Intruder alarm market positive for Americas
ENGLEWOOD, Colo.—The intrusion alarm market in the Americas will see steady growth to 2019, according to a recent IHS report.
IHS estimated the market to be $1.4 billion in 2015, “and we’re expecting this to grow to around $1.8 billion by 2019,” with an average growth rate of about 5 percent per year to 2019, Jim Dearing, IHS market analyst, security & building technologies, told Security Systems News.
The report includes data from 2006 to today. For the past 10 years the intrusion alarm market’s growth rate has been relatively flat, between 3 and 5 percent, Dearing said. “The intrusion market has always been a relatively stable growth market, compared to other markets such as access control which has high growth, with more volatility.”
Dearing said that manufacturers, integrators and monitoring companies are all trying to gain RMR by diversifying their offerings. “One of the ways they’re doing this … is the rise of home automation, wireless functionality, and integration with mobile systems.” The trend toward the connected home is especially prominent in America, Dearing noted.
Dearing said there’s also been a strong shift toward wireless products—a technology which is getting less expensive. Wireless products are “taking hold” in the residential sector, but hardwiring is still preferred in commercial buildings. The smart home is a “high-growth area” for residential security.
Manufacturers are releasing more apps, he noted. “Five years ago, maybe a few manufacturers were developing apps; two years ago, every single manufacturer had an app out or had one under development.”
New building construction will affect the market—more in the commercial space than in the residential market, according to Dearing. “The residential construction rates are expected to decelerate over the forecast period,” he said. “Whereas, the commercial sector is much more steady and is expected to outgrow the residential sector in terms of construction rates … [and] completed projects.”
Construction also leads to growth in the intruder alarm markets through insurance requirements, Dearing said. “You’ve got new buildings going up and [they’re] required to install a system, therefore the market grows that way.”
Insurance impacts the residential market for intruder alarms by offering discounts to homeowners that install systems, he said.
“The main inhibitor the market is, and always has been, the price,” Dearing said, specifically, consumers want to avoid paying a monthly bill. “The intrusion system traditionally didn’t give you any return on your investment, apart from the non-intrinsic value of being protected.”
Consumer awareness is another barrier for the market, he said, adding that awareness of the smart home is the strongest in the U.S.