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 number of professionally monitored alarm systems in Europe is forecasted to grow from 16.8 million in 2020 at a compound annual growth rate (CAGR) of 4.0 percent to reach 20.4 million in 2025. In North America, the number of monitored alarm systems is forecasted to grow at a CAGR of 2.4 percent from 32.3 million in 2020 to 36.4 million in 2025.
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 remotely. 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. 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.
In North America, ADT is the leading provider of professionally monitored alarm systems with 6.5 million residential and business customers at the end of 2020. ADT is followed by Vivint, Comcast, SimpliSafe and Brinks Home Security (Monitronics), all with between 900,000 and 1.7 million monitored alarm system customers at the end of 2020. Following the acquisition of ADT Canada, the telecommunications company Telus has emerged as the leading provider of home security systems in Canada with around 0.7 million customers at the end of 2020.
In Europe, Verisure is the clear market leader with a total of close to 3.8 million residential and small business customers. The company is one of the few players that has a significant customer base in several European countries. The second and third largest players in Europe are Sector Alarm and EPS Télésurveillance (Crédit Mutuel), both with more than 500,000 monitored alarm systems at the end of 2020. Additional Europe-based companies include Securitas, Prosegur and G4S (Allied Universal).
Martin Backman, Senior Analyst at Berg Insight, says:
“There is currently a major technology shift happening in the home and small business security systems market that creates opportunities for manufacturers and service providers.”
Millions of alarm systems relying on PSTN and 2G/3G networks need to be replaced as these networks are gradually being shut down in North America and Europe during the next few years. Interactive security systems, enabling remote access and control of the system using a smartphone, are increasingly common and are now estimated to account for the majority of new installations in both regions.
“Interactive security systems also enable smart home devices and video cameras to be added to the system, providing additional convenience and peace of mind for homeowners”, concludes Mr. Backman.