Thursday, 27 July 2017

Monitored alarm systems in Europe, N America reached 39m at end-2015

Berg Insight
Thursday 14 April 16

According to a new research report by Berg Insight, the number of monitored alarm systems in Europe is forecasted to grow from 8.4 million in 2015 at a compound annual growth rate (CAGR) of 4.0 percent to reach 10.6 million in 2020. In North America, the number of monitored alarm systems is forecasted to grow at a CAGR of 3…

According to a new research report by Berg Insight, the number of monitored alarm systems in Europe is forecasted to grow from 8.4 million in 2015 at a compound annual growth rate (CAGR) of 4.0 percent to reach 10.6 million in 2020. In North America, the number of monitored alarm systems is forecasted to grow at a CAGR of 3.0 percent from 31.0 million at the end of 2015 to 36.0 million at the end of 2020. Small alarm systems for businesses and private homes can be divided into two main categories – local alarms and monitored alarms. The simplest type of local alarm only reacts to activation by ringing bells to alert the surroundings and scare off intruders. A more advanced type of local alarm is a self-monitoring alarm. Upon activation, this type of alarm informs the owner of the premises by sending a text message or push notification. Monitored alarms are connected to an Alarm Receiving Centre (ARC) that can respond to an activated alarm by contacting the police or dispatching a security patrol.

There is still a significant growth potential for monitored small alarm systems, especially in Europe where the total penetration reached only 3.5 percent of all businesses and households at the end of 2015. “The penetration of monitored alarm systems in North America is much higher than in Europe and the corresponding figure was in this region 21.0 percent at the end of 2015”, says André Malm, Senior Analyst at Berg Insight. Important drivers for increasing adoption of monitored alarm systems in the residential segment include economic development, the level of homeownership, as well as new home construction activity. However, the arguably most important factor for market growth is active marketing and sales led by specialist alarm service companies and new market entrants from the home automation industry. “Alarm systems are becoming more valuable for customers as the scope of offerings are being expanded to include detection of fire, carbon monoxide and water leaks, as well as home automation features such as lighting and thermostat control”, continues Mr Malm. “While home automation features are likely to bring additional value for customers and thus reduce churn rates, the willingness to pay additional monthly fees for these features among a broader customer base is yet uncertain”, concluded Mr Malm.


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