Technavio recently released a report on the residential security market, from 2016 to 2020, which projects growth for the North American market. According to the report, the global market for residential security will grow at a 7.34 percent CAGR—from $21.93 billion to $31.25 billion. The North American market will rise to about $15 billion in 2020, up from $12.51 billion in 2016, at a CAGR of 4.56 percent.
“North America currently owns nearly 55 percent of the market (United States consists of 49 percent), the next closest is Europe with 23 percent,” Navin Rajendar, Technavio senior industry manager, said. “North America will continue to lead the market in 2020, although their market share is expected to decrease to 48 percent owing to APAC and Europe’s growth.”
The Internet of Things will be a big trend in the residential security market, according to Rajendar. “IoT and interconnectivity will deliver smarter technology that connects homeowners with more areas of the home on a real-time basis,” he said.
Rising threats in residential buildings is one factor that is driving the market, according to the report. Rajendar also pointed to body cameras as a rising trend in security, one that will impact the residential market as well. “Body cameras are expected to become a key requirement for residential security agencies. The feed from these cameras could be viewed by the owners of the residential association or committee as a means to check if the guards are patrolling as they should be.”
The market will face challenges, including threats to consumers’ privacy and a lack of standards. “There have been instances of smart homes being hacked, which can be a major threat to the market,” Rajendar said.
There will always be a risk of hacking, according to Rajendar. “What is important though is that there are enough measures in place to ensure that there are safeguards in place to at least provide a warning to a user.For example, looking at financial institutions, many of them have recommended … their customers to change their passwords on a monthly basis,” he said.