The next few years will change the home security system. A few years back it was unbelievable to think that we could control the lights, home appliances, and security systems remotely. Smart home technology is expected to grow very fast.

Image Source       

Another important point to note is that artificial intelligence (AI), machine learning, and the Internet of Things (IoT) will create huge opportunities. Internet of Things is a vast network of vehicles, home use appliances, physical gadgets, and other electronics, sensors and connectable software which can be remotely monitored and controlled.

There is an increasing need for security among independent homeowners. Developed markets like the US, Canada, Germany, UK, Australia, among others, will be the major markets for the Home Security Market. With the discretionary income among the developed countries increasing they are ready to spend on keeping their homes safe. Another reason is that there are increasing cases of thieves, burglary, terrorist attacks in recent years which had made the people, as well as the government, to invest in this sector.

The growth in the home security market is helped by IoT and wireless technologies. Video surveillance security systems are currently holding the largest share in the home security market. Region wise Asia Pacific is expected to grow faster than the developed markets mainly due to lower penetration and also due to improved cost of living in this region.

With an increasing number of companies jumping into the home security market the costs of the products have also been reduced which makes consumers affordable. The home security market is no more luxury it’s become an essential part of everyone’s life. Let’s look at some of the home security system products.

Local Alarms

A local alarm works with sensors. It can be placed at your doors or windows. It could be a wired alarm system or wireless system. There are some which will give a bell while others can send you messages immediately. Nowadays, a lot of consumers prefer notifications. Some of the important alarm companies in the USA are Protect America, ADT, Stanley CSS, Simplisafe, Protect One, Think Protection among others. ADT (NYSE: ADT) is a publicly traded company. It is one of the most recognized brands in the US home security industry. The company has about 7 million customers in the US.

Think Protection is also gaining a lot of popularity in recent years. Its cost-effective home alarm system is backed by excellent customer service which makes the company as one of the fastest growing alarm companies in North America. Some of the features include smart home control, alerts & notifications, home monitoring, 24-hour battery backup, sensors, wireless technology, home monitoring, mobile app, among others. There are other new entrants like Ring. Amazon bought Ring for $1 billion. Ring’s security devices work well with Amazon key. Ring devices can integrate with Amazon’s voice-controlled assistant Alexa. Users of Amazon echo can say “Alexa, show my front door” to receive the live feed activities.

There are a lot of companies which would like to take a pie of home security market. Arlo Technologies (NYSE: ARLO) is a home automation company, which makes wireless security cameras. Arlo was considered a brand by Netgear, prior to its initial public offering on the New York Stock Exchange in August 2018. The company which initially focused on cameras has also added doorbell to its portfolio. The sales are growing double digit. However, shares have not performed well.

Technologies Worth Attention: RFID

Radio-frequency identification (RFID) based alarm systems use RFID tags or cards to identify those who enter your home or office. Each set of RFID tags is unique and anyone who tries to enter without the correct RFID tag will trigger the alarm. A number of manufacturers including Yale, Kerui, and ADT are promoting these systems at present and they are gaining in popularity particularly in office environments.

Fire Detection Alarms

Most commercial and business premises are required to have a fire detection system as a part of their insurance policy. Many homeowners have also installed smoke detectors to protect their families in the event of a fire. Recent advances in technology have seen individual smoke detector sensitivity adjustment, and drift compensation becoming increasingly standard. More recently there has been a growing trend towards connected fire alarms and carbon monoxide in homes which use an app to alert homeowners if the alarm is triggered while they are away.

Video Surveillance Security Systems

In the last few years, video surveillance has come to hold the largest share of the security system market in the US and a growing share of the overseas market. While video surveillance in public areas and commercial establishments has been common practice for many years the growth of video surveillance in private homes has grown is a more recent phenomenon. Monitored video surveillance is frequently beyond the price range of homeowners but the development of the Internet of Things (IoT) has permitted owners to stay in connect with their homes and monitor their properties remotely and even to call the police if needed.

Biometric Systems

It used to be thought that biometric security systems were only for large corporations or government offices but today they are being widely sold to the general public. Relying on fingerprint, voice recognition, or a retinal scan these systems are now also being fitted in residential properties particularly in developing markets which suffer from a higher crime rate.

Conclusion

With increasing integration of cloud technologies into home security solutions offered by existing brand leaders and numerous startups launching successful IPOs the home security niche looks set to keep growing and is certainly worth investors attention. The market for home security products is expected to grow at a compounded annual growth rate (CAGR) of 10.40% in the next five years.