According to market intelligence agency, Zion, the global market for connected home security devices is expected to reach about $7.9 billion in value by the year 2021—more than triple it’s valuation since 2015. The forecasted Compound Annual Growth Rate (CAGR) between 2016 and 2021 is 18.3%.
Zion Research published the report last week titled “Connected Home Security Device Market by Type” providing an evaluation of detection devices, sensors, security cameras, door locks, access control, and others.
The explosion of the Internet of Things has been well established by the growing prevalence of smart home platforms like Amazon Alexa and Google Assistant. In a separate report by the International Data Corporation (IDC), the market for smart speakers was considered to be the fastest growing category in the overall smart home device market with a five-year CAGR of 39.1%. This accounts for the nearly 100 million units being sold in 2018 and a projected 230.5 million by 2022. Security Baron has reported repeatedly on the growth of the industry as the numbers are frequently revised.
With smart speakers operating as a home hub, innovation for complementary devices in the smart home and security space has boosted significantly with an estimated 1.3 billion devices expected to be on the market by 2022 with a five-year CAGR of 20.8%.
Factors Contributing to Growth
The main variables responsible for the growth are attributed to the wide availability of smartphones, reductions in hardware manufacturing costs, and consumer trends towards Internet of Things products. More business have aggressively started to prioritize the trend to offer consumers some scope of connected devices.
A global regional segment analysis featured in the report is based on North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. North America had the largest market for connected home security devices as of 2015, largely due to high technology adoption rates. However in the coming year, Europe is expected to undergo rapid growth in the industry. Additionally, countries across Asia are also expected to experience a boost in the market due to rising disposable income in middle-income nations like China.
We can expect these trends to continue as long as major players like Honeywell, Google, and Apple continue to allocate resources to the smart home space.
Featured image courtesy of Zion Market Research.