Security Applications and Wireless M2M is the eighth
consecutive report from Berg Insight analysing the latest
developments among the key applications for wireless
M2M communication in the European and North American
This strategic research report from Berg Insight provides
you with 210 pages of unique business intelligence including
5-year industry forecasts and expert commentary on which
to base your business decisions.
Highlights from this report:
Insights from 30 executive interviews with market leading
New data on alarm systems and monitored assets by country
Comprehensive overview of the small alarm system value
chain and key players.
In-depth analysis of market trends and key developments.
Detailed profiles of key players on the European and North
American security markets.
Market forecasts by region, lasting until 2021.
This report answers the following questions:
Which are the key applications that generate most benefits for
the end customers?
Who are the leading providers of monitored small business and
home alarm systems?
Why are leading alarm system providers investing in smart
When will wireless connectivity become a standard feature in
Who are the leading providers of aftermarket vehicle tracking
Which carmakers offer stolen vehicle tracking services as part
of telematics services?
What is the potential market size for wireless M2M
communication in the security industry?
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 € 140 billion in 2016. The more mature European and North
American markets still dominate the industry with a combined market share of close to 70
percent. The long-term annual growth rate is estimated to between 3 and 5 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.
The largest application areas for M2M communication in the European and North American
security industries are small alarm systems and vehicle tracking services. Small alarm
systems for businesses and private homes can be divided into two main categories – local
alarms and monitored alarms. The simplest type of local alarm only reacts to activation by
ringing bells to alert the surroundings and scare off intruders. A more advanced type of local
alarm is a self-monitoring alarm. Upon activation, this type of alarm informs the owner of the
premises by sending a text message or push notification. Monitored alarms are connected to
an Alarm Receiving Centre (ARC). When a monitored alarm is activated, the ARC can
respond by contacting the police or by dispatching a security patrol. Monitored alarm
systems are dependent on reliable communication networks. The latest generation of
monitored alarm systems uses dual wired and wireless network connections in order to
minimise the risk of communication failure.
The North American market for small alarm systems is much larger than the European
market. At the end of 2016, there were an estimated 32.1 million active monitored alarm
systems in the US and Canada. The overall penetration rate among 145 million households
and businesses was 22 percent. In the EU28+2, there were about 8.7 million active
monitored alarm systems at the end of 2016. This corresponds to an overall penetration rate
of 3.7 percent among 237 million households and small businesses. Fundamental market
data thus indicate a significant growth potential for small alarm systems on the European
market, especially in the residential segment where the current penetration is only 2.2
percent. However, growth on this market is anticipated to vary considerably from country to
country in the next few years. The advanced Nordic market is forecasted to grow the fastest,
while other major markets in southern Europe and the UK will show less growth due to higher
market fragmentation with fewer specialist alarm service companies that drive the market
through active marketing and Brexit uncertainties. New entrants to the market in the form of
various providers of home automation systems are also creating consumer awareness,
especially in North America. However, many of the security features included in home
automation solutions rely on self-monitoring without professional monitoring services.
Vehicle and asset tracking is the second major application area for wireless M2M
communication in the security industry. Passenger cars and commercial vehicles constitute
the main market segments. There are also several niche segments. Tracking solutions are
being adopted to monitor commercial assets such as trailers, cargo containers, construction
equipment and plant machinery. In the consumer segment, tracking services are available for
monitoring assets such as motorcycles, motor caravans, caravans and boats. Stolen vehicle
tracking (SVT) and asset tracking systems are normally based on RF transceivers or
GPS/cellular technologies. GPS/cellular technologies are also being fitted as standard
equipment or aftermarket options in commercial vehicles and passenger cars as part of fleet
management and telematics offerings. What distinguishes SVT services from general fleet
management and car telematics is the monitoring and assistance services provided by
secure monitoring centres. In Europe and North America, nearly all the leading car OEMs
have introduced embedded telematics systems or plan to do so in the near future. Telematics
adoption in the European market is accelerated by the eCall initiative from the EU that will
once implemented create an automatic emergency call system for vehicles. In North America,
commercial services have driven the adoption of OEM telematics services that have evolved
from being a differentiator to a mainstream feature offered by nearly all leading car brands on
a majority of their models. Many car OEMs offer SVT as part of their embedded telematics
service packages. Berg Insight forecasts that the number of subscribers to SVT services for
passenger cars in Europe and North America will increase from 35.9 million in 2016 to 76.0
million in 2021.
About the Authors
Johan Fagerberg is co-founder and an experienced
analyst with a Master’s degree in Electrical Engineering
from Chalmers University of Technology. He has during
the past 21 years published numerous articles and reports
about IoT/M2M topics. His areas of expertise include
location-based services, commercial vehicle telematics,
car telematics and retail M2M applications.
Anders Frick is a Senior Analyst with a Master’s degree
in Media Technology from Linköping University and an MBA
degree in Technology Management from National Chiao
Tung University. His areas of expertise include smart homes
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