Smart Home Security Report 2020: What’s Now and Next?
According to the International Data Corporation, in 2020, the COVID-19 Pandemic has halted double-digit growth of smart home device in Europe. This is strongly connected to the following main reasons: stores have been closed, shipping has been impacted, manufacturing plants have been shut down, and customers’ reduced spending for services and appliances. However, the rapid growth in the demand for smart home system will still help to drive the market growth in the long-term.
(Chart1. Source: Statista Digital Market Outlook 2020)
In the past few years, due to the industry growth, the growing urbanization and globalization, and the increase in crime rates, the desire for having smart security products is rising in the meanwhile. Especially, research has reflected that the burglary rate is an important driver for the device adoption. The smart home segment security refers to digitally connected and controlled devices for burglar prevention and other security issues, for instance, security cameras, door locks, motions sensors, and smoke sensors. Unlike traditional security systems, users can control the smart home devices remotely via mobile apps and this gives the owners peace of mind when they are not at home. Once a potential risk is detected, they will be notified immediately and thus take actions to minimize the loss.
The Smart Door Locks Report 2020 shows that 14% of survey participants are very familiar with the smart door locks and 47% stated that they are somewhat familiar with it. 57% are willing to pay an additional service fee for smart lock installation. But in fact, today many smart security products are easy installation without drilling or cabling. For example, our BeeSecure Smart Lock P1, (https://www.beesecure.eu/bee-lock-p1/). This Do-It-Yourself option is somehow expending the choices available to consumers who want to secure their homes.
The global market size of the security segment is about US$11.9 billion in 2020, and is expected to reach $44.8 billion by 2023, according to Statista and Market Research Future. The leading country in this scope is the U.S. with total revenue of US $4.1 billion in 2020, which represents more than 40% of the whole market. Europe comes second with US$2.4 billion in revenue and 15 million households in 2020. The market is expected to grow by 17.1% annually (Statista, Smart Home Security Report 2020).
(Chart 2. Source: Statista Digital Market Outlook 2020)
Opportunities and Challenges
Look into the future, the clear divisions between different segments in smart home industry will blur. Therefore, developing products with multifunction and high integrability will be the trend that vendors should follow in the next steps. Rather than focus on products and single functions, companies are suggested to pay more attention to customer needs and use cases. Thus, a successful business model will be bundling different features in one simple and easy-to-handle product.
In addition, combining AAL (ambient assistant living) products with security features is another great potential. Elders, children, and people with special needs have not much entered the target group for smart home security companies (see chart 1). Hence, developing AAL-friendly products to make those people who are reluctant or unable to adopt digital technology will further stimulate market growth.