Smart home security systems are a hot trend giving consumers control of their home safety, and therefore, the sector is projected to keep growing in the coming years.
According to data acquired by Finbold, the United States smart home security sector revenue is expected to hit $5 billion in 2021. As more people continue to integrate the technology, the revenue is projected to surge 63.99% to $8.2 billion by 2025.
As of 2022, the forecast indicates the revenue will grow 16% to $5.8 billion. The smart home security systems market entails devices like smart locks, cameras, hazard notifications, and emergency calls that are connected to home networks and can be accessed remotely through smartphones, smartwatches, or voice. These systems are incorporated in homes for protection from incidents like burglary, fire incidents, among others.
Driving factors for smart home security systems
The smart home security revenue is expected to keep soaring as consumers prioritize the safety of their homes and families, especially with insecurity threats in residential areas. The growth is powered by an increase in internet penetration alongside smart gadgets.
The increased adoption is also attributed to the emergence of new technologies like the Internet of Things (IoT) and wireless technologies giving prominence to devices like IP cameras for video surveillance. Furthermore, the integration of Artificial Intelligence in security systems enhances more safety. The combination of biometrics, facial recognition, and retina scanning will also drive smart home security revenue growth across the U.S.
Additionally, the growing need for product interoperability and multifunctionality among consumers will likely spur market growth as manufacturers prioritize this emerging need. Consumers are looking for products that protect the home and can also be integrated with other smart home devices. Therefore, security companies are expected to increase the value of their services and offer customers products that fit their needs.
There is also a rise in disposable income that will enable consumers to invest in high-end home security products and solutions. Moreover, consumers, especially the young are preferred solutions that entail advanced features. Notably, emerging real estate projects like apartment complexes will drive the sector’s growth since developers will likely install these systems as part of attracting new tenants. Consumers prefer homes with already installed smart security systems rather than starting from scratch.
In general, the sector still presents more opportunities that will likely spark more demand. For instance, there is still room for the development of sensors. This is creating an opportunity for new players, especially with threats of burglaries and forced entries.
Smart home security sector growth challenges
The expected growth in revenues might, however, face some challenges along the way. For example, smart home security systems attract high installation costs and being a relatively new technology, they also have increased exposure to utilities, maintenance, and repair costs.
Furthermore, there are also concerns about the safety of the information collected by the smart home security systems. In this line, some states like California have rolled out a bill that requires manufacturers of these devices to prevent unauthorized access, modification, or information disclosure.