The global residential security systems market will grow steadily over the next four years, according to a recent report released by Technavio. A rise in the number of threats to residential buildings is cited as a primary growth driver.
The global residential security systems market will grow steadily over the next four years and will post a combined annual growth rate of more than 7 percent by 2020, according to a recent report released by Technavio.
The market research firm attributes the growth to many factors, including a rise in the number of threats to residential buildings. “As a result of the increasing incidences of thefts and unauthorized access to individual homes and residential buildings, end-users have started equipping residential buildings with special platforms that will help them access electronic devices at home through mobile devices such as smartphones, tablets computers, and laptops from remote locations,” the report said.
Another growth driver is the emergence of the Internet of Things, a trend that will gain further traction in the residential security systems market in the next four years, Technavio said. “Home security products such as access control, intruder alarms, and video surveillance are self-contained and are configured only for specific purposes. The use of IoT can improve existing security features as it can provide data that will help in predicting security features that respond to situations relating to property or people,” it said.
According to Technavio, vendors such as Cisco Systems and Tyco Security Products have already started offering home security solutions that detect changes in heat, sound, and motion and alert customers under the IoT framework, which analyzes this data and automatically adjusts the temperature, lights, and other electronics as preferred by users.
Competitive landscape and key vendors
According to the report, the market has is characterized by the domination of a few major home security companies, who are pitted against a considerable number of private labels and startups, especially in the DIY residential security products market. This has intensified the already fierce competitive environment. “To sustain the competition and gain a considerable market share, vendors have the need to expand their portfolios and distinguish their product and service offerings through a clear and unique value proposition,” the report said.
The study cited the following as leading vendors in the market: ADT Security Services, ASSA ABLOY, Bosch Security Systems, Honeywell International, Nortek Security and Control and Tyco Security Products.
The report further noted the security cameras segment was the major revenue contributor to the home security systems market during 2015. “Technological innovations such as replaceable and rechargeable batteries and Wi-Fi connectivity play a significant role in propelling the demand for security cameras, it said. “Video quality is also a major buying criterion among end-users and vendors have started introducing new products to eliminate technical glitches such as lag times and blurriness. The introduction of IP-based cameras and remote monitoring using smartphones will also augment the market segment’s growth prospects.”