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 4.4 percent, from 18.2 million in 2022 to reach 22.6 million in 2027.
In North America, the number of monitored alarm systems is forecasted to grow at a CAGR of 3.4 percent, from 34.8 million in 2022 to 41.2 million in 2027.
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, Vivint, 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 Altice France; 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, among others, SimpliSafe, Frontpoint, Ring (Amazon), Yale (Assa Abloy), Arlo, Somfy, Scout Security, Canary, Signify, Netatmo, 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 6.4 million and 4.8 million customers respectively at the end of 2022. ADT is only active in the US while Verisure is active in 13 European countries and four countries in South America.
“An increasing number of home and small business owners in Europe and North America discover the value of interactive security systems and professional monitoring services to safeguard their premises”, says Martin Backman, Principal Analyst at Berg Insight.
Additional security products and services, such as water leak detection, fire and carbon monoxide detection and remote live video monitoring are now more commonly included in the offering from service providers to provide further peace-of-mind for customers.
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.”
