The Home and Small Business Security System Market – 11th Edition

The Home and Small Business Security System Market – 11th Edition

The Home and Small Business Security System Market is the eleventh consecutive report from Berg Insight analysing the latest developments on the small alarm market in Europe and North America. This strategic research report from Berg Insight provides you with 110 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decision.

Hightlights from the report

Insights from 30 executive interviews with market leading companies.

New data on alarm system adoption by country and segment.

Comprehensive overview of the home and small business alarm system value chain.

Detailed profi les of key players on the European and North American security markets.

In-depth analysis of market trends and key developments.

Market forecasts by region, lasting until 2025.

The report answers thefollowing questions

Who are the leading providers of monitored home and small business alarm systems?

Why are alarm system providers investing in smart home technology?

Are DIY home alarm systems providers a threat to the traditional players?

Which are the leading providers of secure alarm communications services?

What is the market value of the alarm system industry in Europe and North America?

What is the potential market size for cellular IoT in the alarm systems industry?

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 as manned guarding, alarm system integration and monitoring, cash handling as well as various services like consulting and private investigations. The global market value of the security industry reached an estimated € 174 billion in 2020. The more mature European and North American 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 Europe and North America. Historically, annual growth has exceeded GDP by a few percentage points each year. However, the mature markets in Europe and North America are no longer growing faster than GDP, but rather at the same rate as GDP.

Security systems for small businesses and private homes can be divided into three main categories – local, self-monitored and professionally monitored security systems. When activated, a local security system only emits an alarm sound to alert the surroundings and scare off intruders. Such systems are not monitored and cannot be accessed remotely. A self-monitored security system is connected and informs the owner of the premises upon activation by sending a text message, email or push notification. A professionally monitored security system is connected to an Alarm Receiving Centre (ARC). When the system is activated, the ARC can respond by dispatching a security patrol and contact emergency services. Professionally monitored security systems are dependent on reliable communications networks. The latest generation of such systems uses dual wired and wireless 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 the European market. There were an estimated 32.3 million active monitored alarm systems in the US and Canada at the end of 2020. The overall penetration rate among the around 150 million households and businesses in North America was 21.5 percent. In the EU27+3, there were about 16.8 million active monitored alarm systems at the end of 2020. This corresponds to an overall penetration rate of 6.8 percent among the around 245 million households and small businesses in Europe. The market data thus indicate a significant growth potential for alarm systems on the European market, especially in the residential segment where the current penetration is only 5.6 percent. However, growth on The European market is anticipated to vary considerably from country to country in the next few years. The Nordic market is forecasted to grow the fastest, while other major markets in Europe will show less growth due to high market fragmentation and fewer specialist alarm service companies that actively market solutions. In both Europe and North America, interactive security services and smart home products are key growth drivers in the home security market.

Companies from a wide range of industries offer home and small business security systems on the European and North American markets. The traditional home security systems market is served by specialist home security companies such as ADT, Verisure, Brinks Home Security (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 Bell Canada; as well as utilities, banks and insurance companies such as EPS (Crédit Mutuel), Crédit Agricole and Groupama. The DIY home security systems market is led by start-ups such as Frontpoint, SimpliSafe, Ajax Systems, Ring (Amazon) and Wyze Labs. DIY security systems typically include self-monitoring as a standard feature and professional alarm monitoring services are offered as an option.

ADT is the leading provider of professionally monitored alarm systems in North America with 6.5 million residential and business customers at the end of 2020. ADT is followed by Vivint, Comcast, SimpliSafe and Brinks Home Security (Monitronics), all with between 900,000 and1.7 million monitored alarm system customers at the end of 2020. In the US, only a few market players offer services nationwide. Instead there are several smaller home security providers with a strong local presence. In Europe, Verisure is the clear market leader with 3.8million residential and small business customers. The company is active in 12 European countries and four countries in South America. Other leading players in Europe are Sector Alarm and EPS Télésurveillance, a subsidiary of Crédit Mutuel, both with more than 500,000 monitored alarm systems at the end of 2020.

