Transparency Market Research has released a new report that predicts that the home security market will quadruple in the next few years, climbing from $17.8 billion in 2019 to $81 billion in 2027. Those figures represent an astronomical CAGR of approximately 21 percent.
The research firm attributes much of that growth to the increasing availability of smart home solutions like smart doorbells, smart locks, and video surveillance. Affluent homeowners are driving much of the demand, but smart home technologies have become more affordable in recent years, making them a more accessible option for lower and middle income families.
According to Transparency, electronic locks are the most popular hardware solution, primarily due to their compact form factor and their relative affordability. The locks are also easy to install, which will continue to drive sales moving forward. However, high-end customers will still be a top priority for most manufacturers, with security providers offering premium versions of their products to people living in luxury homes. Those comprehensive systems could include everything from surveillance cameras and doorbells to smoke detectors and smart thermostats.
The North American region will be the largest market for home security tech throughout the forecast period. Transparency identified ADT, HikVision, Honeywell, SimpliSafe, Tyco, and Assa Abloy as some of the key players in the home security space. Assa Abloy is the parent company of HID Global.
The Transparency findings echo a recent report from Parks Associates, which similarly observed that smart locks have been gaining traction with homeowners. In the meantime, Fingerprint Cards placed a fingerprint sensor in a new door lock from Kwikset, while a Precise Biometrics algorithm was featured in a smart lock from Xiaomi. Those are only two of the many smart lock options currently available to consumers.
Grand View has predicted that the overall physical security market will reach $171 billion in the same 2027 timeframe.