Security systems for small businesses and private homes can be divided into three main categories – local, self-monitored and professionally monitored security systems. When activated, a local security system only emits an alarm sound to alert the surroundings and scare off intruders. Such systems are not monitored and cannot be accessed and controlled remotely. A self-monitored security system is connected and informs the owner of the premises upon activation by sending a text message, email or push notification through a smartphone app. A professionally monitored security system is connected to an Alarm Receiving Centre (ARC). When the system is activated, the ARC can respond by dispatching a security patrol and contacting emergency services. Professionally monitored security systems are dependent on reliable communications networks. The latest generation of such systems uses dual wired and wireless network connections to minimise the risk of communications failure.
The North American market for home and small business security systems is almost twice the size of the European market. There were an estimated 36.0 million active monitored alarm systems in the US and Canada at the end of 2023. The overall penetration rate among the around 155 million households and small business premises in North America was 23.2%. Growing at a CAGR of 3.6%, the number of monitored alarms in North America is estimated to reach 42.9 million in 2028. In the EU27+3, there were about 19.0 million active monitored alarm systems at the end of 2023. This corresponds to an overall penetration rate of 7.6% among the around 250 million households and small businesses in Europe. The market data thus indicate a significant growth potential for alarm systems in Europe, especially in the residential segment where the current penetration is only 6.3%. However, growth in the European market is forecasted to vary considerably from country to country in the next few years. Countries with an already established home security industry and with relatively high penetration rates, including countries such as Spain, Norway, France and Sweden, are anticipated to continue to grow faster than the European average. Other markets in Europe will show less growth due to high market fragmentation and fewer specialist alarm service companies that actively market solutions. The number of monitored home and small business alarms in Europe is estimated to grow at a CAGR of 4.7%, to reach 23.9 million alarm systems in 2028. In both Europe and North America, interactive security services and smart home products are key growth drivers in the home security market.
The traditional home and small business security systems market in Europe and North America is served by specialist home security companies such as ADT, Verisure, Brinks Home (Monitronics) and Sector Alarm; security service companies such as Prosegur, Securitas and G4S (Allied Universal); telecommunications and cable television companies such as Comcast, Telus, Cox Communications, Rogers and Bell Canada; as well as utilities, banks and insurance companies such as Crédit Mutuel, Groupe IMA, Crédit Agricole and Groupama. Traditional home security systems include professional alarm monitoring. DIY security systems rely on self-monitoring but many DIY system vendors offer professional alarm monitoring services as an optional extra feature. Providers of DIY home security systems include SimpliSafe, Frontpoint, Ring (Amazon), Yale (Assa Abloy), Arlo Technologies, Ooma, Abode Systems (Nice Group) Somfy, Netatmo, Signify, ABUS, Bosch, ERA Home Security and Wyze Labs.
ADT is a provider of professionally monitored alarm systems in North America with more than 6 million home and small business customers at the end of 2023. In North America, ADT is followed by Vivint, Comcast, SimpliSafe, Telus and Brinks Home (Monitronics), all with between 0.8 million and 2.0 million monitored alarm system customers each at the end of 2023. In the US and Canada, only a few market players offer services nationwide. Instead, there are many small home security providers with strong local presence. In Europe, Verisure is the clear market leader with over 5 million home and small business customers at the end of 2023. The company is active in 13 European countries and four countries in South America. Verisure has a particularly strong position in Spain, France and the Nordic countries. Other players in Europe are Prosegur, EPS Télésurveillance, a subsidiary of Crédit Mutuel, and Sector Alarm.
Discover more insights and detailed market analysis in Berg Insight’s latest report, “The Home and Small Business Security System Market: 14th edition“.
