plugs, locks, cameras, lighting and thermostat control.”