Safety & Security Alarms

Report Overview

This study analyzes the US market for the following types of electronic alarm systems:

• life safety alarm systems:
  • smoke and fire detectors (including products that are combination smoke/fire and carbon monoxide detectors)
  • carbon monoxide detectors
• intrusion alarm systems
• personal emergency response systems (PERS) and related systems, which encompass mobile PERS (mPERS)

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Demand is segmented by application:

• local – standalone devices that emit an aural or visual signal when the unit is triggered
• central station – a network of alarms whose operations are automatically reported to a centralized commercial monitor charged with rendering protective services in the event of an emergency. Additionally, smart, self-monitored versions of these products that connect to an end user’s smartphone or other electronic device are included in this segment.
• direct connect – alarms that directly connect to public safety forces (e.g., police, fire)

Demand is also segmented by market, which comprise:

• residential (i.e., products used in single-family or multifamily residences that are not used for any nonresidential purpose)
• trade and distribution (including the retail and warehouse segments)
• industrial (including the manufacturing segment)
• financial institutions
• government
• commercial offices and office buildings
• services (including the public venue and casino gaming segments)
• educational buildings
• healthcare facilities
• air transport
• lodging establishments
• other nonresidential markets, such as religious buildings, museums, and libraries

Also included in the scope of this study are all-in-one security systems, excluding cameras that are part of these systems.

Excluded from the scope of the study are:

• video cameras
• security services such as alarm monitoring and systems integration, as well as installation and other service revenue
• dedicated information security hardware and software (e.g., computer network access devices, encryption, firewalls, and virtual private networks)
• motor vehicle security systems, such as anti-theft, keyless entry, and vehicle recovery systems

Demand for safety and security alarms is expected to rise 4.8% per year through 2023 to $5.7 billion. In general, sales of safety and security alarms are dependent on a range of factors, including:

• building codes and regulations
• health of the economy and construction activity
• perceived risk of crime

While these factors are expected to continue to support sales going forward, a number of key dynamics are helping shape the market, including a growing range of safety and security alarm suppliers, new product development, and demographic trends.

Smart Home Security Suppliers & Multi-Service Operators Spur Residential Adoption

The influx of smart home security suppliers and MSOs (multi-service operators) is increasing consumer awareness of these products:

• Smart home security companies are enabling consumers to more easily purchase and install security systems with online ordering and DIY installation.
• MSOs are increasingly offering consumers the ability to bundle security equipment and services with their cable and internet packages.

These new players are increasing market penetration in residential applications. Additionally, as entry-level smart security products are often less expensive than traditional security products, they can serve as a gateway to more advanced home security products and services. As a result, increased adoption is expected to open up opportunities for upgrades.

Product Development Creating Integrated & Connected Systems

Innovations in safety and security alarm technology are allowing end users to more easily interact with their alarm systems. More product types can be integrated with building systems and home automation products, allowing systems to be managed from a single interface. Additionally, improvements in connectivity allow security systems to be controlled and monitored remotely from smartphones or central stations. Furthermore, older systems can be retrofitted with communicators that allow landline-based systems to connect via cellular or Internet Protocol (IP) networks. This is particularly important as sunsets are reached for various network types, though concerns about cybersecurity may limit adoption to some extent.