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Indoor Smart Home Security Market – Insights and Analysis

The Smart Home Security Market is a part of the smart home market that includes devices for access control, surveillance and management of indoor residential premises. The different products considered in the smart home security market are smart locks, smart video security and surveillance systems, sensors that include door and window sensors and intruder/burglar alarms, and smart fire safety devices.

Our key findings:

  • The European smart home security market was estimated at $1 billion in 2016 and will reach $5.9 billion by 2022, at a CAGR (compound annual growth rate) of 34.2% during 2017-2022.
  • The UK, Germany, France, Spain, Italy and Nordics collectively are close to 80% of the European market, and Eastern Europe accounts for 14% of the share. 

 

  • High broadband internet penetration and use of smart phones are vital enablers of the growth of the smart home market in general and the smart home security market in particular. The increasing availability of the internet and the increase in the percentage of individuals having the ability to use the internet away from home or work helps customers utilise smart home security products, thus speeding up the adoption of smart home security devices. Media coverage and price reduction in certain smart home products have also led to increased public awareness and interest in the smart home market landscape.
  • The European Union has taken initiatives to increase internet availability to its people during the last decade and also aims to improve internet connection speed during the next decade.
  • Among UK, Germany, France, Spain, Italy, the Nordics, and Eastern Europe, the United Kingdom was the largest region in European smart home security market, accounting for $333.7 million in 2017. This was mainly due to large population base, innovative and fiercely competitive telecom sector, and highest household broadband penetration among all European countries. The UK’s indoor smart home security market is expected to reach $1460.5 million in 2022, growing at an annual rate of 34.3%. The market in all other regions in Europe is expected to grow at more than 33% annual rate to 2022. 

 

Sales channels:

The different sales channels in the European smart home security market are the most important routes to market for smart home security manufacturers. These include:

  • do-it-yourself (DIY) purchasing/ installation,
  • professional purchasing installation, and
  • retail and
  • internet retail.

The DIY segment is projected to be an important segment of the smart home security market. The fact that the customer knows the living place better than anyone and is the best judge for installing devices that can be monitored remotely makes the DIY channel more prominent than the other channels.

 

Focus on the Smart home entertainment market and European smart energy management market:

  • The home entertainment segment of the smart home market has seen the introduction of a range of innovative products during the last half-decade. Integration of information technology and smart entertainment products revolutionized the market space and the products trending currently are miniaturized with a high processing power. Smart home entertainment products such as smart TVs, home theatres, wireless streaming devices and other audio systems can be integrated to be controlled by a smartphone as well.
  • The most important aspect of smart energy management is the effective measurement of energy usage clubbed with a transparent communication mechanism to the customers. In order to implement such transparency, the European Commission in it “Third Electricity Package” committed to an electrical smart meter roll-out target of 80% by 2020. Another aspect of metamorphosing the energy landscape to smart energy landscape is upgrading the electricity transmission and distribution through smart grids. Most Western European countries rank in the top 50 countries in the implementation of smart grids.

Market KPIs are:

  • number of households in the region
  • availability of a stable broadband connection to the households
  • access to internet on a smartphone
  • smartphone penetration rate
  • smart home penetration rate
  • percentage of adoption of security devices within the smart home market.

Apart from these, various indicators such as GDP per capita, consumer spending per capita, mobile phones revenue per capita, power consumption per capita should also be considered.

 

Competition Overview:

The key players are Assa Abloy, Honeywell, Echelon Corporation, ADT, Apigy Inc. (Lockitron), Danalock, Allegion PLC, Aeon Labs, Bosch, Visionic, and Axis. 

 

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Primary research was conducted by ReportLinker in 2018 with senior executives from leading indoor home security companies, industry practitioners, and key opinion leaders.
Secondary research was conducted by ReportLinker in 2018 by mining resources such as industry associations, news sources and blogs, company filings, annual reports, and other publicly available information.