Residential Security Market is growing rapidly over 8.53% of CAGR and is expected to reach at USD 44.8 billion by the end of forecast period. Residential Security has become a necessity in recent times owing to the increased crime rate and accidents. Security systems that are capable of detecting smoke and fire, burglar activities, health emergencies are increasingly deployed in the residential sectors. Increasing economic growth in the developed countries and awareness towards the advanced technologies has propelled the builders and public to install Residential Security systems.
Installing fire sprinklers and fire extinguishers have become a necessity in large commercial properties and residential areas. The commercial sectors require a higher security system owing to the larger functional area. The recent reports that state over 96% of the fire threats are controlled in the early stages by the quality fire sprinklers have encouraged the residents to deploy security systems. Residential Security systems cover a wide variety of applications like live streaming to monitor pets or children, smoke detectors, and fire detectors. The other advantages of installing Residential security systems include ease in recovering house insurance policies, ease of operations, and accessibility.
COVID 19 Analysis
The governments of several governments have imposed stringent restrictions on the movement. The IT sectors have introduced work-from-home culture in their companies; hence a large population is staying indoors in recent years. This has potentially reduced the theft and break-ins in recent years. The France government has stated that the theft percentage has dropped by 44% in March 2021. Such factors have adversely impacted the Residential Security market.
Like other industries, the Residential Security market is also witnessing a sharp decline owing to the reduced workforce and disrupted supply chain due to COVID 19. Also, construction activities have been reduced in recent years to combat the crisis. Hence the builders have withdrawn from collaborating with the Residential Security system manufacturers and suppliers.
Additionally, China is considered as the leading manufacturing country of the home security systems, the labor shortages in the country have significantly affected the other countries.
The increasing innovations in Security systems have brought in attractive features to the security systems and offer excellent controls. The technical glitches are corrected and refined technology and smart features like controlling the thermostat, air conditioning, ventilation, and lighting have attracted huge crowds towards the Residential Security Systems. As the developed countries are looking for solutions to conserve energy, the advanced residential security systems are capable of operating with minimal energy expenditure and monitor the overall energy consumption. Such attractive features have propelled the developed countries to influence the residents to implement the Residential Security systems.
The wireless technologies and miniaturized sensors have increased the Residential Security Market demand. The increasing number of internet, tablet, and smartphone users have paved the way to adopt Residential Security systems.
The growing population and the changing trends in implementing smart devices are considered as the primary opportunity for the Residential Security market to grow. Growing urbanization and industrialization has introduced the comfort of living in the developed countries. The disposable income of the residents propels them to deploy quality Residential security systems for a secured feeling. Additionally, the Residential Security systems increase the overall value of the residential property.
Currently, the higher installation costs of the security systems are handled by deploying DIY solutions. The wireless DIY security components that are available at affordable rates are highly preferred by the residents of developing countries. These solutions do not require a skilled man force or department for monitoring or installation.
Higher installation costs and higher ownership costs are the primary restraints of the Residential Security market. The COVID-19 has significantly affected the global economy, the employment loss, decreased income rate in the developing countries have made the residents focus on the primary criteria. This has significantly reduced the Residential Security market value in those regions.
The requirement of expensive hardware and huge storage systems are also hindering the Residential Security market growth.
Increasing crime rates despite highly technical security systems have made the public hesitate in investing in a security system. The maintenance and higher initial costs incurred that adds to the construction and implementation costs are hindering the Residential Security Market growth.
Continuous monitoring and management of the digital data and time consuming analytic process and skilled manpower to address the crime issue are difficult. Faulty hardware and improper maintenance consume more time and energy. Alarms that are triggered falsely and false interpretations are some of the major challenges faced by the Residential Security market.
Cumulative Growth Analysis
The high-tech cameras embedded with sensors capturing audio and video are primarily deployed in several residential areas. The wireless technologies that operate at minimal power, miniaturized sensors, and actuators have propelled the Residential Security Market growth in recent years. The technological advancements in the sensors and motion sensors that are capable of discriminate between animals and human intrusion have increased the scope of the market.
Value Chain Analysis
The necessity for the Residential security system has increased in the developed countries as there is an increase in the employment rate. Every individual in the household is employed and hardly stays at home. These factors have increased the risk of burglar or any intrusive activities in the residential sectors. Other than theft and intrusive activities, home security systems defend residential areas from fire or any other potential threats.
The diminishing cost of security cameras and other smart security devices accompanied the advancement of technologies to fuel the Residential Security Market growth. The automatic sprinklers and fire extinguishers have attracted the potential builders of the residential properties. The residential communities built by the leading builders offer technically advanced amenities to attract the public. Advanced security systems are the primary option considered by the public in those residential communities. Increasing constructional activities owing to the rapidly increasing population is also considered as the primary reason for the Residential Security Market growth.
Based on Systems
Based on Services
Based on Security
Based on Home Type
Among several countries, Asia-pacific, Northern America, Europe are considered as predominant regions concerning the Residential Security market. Asia-pacific is showcasing favorable conditions for the development of the Residential Security market. Northern America and Asia-pacific showcased the market value of USD 10.1 billion and USD 12.2 billion respectively in the year 2018 and are expected to grow in the forecast period owing to the rise in security concerns across the regions. An increasing number of potential manufacturers in those regions fuel the overall growth of the Residential Security industry.
Countries that are adapting the smart city trends and developed countries are upgrading their infrastructure and lifestyle in recent times owing to the high disposable income rate. The advancements in the video management sector and technologies like IoT and cloud services have fueled the Residential Security Market growth in the developed countries. The governments of several countries are hugely investing in the smart cities development, these factors are considered as the primary reason for the growth of the Residential Security market.
The miniature pocket drones that are capable of flying over 20 feet are utilized in the critical sectors to capture identification information of the crime. The system is integrated with a bio-metric scanning system that protects the device from theft or malpractice. The recharge system of these drones is advanced and can be controlled using radio controllers with a smartphone and a USB port.
Smart security systems deploy cloud storage which prevents any sort of malpractice during the crime. Cloud-based functioning eliminates the software issues which are generally complex in traditional systems. The self-monitoring, user-friendly operations enable the operators to adapt to the technology with minimal training. The ability to operate them from remote places is the primary advantage of cloud-based surveillance systems.
This report has covered
Frequently Asked Questions (FAQ) :
Disruptive technologies, such as IoT and digital transformation are observed as prime drivers of the residential security market.
Honeywell International Inc. (U.S.), ASSA Abloy AB, Tyco International Ltd., and Allegion are some notable players of the residential security market.
Smart locks, fire sprinklers and extinguishers, sensors, security alarms, and security cameras are residential security products. The security cameras segment can thrive at 9.61% CAGR by 2023.
Audio-video surveillance, fire protection, home integrated system, access control management, and alert system are residential solutions. The audio-video surveillance segment of market can thrive at 9.35% CAGR by 2023.
The APAC residential security market can value at USD 12.2 billion by 2023.
Ongoing market trends, limitations, and dynamics of key players are discussed in the report.
Developments bought by key players in their products can strengthen customer base that can favor the residential security market.