The Home and Small Business Security System Market – 10th Edition

The Home and Small Business Security System Market isthe tenth consecutive report from Berg Insight analysing thelatest developments on the small alarm market in Europe andNorth America.

This strategic research report from Berg Insight provides youwith 115 pages of unique business intelligence including 5-yearindustry forecasts and expert commentary on which to baseyour business decisions.

Highlights from this report:

Insights from 30 executive interviews with market leadingcompanies.
New data on alarm system adoption by country and segment.
Comprehensive overview of the home and small business alarmsystem value chain.
Detailed profiles of key players on the European and NorthAmerican security markets.
In-depth analysis of market trends and key developments.Market forecasts by region, lasting until 2024.

This report answers the following questions:

Who are the leading providers of professionally monitored homeand small business alarm systems?
Why are alarm system providers investing in smart hometechnology?
Are DIY home alarm systems providers a threat to the traditionalplayers?
What is the potential market size for cellular IoT communicationsin the alarm systems industry?
Which are the leading providers of secure alarmcommunications services?
What is the market value of the alarm system industry in Europeand North America?
What are the latest trends and developments on this market?


Executive summary

The private security sector is a global industry comprising services and solutions such asmanned guarding, alarm system integration and monitoring, cash handling as well as variousservices like consulting and private investigations. The global market value of the securityindustry reached an estimated € 170 billion in 2019. The more mature European and NorthAmerican markets still dominate the industry with a combined market share of around 60percent. The long-term annual growth rate is estimated to between 2 and 4 percent in Europeand North America. Historically, annual growth has exceeded GDP by a few percentagepoints each year. However, the mature markets in Europe and North America are no longergrowing faster than GDP, but rather at the same rate as GDP.

Security systems for small businesses and private homes can be divided into three maincategories – local, self-monitored and professionally monitored security system. Whenactivated, a local security system only emits an alarm sound to alert the surroundings andscare off intruders. Such systems are not monitored and cannot be accessed from remote. Aself-monitored security system is connected and informs the owner of the premises uponactivation by sending a text message, email or push notification. A professionally monitoredsecurity system is connected to an Alarm Receiving Centre (ARC). When the system isactivated, the ARC can respond by dispatching a security patrol and contact emergencyservices. Professionally monitored security system are dependent on reliablecommunications networks. The latest generation of such systems uses dual wired andwireless network connections in order to minimise the risk of communications failure.

The North American market for home and small business security systems is larger than theEuropean market. There were an estimated 31.7 million active monitored alarm systems inthe US and Canada at the end of 2019. The overall penetration rate among around 150million households and businesses was 21.0 percent. In the EU28+2, there were about 16.5million active monitored alarm systems at the end of 2019. This corresponds to an overallpenetration rate of 6.7 percent among 245 million households and small businesses.Fundamental market data thus indicate a significant growth potential for alarm systems on theEuropean market, especially in the residential segment where the current penetration is only5.6 percent. However, growth on this market is anticipated to vary considerably from countryto country in the next few years. The advanced Nordic market is forecasted to grow thefastest, while other major markets in southern Europe will show less growth due to highmarket fragmentation and fewer specialist alarm service companies that actively marketsolutions. New entrants to the market in the form of various providers of home automationsystems are also creating consumer awareness, especially in North America. However, manyof the security features included in home automation solutions rely on self-monitoring withoutprofessional monitoring services.

Companies from a wide range of industries offer home and small business security systemson the European and North American markets. The traditional home security systems marketis served by specialist home security companies such as ADT, Verisure, Brinks HomeSecurity (Monitronics) and Sector Alarm; security service companies such as Prosegur,Securitas and G4S; telecommunications and cable television companies such as Comcast,Telus, Cox Communications and AT&T; as well as utilities, banks and insurance companiessuch as EPS (Crédit Mutuel), BNP Paribas and Groupama. The DIY home security systemsare provided by start-ups such as Frontpoint, SimpliSafe, Ajax Systems and Ring (Amazon).The DIY systems typically include self-monitoring as a standard feature and offer professionalalarm monitoring services as an option. ADT is the leading provider of monitored alarmsystems in North America with 6.5 million residential and business customers at the end of2019. Vivint, Comcast and Brinks Home Security (Monitronics) follow and had 1.55 million,1.38 million and 0.85 million residential and small business customers respectively at the endof 2019. In the US, only a few market players offer services nationwide. Instead there areseveral smaller home security providers with a strong local presence. In Europe, Verisure isthe clear market leader with 3.3 million residential and small business customers. Thecompany is active in 12 European countries and four countries in South America. SectorAlarm and EPS Télésurveillance, a subsidiary of Crédit Mutuel, are other leading players inEurope with around 550,000 and 500,000 monitored alarm systems respectively at the end of2019.

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