The smart home security market is estimated to be worth USD 28.52 billion in 2023 and is projected to grow at a CAGR of 13.81% during the forecast period (2023-2028), reaching USD 54.45 billion by 2028. The increasing number of internet users and the rapid adoption of smartphones and smart gadgets are driving the growth of the global smart home security market. The growing concern for remote house monitoring and rising crime rates worldwide are also contributing factors.
China is expected to be a major player in the smart home security market, with predictions that it will account for around one-third of all IoT connections globally by 2025. Favorable policies and initiatives such as the Made in China 2025 strategy and the Smart Cities Projects are expected to drive market growth in the country. In Australia, smart home technology is growing, with 49% of the population currently using some form of this technology. Security camera systems are predicted to be the most popular smart home security devices in the next five years.
Smart home security systems integrate various devices such as thermostats, smart locks, cameras, doorbells, and smartphone apps to provide continuous home security. Additional features like carbon monoxide listeners and flood and freezing alarms enhance the capabilities of these systems. The Covid-19 pandemic had a negative impact on the global home security systems industry, but it is expected to recover in 2021, with the US and China leading the market.
While smart home gadgets offer convenience and enhanced security, they are also vulnerable to cyberattacks. IoT providers need to offer specialized security solutions to protect these devices. Additionally, small operating systems used in smart home devices may have less reliable security solutions compared to Windows or Linux-based systems.
The smart camera and monitoring segment is expected to witness significant growth in the smart home security market. Advanced intelligent surveillance systems are being used to replace traditional surveillance systems, enabling high-accuracy monitoring of multiple scenarios. The adoption of IP cameras with superior image resolution and the integration of emerging technologies like IoT are driving the demand for smart cameras and monitoring systems.
North America, particularly the United States, is expected to hold a major share in the smart home security market due to the growing adoption of smart home technology and products. Security is the top benefit of owning a smart home, as reported by more than three in five Americans.