Executive summary
1 The security industry
1.1 Market overview
1.1.1 Security services
1.1.2 Enterprise security systems
1.1.3 Home and small business security systems
1.1.4 Cash handling
1.2 Key industry players
2 Home and small business security systems
2.1 Technology overview
2.2 European standards for intruder alarm systems
2.3 Alarm system value chain
2.3.1 Traditional home security system providers
2.3.2 Do-It-Yourself (DIY) home security system providers
2.3.3 Home security system manufacturers and platform providers
2.3.4 Secure alarm communications service providers
2.4 Market value and alarm system penetration
2.4.1 The European market
2.4.2 The North American market
3 Market forecasts and trends
3.1 The European market landscape
3.2 The North American market landscape
3.3 Market drivers and trends
3.3.1 Interactive smart home systems fuel interest in security services
3.3.2 DIY and traditional home security systems offerings are converging
3.3.3 Security and integrity issues when the home is connected
3.3.4 Security systems and smart home products enable insurance discounts
3.3.5 The pandemic’s impact on the security industry
3.3.6 Network sunsets – an opportunity and challenge for the security industry
4 Company profiles and strategies
4.1 Traditional home security system providers
4.1.1 ADT
4.1.2 Altice France
4.1.3 Brinks Home Security (Monitronics)
4.1.4 Carrier
4.1.5 Comcast
4.1.6 Cox Communications
4.1.7 EPS Télésurveillance
4.1.8 G4S (Allied Universal)
4.1.9 Guardian Protection
4.1.10 Johnson Controls
4.1.11 Prosegur
4.1.12 Sector Alarm
4.1.13 Securitas
4.1.14 Stanley Black & Decker
4.1.15 Telus
4.1.16 Vector Security
4.1.17 Verisure
4.1.18 Vivint
4.2 DIY home security system providers
4.2.1 Ajax Systems
4.2.2 Canary
4.2.3 Frontpoint
4.2.4 Minut
4.2.5 Ring (Amazon)
4.2.6 SimpliSafe
4.2.7 Somfy
4.2.8 Wyze Labs
4.3 Home security system manufacturers and platform providers
4.3.1 Alarm.com
4.3.2 Bosch
4.3.3 DMP
4.3.4 DSC (Johnson Controls)
4.3.5 Nortek Control (Nice)
4.3.6 Resideo Technologies
4.4 Secure alarm communications service providers
4.4.1 AddSecure
4.4.2 BT Redcare
4.4.3 CSL
4.4.4 Telular (AMETEK)
4.4.5 Uplink (Sierra Wireless)
Glossary
Index
List of Figures
Figure 1.1: Security market value (World 2016–2020)
Figure 1.2: Market value by segment (EU27+3 and North America 2020)
Figure 1.3: Market value by country (EU27+3 and North America 2020)
Figure 1.4: Small alarm system revenues (EU27+3 and North America 2020)
Figure 1.5: Leading security industry players by segment (EU and North America 2021)
Figure 1.6: Leading integrated security groups by revenues (2020)
Figure 2.1: Home security system components
Figure 2.2: EN 50131 grading system
Figure 2.3: EN 50131 ATS rating criteria
Figure 2.4: EN 50131 grading system criteria
Figure 2.5: Home and small business security system ecosystem
Figure 2.6: Top monitored alarm providers (EU27+3 and North America Q4-2020)
Figure 2.7: Monitored small alarm systems by country (EU27+3 2020)
Figure 2.8: Monitored small alarm systems by segment (Europe 2020)
Figure 2.9: Households, dwelling types and homeownership by country (EU27+3 2020)
Figure 2.10: Existing homes and housing starts (EU27+3 2017–2020)
Figure 2.11: Monitored small alarm systems by segment (North America 2020)
Figure 2.12: Existing homes and housing starts (North America 2017–2020)
Figure 2.13: Households, dwelling types and homeownership by country (NA 2020)
Figure 3.1: Alarm system shipments and installed base (EU27+3 2019–2025)
Figure 3.2: Alarm system shipments and installed base (North America 2019–2025)
Figure 4.1: The Complete home security system
Figure 4.2: Xfinity Ultimate Home System
Figure 4.3: Sector Alarm company acquisitions (2011–2018)
Figure 4.4: Verisure alarm connections per country (Q4-2020)
Figure 4.5: Ajax Systems’ security system and devices
Figure 4.6: Minut Home Sensor
Figure 4.7: Somfy ONE+ all-in-one home security system
Figure 4.8: Wyze Home Monitoring security system
Figure 4.9: Honeywell Home ProSeries security and smart home platform
Figure 4.10: Telguard Homecontrol Flex

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