Berg Insight today released new findings about the market for home and small business security systems.
The number of professionally monitored alarm systems in Europe is forecasted to grow at a compound annual growth rate (CAGR) of 4.5 percent, from 17.6 million in 2021 to reach 21.9 million in 2026. In North America, the number of monitored alarm systems is forecasted to grow at a CAGR of 3.0 percent, from 33.6 million in 2021 to 39.0 million in 2026.
Security systems for small businesses and private homes can be divided into three main categories – local, self-monitored and professionally monitored security systems. When activated, a local security system emits an alarm sound to alert the surroundings and scare off intruders. Such systems are not monitored and cannot be accessed from remote.
A self-monitored security system is connected and informs the owner of the premises upon activation by sending a text message, email or push notification through a smartphone app. A professionally monitored security system is connected to an Alarm Receiving Centre (ARC). When the system is activated, the ARC can dispatch a security patrol and contact emergency services.
The traditional home and small business security systems market in Europe and North America is served by specialist home security companies such as ADT, Verisure, Brinks Home (Monitronics) and Sector Alarm; security service companies such as Prosegur, Securitas and G4S; telecommunications and cable television companies such as Comcast, Telus, Cox Communications and Bell Canada; as well as utilities, banks and insurance companies such as EPS (Crédit Mutuel), Crédit Agricole and Groupama.
Traditional home security systems include professional alarm monitoring. Providers of DIY home security systems include SimpliSafe, Frontpoint, Ring (Amazon), Yale (Assa Abloy), Arlo, Somfy, Scout Security, Canary, Minut and Wyze Labs. DIY security systems typically include self-monitoring as a standard feature and professional alarm monitoring services are offered as an option. ADT and Verisure are the two largest providers of professionally monitored alarm systems for homes and small businesses, with 6.3 million and 4.3 million customers respectively at the end of 2021. ADT is only active in the US while Verisure is active in 13 European countries and four countries in South America.
“The home and small business security system market in Europe and North America continues to grow steadily, driven by a shift to interactive systems which provide increased security and convenience for users”, says Martin Backman, Senior Analyst at Berg Insight.
Security cameras are now also commonly part of new home security system installations, as the price for such devices has dropped in recent years and developments of video software has enabled a greater value for home and small business owners.
“Modern security camera solutions can distinguish between humans, pets, vehicles and other objects and notify the user only if there is an actual threat to the premises”, continues Mr. Bäckman.
This provides an extra layer of security as the security system extends to the perimeter of the property.
Mr. Backman, concludes:
“Security and safety are basic human needs and therefore the home and small business security system market is anticipated to stay strong in the coming years despite high inflation and rising costs of living and doing business.”