Smart Home Security Systems to Grow by 40% and Hit $21.2B in Revenue by 2023
- 25.05.2021 05:45 pm
Smart home with security features provides their owners a peace of mind, knowing that if potential trouble is detected, they will be immediately notified and can take complete control of what to do next to minimize the damage. Although the COVID-19 did influence the global smart home security market, revenues of the entire sector continued growing substantially.
According to data presented by BuyShares.co.uk, smart home security systems are expected to hit $15.1bn in revenue in 2021, a 27.4% jump in a year. The increasing trend is set to continue in the following years, with revenues rising by 40% to $21.2bn by 2023.
Smart Security Cameras the Single Most Bought Product in the Security Segment
The smart home security market includes the sale of motion sensors, door locks, security cameras, surveillance services connected to a broader smart home, water or smoke sensors, and digitally connected devices for burglar prevention or other security issues.
Like other smart devices, these solutions come with mobile apps for wireless access and information about the device's status. Moreover, many of them can be set up without special knowledge, making these products interesting for a wider audience looking for affordable and easy-to-use security solutions.
Even before the pandemic, the revenues of the global smart home security market had been growing at a steady pace, rising from $5.7bn in 2017 to nearly $10bn in 2019, revealed the Statista survey. Last year, this figure rose to $11.9bn, despite the effects of the COVID-19 pandemic. Statistics show global smart home security systems revenue is expected to grow by $3.2bn in 2021. However, the following years are set to witness even more impressive growth, with revenues rising by another $6.1bn by 2023. By 2025, the entire market is projected to reach $27.3bn value.
Statista survey also confirmed security cameras are the single most bought product in the security segment, with a product penetration rate of 2.6% in 2021. By 2023, this figure is expected to rise to 4.3%. Smart locks ranked second with a 1.9% penetration rate this year. Smoke detectors follow with a 1.6%, respectively.
The US Market Leads in Revenue, China to Witness the Biggest Growth
The United States represents the world's largest smart home security market with over $5bn in revenue and 22.7 million smart homes in 2021. By 2023, the US revenues are expected to jump to $6.5bn, or one-third of global smart home security revenues that year.
Europe comes second after the US with over $3bn in revenue and 19.6 million households in 2021. The European market is expected to grow by 17.1% annually and hit a $4.2bn value in the next two years.
The smallest region in this comparison is China, with a 2021 revenue of $2.8bn. However, the country is set to witness the most significant revenue growth or almost 20.9% per year. By 2023, the Chinese market is expected to reach $4.1bn value.