The intelligent home security market is projected to grow at a CAGR of 23.27% during the forecast period to reach US$12.846 billion by 2026, from US$2.970 billion in 2019. The prime reason driving the market growth for an intelligent home security system is the rising construction of smart homes for a better standard of living. Home security systems are required to protect the residential area from unwanted threats. Furthermore, increasing internet penetration coupled with rising internet-of-things technology has enabled the enhancement of these security systems, which is anticipated to create robust demand in the industry. growing multi-complex and society living system has raised security concerns, and hence of intelligent home security systems.
Raised standard of living and increased disposable income has led to the adaption of technology in everyday life, including security systems at home for security as well as convenience. The rising crime rate and growth in the geriatric population have raised serious concerns and led to the adoption of intelligent security systems at home. Technological advancement in the industry is expected to attract consumers. The factors are expected to play a crucial role in the market growth of the intelligent home security industry. However, significant installation, maintenance, and miscellaneous costs associated with the technology are predicted to hinder market growth, particularly in low and middle-income countries.
With the increased population, demand in the residential construction industry is anticipated to shoot up. Smart homes, a major end-user of intelligent home security system, accounts for a significant share of the residential construction market.
The prime factor which is expected to drive lucrative growth in the intelligent home security market is the rising construction of smart homes. With the rise in population, demand for smart homes is expected to surge at a significant level. The United States predicts that the global population will increase to 9.5 billion by 2050, from 7.5 billion in 2019.
population, estimates, in billion.
The population growth is expected to drive demand for residential construction, including smart homes. Further, with technological advancement, consumers today prefer smart homes having various advanced technology, over the traditional home. It is estimated that smart home construction will grow at a CAGR of around 20% between 2021 to 2025. Positive growth in the industry is expected to derive promising growth in the intelligent home security market.
Furthermore, increased smart home and smart cities construction projects across the Asia Pacific region are projected to escalate the market. In India, the government has recognized 99 cities that have the potential to become smart cities and contribute significantly towards the GDP. These cities are under planning and adoption of advanced technology, including smart home devices, that is expected to boom the domestic intelligent home security market. Similarly in China, the government invested US$255 billion in the reconstruction of Shantytown, which is expected to renovate/ reconstruct 6 million households, upgrading them with smart home devices. In Saudi Arabia, the construction of King Abdullah Economic City, which is a US$100 billion projected, is expected to increase the market prospects.
Hence, it is forecasted that lucrative growth in the residential construction industry, especially the smart home industry, will drive market growth during the forecasted period. Furthermore, it is expected that rising internet penetration and technological advancement in the industry will open new prospects for the market.
North America and the European regions are projected to hold a dominating share of the market. However, the Asia Pacific intelligent home security market is expected to grow at the fastest rate. But the significant cost is anticipated to constrain the market growth in many low-income countries.
Based on geography, the global intelligent home security market is segmented into North America, South America, Europe, Middle East and Africa, and Asia Pacific region. During the forecasted period, the North American and European intelligent home security markets are expected to dominate the market owing to the wider adoption of technology and rising construction of smart homes. But, the Asia Pacific region is predicted to grow at the fastest rate with surging internet and technology penetration. However, due to significant costs may hinder the market growth in low-income countries.
global intelligent home security MARKET, by geography, 2026
Source: Knowledge Sourcing Intelligence Analysis
The coronavirus pandemic negatively impacted the intelligent home security market. nationwide lockdown resulted in a halt in the construction industry, which decreased the market demand.
2021, Acquisition. Allegion plc, Dublin-based global leader in home security system, acquired assets of Belgium-based, Astrum Benelux B.V., a European Software Expert, to enhance its seamless access control technology. The company also acquired assets of Netherland-based WorkforceIT for effective and efficient workforce management technology.
January 2021, Acquisition. Allegion acquired Yonomi, a technology company, to expand its portfolio on seamless access technology. The latter is an innovative firm in the IoT cloud platform.
January 2019, Product Launch. Dublin-based Allegion plc announced the launch of the company’s first-ever, WiFi-enabled deadbolt, Schlarge® Encode Smart WiFi Deadbolt. The technology is capable of working with Amazon and Ring devices.
|Market size value in 2019||US$2.970 billion|
|Market size value in 2026||US$12.846 billion|
|Growth Rate||CAGR of 23.27% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Component, Solution, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Johnson Controls, Honeywell International Inc., Robert Bosch Smart Home GmbH, Alarm.com Incorporated, Nexia, Allegion, Assa Abloy, Nortek Control|
|Customization scope||Free report customization with purchase|
Key Market Segments