Smart Security Market Size, Share & Trends Analysis Report By Type (Smart Intruder Alarms, Intelligent Video Surveillance), By Protocols (ZigBee, Wi-Fi), By Application, And Segment Forecasts, 2023 - 2030

Smart Security Market Size & Trends

The global smart security market size was estimated at USD 57.60 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.1% from 2023 to 2030. This expansion is propelled by the surging popularity of smart homes, which offer benefits, including convenience, enhanced security, and improved energy efficiency. Within the domain of smart homes, smart security systems play a pivotal role, providing homeowners with a sense of assurance and protection. The increase in the global crime rate is further driving the demand for smart security solutions, serving as effective barriers against burglary, theft, and vandalism. Moreover, the market is also benefiting from the increasing affordability of smart security systems, making them accessible to a broader consumer base and thereby fueling overall market growth.

Smart security solutions play a vital role in safeguarding individuals, organizations, and public spaces by providing a comprehensive approach to monitoring and countering various threats. Biometric access control systems, utilizing unique physical or behavioral traits, enhance security by replacing traditional methods and mitigating risks associated with lost or stolen credentials. Wireless alarm systems offer real-time monitoring and protection against intrusion, fire, and emergencies, employing sensors and detectors to alert authorities or homeowners promptly. Their flexibility and easy installation make them suitable for diverse residential and commercial settings. Furthermore, smart surveillance cameras deliver high-quality video surveillance and remote monitoring capabilities, widely utilized in commercial buildings, public spaces, and residential settings to deter crime and gather evidence. The integration of these advanced technologies signifies significant growth in enhancing security measures across different domains, ensuring comprehensive protection against unauthorized access, criminal activities, and potential threats.

The surge in technological advancements is driving the market demand. The adoption of technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) is facilitating the development of effective smart security solutions. Heightened concerns about security and privacy, particularly in urban areas, fueling a growing demand for solutions safeguarding homes, businesses, and assets. The integration of smart homes and smart building technologies is fostering a more interconnected ecosystem, facilitating the seamless integration of advanced security solutions. The use of AI, ML, and IoT in smart security systems enables real-time decision-making, comprehensive connectivity among security devices, and the storage and analysis of large amounts of security data through cloud computing, aiding in the identification of potential security breaches.

Smart security solutions have applications across various sectors, including integration into smart city initiatives, smart home automation, and commercial buildings. The implementation of smart security solutions yields several advantages, such as protection against unauthorized access, enhanced incident response through real-time alerts, and improved data protection by monitoring restricted areas. Additionally, these solutions contribute to cost reduction by automating tasks, minimizing false alarms, and optimizing the deployment of security personnel.

Application Insights

The commercial segment held the largest revenue share of over 50% in 2022. The high share can be attributed to the growing demand for smart security systems across diverse commercial applications. These applications encompass retail for analyzing customer behavior and deterring theft, banking and finance facilities for preventing crime and mitigating fraud, data centers and enterprises for safeguarding critical infrastructure, and hospitality centers and warehouses for enhancing safety, monitoring staff, and improving overall security. Smart security systems play a pivotal role in retail by deterring theft and analyzing customer behavior through technologies like video surveillance and access control. For instance, in Nov 2023, TerraMaster, a China-based company, introduced Surveillance Manager, a comprehensive software for businesses to manage and monitor video surveillance efficiently. It offers live video monitoring, recording stored on TerraMaster NAS, motion detection with alarms, and user-friendly event management. Compatible with various TerraMaster NAS devices and third-party cameras, it provides a unified interface for seamless control.

The industrial segment is expected to experience significant growth due to the rising need for security in increasingly complex and automated facilities. Smart security systems play a crucial role in safeguarding industrial facilities from criminal activities such as theft and vandalism. The adoption of smart manufacturing technologies, including the Industrial Internet of Things (IIoT) and Industry 4.0, enables the collection and analysis of data from industrial processes, contributing to enhanced security by identifying and addressing potential threats. Additionally, the growing demand for regulatory compliance in industrial settings further drives the adoption of smart security systems to ensure adherence to evolving regulations.

Regional Insights

Asia Pacific dominated the market with a revenue share of over 38% in 2022. The region's increasing urbanization has led to a rise in crime rates, fueling the demand for security solutions. Additionally, the growing disposable incomes of consumers in the region have made them more inclined to invest in smart home devices, including advanced security systems. The rising popularity of cloud-based security services is simplifying and making security solutions more affordable for both businesses and consumers. Furthermore, the adoption of cutting-edge technologies like AI and ML is enhancing the intelligence and effectiveness of security systems in the region.

