Berg Insight, the world’s leading IoT market research provider, today released new findings about the market for home and small business security systems.
The market can be divided into three main categories – local, self-monitored and professionally monitored security systems. A local security system only emits an alarm sound to scare off intruders and are not remotely monitored. 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. At the end of 2023, the number of professionally monitored alarm systems reached 36.0 million in North America and 19.0 million in Europe. Growing at a compound annual growth rate (CAGR) of 3.6 percent, the number of professionally monitored alarm systems in North America is estimated to reach 42.9 million in 2028. In Europe, the market is estimated to grow by a CAGR of 4.7 percent to reach 23.9 million alarm systems in 2028.
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, Vivint, Brinks Home (Monitronics) and Sector Alarm; security service companies such as Prosegur, Securitas and G4S (Allied Universal); telecommunications and cable television companies such as Comcast, Telus, Cox Communications, and Altice France; as well as utilities, banks and insurance companies such as EPS (Crédit Mutuel), Crédit Agricole and Groupe IMA.
Traditional home security systems include professional alarm monitoring. DIY security systems typically include self-monitoring as a standard feature and professional alarm monitoring is offered as an optional service. Providers of DIY home security systems include SimpliSafe, Frontpoint, Ring (Amazon), Yale (Assa Abloy), Arlo, ABUS, ERA Home Security, Ooma, Somfy, Scout Security, Canary, Signify, Netatmo, Minut and Wyze Labs. ADT and Verisure are the two largest providers of professionally monitored alarm systems for homes and small businesses in North America and Europe. ADT is only active in the US and had more than 6 million customers at the end of 2023. Verisure is active in 13 European countries and four countries in South America and had more than 5 million customers at the end of 2023.
The market for home and small business security systems in Europe and North America continues to grow steadily.
Martin Apelgren, Principal Analyst at Berg Insight, says:
“The low penetration rate of alarm systems in the residential segment, especially in Europe, indicates that there is a great opportunity for solution providers to expand their businesses.”
At the end of 2023, the penetration rate in the residential segment was about 6.3 percent in Europe and about 21.1 percent in North America. Interactive services, enabling users to remotely arm/disarm the system, view live and recorded video, and create scenes and automations, is now a standard feature of alarm systems.
“Integration with smart home ecosystems and products from different vendors is anticipated to continue to increase going forward, adding significant value for homes and businesses”, concludes Mr. Apelgren.
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