Question

MARKETING QUESTION: Using a chart, develop and illustrate the market segmentation scheme for a home security system (like Control 4).

Answer 1

The home security system market was valued at USD 40.66 billion in 2017 and is expected to reach USD 74.75 billion by 2023, at a CAGR of 10.40% during the forecast period. The base year considered for this study is 2017, and the forecast period is 2018–2023.

Objectives of Study

To define, describe, and forecast the global home security system market, in terms of value, by home type, system type, offering, and geography

To forecast the market size for the concerned segments with respect to the 4 key regions—the Americas, Europe, Asia Pacific (APAC), and Rest of the world (RoW)

To provide detailed information regarding major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)

To analyze the value chain to understand the flow of activities performed by various companies to develop and deliver the products to consumers

To analyze the micromarkets with regard to industry trends and prospects, and their contribution to the total market

To analyze opportunities in the market for stakeholders by identifying the high-growth segments of the home security system market and provide details of the competitive landscape for market leaders

To profile the key players and comprehensively analyze their market position in terms of ranking and core competencies

To analyze the competitive developments such as partnerships, collaborations, mergers and acquisitions, and product launches and developments in the home security system market

During this research study, major players in the home security system market in various regions have been identified, and their offerings, regional presence, and distribution channels have been understood through in-depth discussions. To find the overall market size, top-down and bottom-up approaches have been followed to estimate the sizes of other individual markets by using percentage splits from secondary sources (such as Hoovers, Bloomberg Business, Factiva, and OneSource) and primary research. The entire procedure includes the study of the annual and financial reports of the top market players and extensive interview of industry leaders such as CEOs, VPs, directors, and marketing executives for key insights (both qualitative and quantitative) pertaining to the market. The figure below shows the breakdown of primaries on the basis of the company size, designation, and region conducted during the research study.

Major players in the home security system market are ADT (US), Honeywell (US), Johnson Controls (US), HANGZHOU HIKVISION DIGITAL TECHNOLOGY (China), ASSA ABLOY (Sweden), SECOM (Japan), Robert Bosch (Germany), United Technologies (US), Godrej & Boyce (India), Alarm.com (US), Allegion (Republic of Ireland), Control4 (US), Schneider Electric (France), Legrand (France), ABB (Switzerland), Comcast (US), STANLEY Convergent Security Solutions (US), Nortek Security & Control (US), FRONTPOINT (US), and Vivint (US).

Target Audience:

Companies competing in the home security system market

Companies involved in the ecosystem of security solutions

Key security system manufacturers

Software solution providers

Network providers

System integrators

Housing developers

Retail distributor

Government, financial, and research institutions as well as investment communities

Analysts and strategic business planners

Research and consulting firms

Home security system Market Segmentation:

Market, by Home Type

Independent Homes

Condominiums/Apartments

Market, by System Type

Professionally Installed and Monitored

Self-Installed and Professionally Monitored

Do-It-Yourself (DIY)

Market, by Offering

Products

Fire Protection Systems

Video Surveillance Systems

Access Control Systems

Entrance Control Systems

Intruder Alarms

Services

Security System Integration Services

Remote monitoring Services

Fire Protection Services

Video Surveillance Services

Access Control Services

Market, by Geography

Americas

US

Canada

Mexico

Brazil

Rest of Americas (RoA)

Europe

UK

Germany

France

Rest of Europe (RoE)

Asia Pacific (APAC)

China

Japan

South Korea

India

Rest of APAC (RoAPAC)

Rest of the World (RoW)

Middle East

Africa

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to the company's specific needs. The following customization options are available for this report:

Detailed analysis and profiling of additional market players (up to 5)

Immediate customers market

Get more insight on other verticals of Semiconductor and Electronics Market Research Reports & Consulting

According to MarketsandMarkets, the home security system market is expected to reach USD 74.75 billion by 2023 from USD 45.58 billion in 2018, at a CAGR of 10.40% during the forecast period. The growth of the market can be attributed to the emergence of IoT and wireless technologies, and increasing customer awareness .

Video surveillance security systems are likely to hold the largest share of the home security product market by 2018. Among all products, a video surveillance system records all the activities in the vicinity; hence, a user can keep a watch on any untoward activity and alert the police regarding the same; a recorded video footage also serves as evidence in the post-crime investigations. One of the main benefits of the video surveillance system is that it ensures full-time monitoring in both the densely populated areas as well as in remote areas. The surveillance cameras available on the market use AI and deep learning to empower the security with more reliability and accuracy. For instance, Hangzhou Hikvision Digital Technology (China) launched DeepinView Camera Series with the deep learning feature to provide accurate and consistent video content analytics (VCA) performance.

The market in APAC is expected to grow at the highest CAGR during 2018–2023. APAC is a technologically and economically developing region, and countries such as China, Japan, and South Korea are driving the overall growth of the home security system market in this region. The technological and economic advancements in the region are expected to drive the overall demand for security systems. In this region, many governments have set the safety norms for various sectors. For instance, the fire hazard is a major concern in this region, and the rapid development of the construction and real estate sector is expected to drive the residential fire protection system market in the coming years.

Services are likely to hold the largest share of the home security system market by 2018. The installed security products should be backed with proper services, such as maintenance and integration, for the smooth and continuous working of these products. Security systems are useful only when they are properly engineered, designed, installed, serviced, and maintained; hence, the services segment is estimated to hold a larger size of the market during the forecast period.

The high cost associated with the installation and maintenance of home security systems is the key factor limiting the growth of this market. Customers are increasingly becoming aware about the benefits of home security systems; at the same time, they are skeptical of investing in it since the prices of security systems are still not affordable for many consumers. Expensive hardware and the high cost of ownership hinder the adoption of home security systems.

Major players in the home security system market are ADT (US), Honeywell (US), Johnson Controls (US), HANGZHOU HIKVISION DIGITAL TECHNOLOGY (China), ASSA ABLOY (Sweden), SECOM (Japan), Robert Bosch (Germany), United Technologies (US), Godrej & Boyce (India), Alarm.com (US), Allegion (Republic of Ireland), Control4 (US), Schneider Electric (France), Legrand (France), ABB (Switzerland), Comcast (US), STANLEY Convergent Security Solutions (US), Nortek Security & Control (US), FRONTPOINT (US), and Vivint (US).