Middle East & Africa (MEA) is anticipated to register a considerable CAGR over the forecast period. This growth is attributed to the escalating security threats faced by the region, such as terrorism, cybercrime, and political instability, which are prompting a heightened demand for security solutions to safeguard businesses and individuals. The substantial investments in infrastructure development, encompassing areas like transportation, energy, and telecommunications, are creating new opportunities for security providers to protect these critical assets. Government initiatives also play a pivotal role, as MEA governments implement regulations and invest in security solutions to enhance overall security.

Type Insights

The intelligent video surveillance segment led the market and accounted for a revenue share of over 46% in 2022. The growing need for high-resolution video, real-time analytics, and facial recognition capabilities drives the segment's growth. Intelligent video surveillance systems serve diverse purposes, including threat identification, crime deterrence, enhanced customer service, operational optimization, and data collection for business intelligence. Advancements in technologies such as artificial intelligence, machine learning, and computer vision are making these surveillance systems more powerful and accurate, enabling automation of tasks and real-time alerts. Additionally, the rising demand for data-driven insights in business is leveraging intelligent video surveillance to collect and analyze data on customer behavior, traffic patterns, and other metrics for informed decision-making in areas like marketing and inventory management.

The access control systems segment is poised for significant growth in the coming years, driven by growing concerns over security. Businesses and individuals are turning to access control systems for robust and reliable access restrictions to authorized personnel. Technological advancements in biometric authentication, such as fingerprint and facial recognition, contribute to the increasing use of these systems. Moreover, integration with smart homes and building automation systems creates an interconnected and seamless security environment, allowing centralized control of access permissions. The expanding adoption of access control systems in residential and commercial sectors for enhanced protection and efficient management of access further fuels the market. For instance, in March 2023, ProdataKey, Inc., a cloud-based access control provider, and Turing AI jointly released a cloud-based integrated solution for access control and video surveillance. This solution, built on ProdataKey, Inc.'s cloud access control platform and Turing AI's cloud video surveillance system, offers users a unified interface for managing both systems seamlessly and securely.

Protocols Insights

The hybrid segment led the market with a revenue share of over 40% in 2022. This dominance is attributed to the inherent advantages of hybrid protocols, offering flexibility in network design and deployment tailored to specific organizational or application needs. The adaptability of hybrid protocols makes them highly versatile across a broad spectrum of smart security use cases. Moreover, they are more reliable than traditional ones because they include measures to correct errors and ensure redundancy. This enhances the resilience of smart security systems, minimizing the risk of failures and disruptions. Furthermore, hybrid protocols support both wireless and wired communications, providing users with the option to choose the most suitable connectivity method based on specific environmental requirements, whether driven by security concerns or performance considerations.

The wireless protocols segment is poised for significant growth driven by the expanding adoption of IoT devices and the increasing demand for secure and reliable connectivity. These protocols, particularly in mobile connectivity, play a crucial role in enabling devices to connect to the internet and other networks from any location, fostering IoT growth by facilitating data collection and sharing without physical constraints. The ability of wireless protocols to establish connectivity regardless of physical proximity is vital for applications such as smart homes and smart cities, where seamless communication between devices enhances user experiences. Furthermore, the energy-efficient design of wireless protocols is crucial for the growth of battery-powered IoT devices, ensuring low power consumption. Additionally, more protocols, namely ZigBee, Wi-Fi, Bluetooth, and Z Wave are also driving the segment's growth.

Key Companies & Market Share Insights

In the market, both established players and startups have opportunities for competitive advantage. Organic approaches involve expanding products, investing in technology, innovating smart security system applications, and exploring new markets. Additionally, inorganic strategies like mergers, acquisitions, and partnerships enable quick entry into new segments and access to innovative technologies. For instance, in August 2023, Quantum Corporation announced a strategic partnership with Tiger Technology to offer end-to-end solutions for the long-term retention of video surveillance data. This collaboration integrates Quantum's storage solutions, including the Smart NVR, VS-HCI hyper-converged infrastructure appliance, and USP storage platform, with Tiger Surveillance's data management software. The partnership aims to deliver a comprehensive solution addressing the increasing data management needs of video surveillance, providing customers with enhanced capabilities in storage, computing, and networking for their surveillance data.

Smart Security Market Report Scope

Global Smart Security Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global smart security market report based on type, protocols, application, and region:

• Type Outlook (Revenue, USD Billion, 2017 - 2030)

  • Smart Intruder Alarms

  • Intelligent Video Surveillance

  • Access Control Systems

  • Others

• Protocols Outlook (Revenue, USD Billion, 2017 - 2030)

  • Wireless Protocols

    • ZigBee

    • Wi-Fi

    • Bluetooth

    • Z Wave

    • Others

  • Wired Protocols

  • Hybrid

• Application Outlook (Revenue, USD Billion, 2017 - 2030)

  • Commercial

  • Residential

  • Industrial

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia

    • United Arab Emirates

    • South Africa