Global Security Alarms & Video Surveillance Equipment

Global Security Alarms & Video Surveillance Equipment

Global demand for security alarms and video surveillance equipment is forecast to increase 2.0% per year to $69.7 billion in 2027; rising building construction spending will contribute to gains worldwide. Growth will be driven by rising sales of video surveillance cameras, which will achieve increased market penetration – particularly in industrializing countries – as costs fall. However, sales value growth will decelerate compared to the 2017-2022 period, which saw atypically high price increases.

Smart Technology Driving Gains for Video Surveillance Products

Demand for video surveillance cameras is expected to pick up particularly rapidly, boosted by the expanding capabilities of analytics features. Smart analytics technology can:

• preemptively flag suspicious activity
• minimize false alarms
• interface with building management and building automation systems
• provide valuable intelligence for optimizing layouts in retail and other building settings

These sorts of features are greatly expanding the value-added proposition of video surveillance systems, and they will remain key areas of development. However, technological advancements that make video cameras more useable may negatively impact sales of other video surveillance products. For example, use of cloud storage and the ability to interface with surveillance systems via standard smartphones and tablet computers will restrict the need for dedicated supplementary video surveillance equipment.

Residential Surveillance Market to Continue Rapid Development

Doorbell cameras (and similar products) targeted at residential users have been one of the fastest growing product categories in recent years, a trend that is expected to continue. These products are particularly popular in the US but are also projected to achieve strong market penetration in West European nations. Ongoing price reductions have greatly increased the potential for sales of video surveillance cameras to residential users, such that they tend to be very affordable for homeowners in high-income nations. As in nonresidential markets, technological advances allowing for integration of these products with smartphones have contributed to increased market penetration. While doorbell cameras dramatically rose in popularity in the US over the 2017-2022 period, they have substantial room for further market share growth – both in that country and elsewhere.

Market Saturation Restraining Growth for Security Alarms

While alarms were the leading product in 2022, they are projected to fall below video surveillance equipment by 2027. Markets for these products are particularly saturated in higher-income nations where basic products, like fire alarms and smoke detectors, have long been mandated in building codes. As a result, growth in these nations will require broader increases in building construction spending. However, construction industries in many applicable nations – particularly in Western Europe – are mature, so growth in developing nations will be necessary for more substantial gains. PERS alarms do represent a growth segment, reflecting aging populations in the US and Western Europe, where these products are most common. However, these still represent a small share of the total.

This Freedonia industry study analyzes the $63.3 billion global security alarm and video surveillance equipment industry. It presents historical demand data (2012, 2017, and 2022) and forecasts (2027 and 2032) by product (life safety alarms, intrusion alarms, PERS alarms, video cameras, other video surveillance equipment) and region (North America, Central and South America, Western Europe, Eastern Europe, Asia/Pacific, Africa/Mideast). The study discusses the impact of the COVID-19 pandemic. The study also evaluates company market share and competitive analysis on industry competitors including Dahua Technology and Hangzhou Hikvision.