The global smart home security camera market size was valued at USD 3.71 billion in 2020 and is expected to grow at USD 9.99 billion by 2027 at a compound annual growth rate (CAGR) of 15.7% from 2020 to 2027. Growing penetration of smart homes, particularly in developing as well as developed countries across the globe, is driving the demand for smart home security cameras. In addition, rising prominence of security devices through home automation process in order to access security 24/7 is paving the way for different smart home security cameras for indoor as well as outdoor safety. Increasing expansion of home automation devices, such as lights, locks, and security cameras, with remote technology on smartphones, tablets or wearables are generating greater demand among consumers to ensure maximum safety.
According to a blog by Frontpoint, sales of smart home devices are increasing by over 20% per year, with the desire for interactive security, which is raising the consumer spending on smart home hardware devices and services. Various smart security cameras are equipped with artificial intelligence to recognize and analyze human anatomy, behavior, and environmental activity. Smart products such as Google’s Nest Cam or Amazon’s Cloud Cam offer these innovative features.
Higher penetration of smart homes across developed nations of America and Europe is resulting in greater adoption of this product. According to the studies, there were about 30.5 million smart homes in Europe at the end of 2018. Moreover, according to Houzz’s 2020 Overview of U.S.
Renovation, homeowners spend approximately USD 500 on smart home and security equipment, particularly in outdoor security, voice assistants, video doorbells, and smart lights. Rising security concerns over interconnected devices have also raised consumer spending on these devices. According to a survey by PC Mag, in 2018, 34% of consumers rely on smart home security devices to keep their homes safe.
In terms of revenue, wired devices dominated the smart home security camera market with a share of 55.8% in 2020. This is attributed to longer durability and stronger reliability, which makes the device an essential category in the home security segment. Wired smart home security cameras are widely used in various households owing to their low installation and maintenance costs as compared to wireless models. Furthermore, smart wired security camera witness low failure rates, which, in turn, is likely to contribute to the growth of the segment in the years to come.
In terms of revenue, the indoor camera application segment dominated the market with a share of 40.2% in 2020. This is attributed to the surge in the number of burglary cases, which are drawing attention of residential households towards indoor security. According to a blog by Safewise, as of 21 April 2020, a burglary occurs every 26 seconds in U.S. Therefore, in order to access complete control over households throughout the day through remote access, consumers opt for indoor application of smart home security camera. According to State of Safety survey, break-ins are the most-feared property crime. Moreover, according to the FBI, in 2018, 51% of all reported burglaries occurred in the daytime compared to 32% at night. Thus, in the absence of people at their houses in daytime, consumers are rapidly increasing the application of such devices in their households.
The smart home security cameras market is segmented on the basis of application, product and region. By application the market is divided into Doorbell Camera, Indoor Camera, Outdoor Camera. By product the market is divided Wired, Wireless.
North America dominated the market with a share of 40.1% in 2020. This is attributed to increasing number of one person or two person households in American countries, such as U.S., Canada, and Mexico, thus urging consumers to invest in household security devices in the absence of residents. Increasing penetration of smart homes in the region is also boosting the demand for smart home security camera as an aid to access control over the safety of the households. According to the European Commission, in 2017, Smart Home revenue in U.S. is expected to grow over three-fold between 2016 and 2021, exceeding USD 32 billion.
Asia Pacific is expected to expand at the fastest CAGR of 16.3% from 2020 to 2027. China accounts for a major share in the regional market owing to rising infrastructure development as well as increasing construction activities to address the growing population. Major home improvement projects undertaken by consumers owing to rapid urbanization and growing purchasing power of the people in the region are boosting the demand for smart home security solutions, such as smart security camera. Growing trend of smart homes, coupled with demand for smart appliances for home automation and security, is driving the regional market. Moreover, increasing awareness among consumers about the growing crime rate is boosting the adoption of smart security camera.
Vivint, Inc.; ADT; SimpliSafe, Inc.; Frontpoint Security Solutions, LLC; Brinks Home Security; iSmart Alarm, Inc.; LiveWatch Security LLC; Skylinkhome; Protect America, Inc.; SAMSUNG.