Report

The Security Services Market for Smart Homes Industry is expected to register a CAGR of 24.1% during the forecast period.

Smart home security devices can be connected to Wi-Fi and accessed from anywhere using smart devices, such as smartphones, smartwatches, or voices. The security services market for smart homes is driven by the increasing crime rates across the world, which is forcing people to focus on security and safety systems, especially in residential areas.

Artificial Intelligence (AI) has the potential to play a major role in boosting innovation in the home security and monitoring market. In addition, AI combined with machine learning could reduce the chances of false alarms, enhance detection of anomalous activities and performance of video analytics, and offer better video verification and surveillance capabilities. The introduction of this combination in security and monitoring systems can attract more consumers.

Nowadays, customers prefer multiple solutions in one package to access the most budget-friendly solution. Thus, vendors have been rolling products keeping in mind this kind of demand. For instance, in August 2020, Hero Electronix introduced 'Qubo Shield, a home security solution, which provides end-to-end security across all aspects of the home. It guards against external threats, such as theft or any safety threat, such as fire and gas leakages.

Among all the applications, video surveillance has been gaining the maximum market share. Surveillance systems implemented at homes have varied applications, such as monitoring and access control. These systems are also equipped with features, such as motion detection and night vision. With the increasing rate of crimes, video surveillance is expected to play a significant role in preventing crime, primarily due to the threat of being detected.

COVID-19 has seriously impacted the growth of the security services for the smart home market. The impact of COVID-19 has been significantly adverse, as supply chain disruption in regions such as China has ended in a decline in the need for home security systems. The reduction in the number of latest construction projects and manufacturing plants' closing are determinants influencing the demand globally.

For instance, various home security systems vendors are headquartered in Hubei province, which is one of the pandemic epicenters, thereby affecting domestic vendors such as ZKTeco, Hikvision, and Dahua with labor deficits and production obstructions throughout the country. The coronavirus's impact on the global supply of security equipment has adversely affected the growth of the market.

Smart Home Security Services Market Trends

Video Surveillance systems are expected to register significant growth in forecasted period

Video Surveillance systems include Security Cameras, Monitors, Storage devices, etc. Advances in technology have allowed for major advancements, along with significant reductions in costs, in video surveillance camera quality, recording capability, and, more importantly, affordability, which is the major driving force for security cameras.

Security cameras are the central component of all security systems. One of the most popular kinds of video cameras is IP Camera, which has been popularly marketed as a network or internet camera and provides live video and audio feeds that the user can access remotely using an internet browser. An increasing number of smart home devices shipments are directly owing to the demand for security systems to be implemented in the devices.

However, wireless security cameras have grown in popularity due to their adaptability, versatility, and ease of use. They are easy to install, drastically reducing installation costs since they do not require lengthy (and expensive) cables or professionals to set them up. This handy feature allows users to mount the cameras in places, which are not accessible to regular CCTV cameras.

Most of the Wi-Fi cameras provide a live video feed for free but require the user to pay a monthly subscription fee to view recorded footage stored in the cloud. A user pays more if he/she has multiple cameras connected to the service. Payment also depends on how long the user wants the CCTV footage stored. In August 2020, Arlo introduced an entry-level, wireless home security camera, which packs everything a basic user will need into a simple, user-friendly unit at an affordable price. It offers a narrower field of view at 130 degrees. There is also support for the two major smart assistants at home - Amazon Alexa and Google Assistant.

In the same month, Google paid USD 450 million for a 7% stake in home and business security provider ADT. The partnership will lead to ADT using Nest's internet-connected cameras, as well as another device called the Nest Home Hub that comes with an internet-connected camera as part of its customers' security systems.

However, the security cameras can be used for the unintended purpose (and in violation of end-user license agreements), which can be illegal under federal and state criminal laws, as well as subjecting abusers to civil liability. As per the latest research by Queen Mary University of London (QMUL) and the Chinese Academy of Science, using data provided by a large Chinese manufacturer of Internet Protocol (IP) security cameras, it was concluded that some popular home security cameras could allow the potential burglars to look at data uploaded by the camera and work out when the users have left the building.

North America witnesses significant growth opportunities in the market

Smart homes are on the rise, with United States households using smart home technology such as connected cameras (highest demand), video doorbells, connected light bulbs, smart locks, and smart speakers, among others. According to the US Department of Energy, the buildings sector accounted for about 76% of the electricity used, resulting in a considerable amount of associated greenhouse gas (GHG) emissions, thereby making it necessary to reduce energy consumption in buildings to comply with the national energy and environmental challenges and decrease costs to building owners and tenants.

According to the New York State Energy Research and Development Authority (NYSERDA), enabling smart technologies and real-time energy management systems can decrease costs by an average of 15% and improve the bottom line by creating an ecosystem that reduces energy waste.

Moreover, with the COVID-19 impact, multiple energy management software providers extend their services beyond energy management systems by building health assessment solutions. For instance, in 2020, Honeywell launched an integrated set of solutions to help building owners improve the health of their building environments, along with energy efficiency. These solutions further help building owners operate more cleanly and safely and also comply with social distancing policies.

The surveillance system is an essential part of any modern automated home, which introduces intelligent analysis of person activity to enhance the security system at home. Further, smart home technology can detect lock picking or tampering attempts and automatically freeze the deadbolt into a locked position in response.

Moreover, players focus on expanding the solution through acquisitions, which significantly raises the market growth. Telus Corp. (a Canadian firm) has expanded its security business by buying the local operations of ADT Inc., which is focused on providing SmartHome Security, supporting a strategy of using its PureFibre networks to enhance the connected home.

Smart Home Security Services Industry Overview

The security Services market for smart homes is fragmented. Various established international brands, domestic brands, as well as new entrants, form a competitive landscape. The major players are increasingly seeking market expansion through various strategic mergers and acquisitions, innovation, increasing investments in research and development.


- June 2021: ADT Inc., one of the largest home security companies in the U.S., filed a U.S. patent-infringement complaint seeking to block imports of Vivint Smart Home Inc. products over the growing American market for smart-home technologies. The company claims Vivint's home security monitoring and automation control panels infringe two patents for 'smart home integration, data collection, and control panel functions and interfaces, among other capabilities and features.
- March 2020: Vivint Smart Home introduced its AI-powered Doorbell Camera Pro with a 180-degree vertical and horizontal field of view, along with a 1:1 aspect ratio that can intelligently detect packages and protect from theft and other potential threats. It provides homeowners with peace of mind by helping to prevent crimes before they happen.


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