Smart home security worth $22.1 billion by 2021

Anyone watching the smart home security market over the last few years shouldn't be surprised to learn that the US is still the dominant market for this technology. The US currently makes up 68 percent of the market at a value of $2.8 billion of a $4.2 billion market, according to a report put out by Statista. Europe currently makes up about 14 percent of the market and China 7 percent. Because the US started to adopt smart security systems earlier than other markets, this means growth is slower there. Between 2016 and 2021, China's security market is projected to grow 62.8 percent and Europe's 47 percent compared with 31.2 percent in the US.

Like other smart or “connected” products, one of the driving forces of adoption is replacement of obsolete products. A similar process is currently happening in the television market. It has become cheap enough to include smart features, so they often come in products by default. Because home security remains a major reason people adopt smart home devices, people are likely looking for some kind of connectivity in the home security devices they buy, as well.

This means the security product market is still growing relatively quickly. Even in the US, more than 30 percent growth presents plenty of opportunity. Globally, the smart home security market is expected to grow at a CAGR of 40 percent through 2021 reaching $22.1 billion. By then, other markets will be relatively strong in this area. The US market value will be $11.1 billion, Europe's $4.4 billion and China's $2.9 billion.

Statista highlights a few trends expected in the industry over the next few years. Different markets have different focuses, though. An important factor in US smart home security is functionality and compatibility. This is why establishing universal standards has become so important and why many China manufacturers have focused on devices that use Wi-Fi, Bluetooth, ZigBee and Z-Wave for connectivity.

The fact that so many of these devices come from China has helped keep prices low there, but that might not last. The report says manufacturing of these devices is expected to move to Southeast Asia, where labor costs are lower. This could mean China-made devices are moving upmarket should parts of the manufacturing industry persist there.

In Europe, data security is a paramount concern, sohome security devices should have an emphasis on secure software and services too. Europeans also look to automate their homes for different reasons. Accident prevention is expected to be a big motivator for device sales there. Things like smart smoke and flood detectors are expected to sell well. This shows the smart home security market is relatively robust worldwide. It's not just IP cameras driving sales. Various kinds of sensors are becoming big sellers, as well, including smart motion sensors.