Alarm Monitoring Market - Forecast(2024 - 2030)

Alarm Monitoring Market Overview

The Alarm Monitoring Market size is forecast to reach US$ 60 billion by 2027, growing at a CAGR of 4.8% from 2022 to 2027. Alarm monitoring system is used for communicating between home security system and security service provider. The system control panel registers an emergency event and sends a signal to the central monitoring station, where the appropriate authorities are notified and sent to your home. Alarm Monitoring systems inform service providers about burglar, fire, and medical emergency at the location. This Alarm Monitoring system uses alarm sensors such as motion detection sensor, gas detection sensors, photo sensors, acoustic sensors and others to detect the emergency and switch on the alert system in action. It is used at various residential, commercial and public spaces across various industry verticals for safety purposes. The driving factors for this market include increasing crime rate, rise in fire accidents and other disasters, growing demand of high safety and security at public spaces and increasing government investments in Alarm Monitoring systems. However, high installation and maintenance costs and issue of false alarms are restraining the growth of Alarm Monitoring Market.

Alarm Monitoring Market Report Coverage

The report: “Alarm Monitoring Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Alarm Monitoring industry.

By Offering: Hardware, Software, Services (Installation services, Monitoring services, Maintenance services)
By Technology: Wired Telecommunication, Wireless radio network, Cellular wireless network, IP Network, Others
By Type of system : Perimeter Intrusion Detection System(Grade 1, Grade 2, Grade 3, Grade 4 ), Internal Security Alarm System
By Components: Sensors and Detectors, Surveillance camera (Doorbell camera, Outdoor camera, Indoor camera), Siren alarm, Smart Locks, Control panel, Operating software
By Sensors: Glass Break Detection sensors, Flood Sensors, Motion Detection sensors, Smoke and gas sensors, Temperature sensors, Pressure sensors, Beam Sensor, Seismic sensors, Others
By Input Signal: Analog Signal, Discrete Signal, Protocol Signal
By Alarm panels: Coded panels, Conventional panels, Addressable panels, Multiplex systems
By End user: Manufacturing, Infrastructure (Government and Public spaces, Corporate Offices, Residential, Commercial),Healthcare, Pharmaceutical, Energy and Power plants, Petrochemical , Automotive, Military and defense, Others
By Geography: North America (U.S, Canada, Mexico), Europe(U.K, Germany, France, Italy, Spain,Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa)

Key Takeaways

• The wired telecommunication segment held the largest share in the Alarm Monitoring Market segmented by technology. This is owing to the more reliable response system as well as cheaper installations and maintenance costs as compared to other communication technologies.
• The infrastructure segment held the largest share in Alarm Monitoring Market by end user, in 2021. This is attributed togrowing smart home residential projects, need for high safety and security at commercial spaces with large footfall of people.
• North America market held the largest market share of 37%, in 2021. This is due to increasing crime rates, increasing public awareness about Alarm Monitoring and other security systems. The insurance policy benefits provided by most of the firms are also a major driving factor of this market in North America
• Factors such as increasing crime rate, rise in government investments for Alarm Monitoring in public spaces, benefits by insurance policy providers, increasing smart city and smart home projects and increasing public awareness are boosting the growth of Alarm Monitoring Market.

Alarm Monitoring Market Value Share, By Geography, 2021 (%)

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Alarm Monitoring Market Segment Analysis- By Technology

The Alarm Monitoring Market by technology has been segmented into wired telecommunication, wireless radio network, cellular wireless network, IP network and others. The wired telecommunications segment held the largest share of 45%, in 2021. This is owing to reliable wiring connections, low installation as well as maintenance costs, no requirement for battery replacements and no risks of hacking of the wired telecommunication Alarm Monitoring system.In a wired Alarm Monitoring system, each sensor is connected to the main control panel with a cable that runs around the walls and door or window frames. The system uses a fixed connection to work and communicate for the tasks. This system is widely adopted for critical applications such as industrial and medical where precise and timely alarm systems are essential. In June 2021, Konnected Alarm Panel was designed to upgrade a residential wired alarm system with open and flexible nature of the Konnected hardware and automation integrations. A significant implementation is seen in Sunny Isles, Florida where the Konnected Alarm Panel Prois being used to monitor and and stop water leaks in several high end multimillion dollar residential condominium buildings. In addition to the high-end finishes and appliances, the Acqualina residences are wired in every room including bathrooms with category 6 ethernet cable and are fitted with passive water leak detection sensors under every sink, toilet, and appliances. Insurance industry reports have established that water damage resulted in over US$13 billion in damage and removal costs per year which were eliminated with the use of wired alarm panel system. Thus, safety and reliability in the alarm system saving costs of repair and maintenance has fuelled the growth of Alarm Monitoring Market.

Alarm Monitoring MarketSegment Analysis- By End User

The Alarm Monitoring Market by end user has been segmentedinto manufacturing, infrastructure (government and public spaces, corporate offices, residential, commercial), healthcare, pharmaceutical, energy and power plants, petrochemical, automotive, military and defense, other. The infrastructure segment held the largest share of 60%, in 2021. This is due to rapidly growing sub-segment of residential under smart home projects, increasing crime rates at public spaces and rise in safety concerns at corporate or government offices. This application infrastructure segment is also attributed to the insurance policies offering discounts with alarm monitoring installations and increasing government-initiated funding for incorporating alarm monitoring systems at public spaces. In September 2021, Interface Security Systems, a leading managed service provider delivering business security and intelligence solutions to distributed enterprises, announced that WKS Restaurant Group, one of the fastest-growing multi-brand restaurant franchisees in the US is relying on Interface’s managed video verified intrusion alarm monitoring to eliminate false alarm costs and standardize security operations across over 380 restaurants. Before the Interface, WKS was incurring about US$165,000 worth of false alarm costs. As a result of significant financial burden and security breaches has increased the demand of alarm monitoring and drives the growth of this market.

Alarm Monitoring Market Segment Analysis- By Geography

The Alarm Monitoring Market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). North America held the largest Alarm Monitoring Market share with 37%of total market size. This owing to the increase in crime rates such as thefts, rise in increasing public awareness about alarm monitoring and other security systems. The insurance policy benefits over alarm monitoring system installations provided by most of the firms are also driving the growth of this market in North America. One of the most well-known insurance companies in United States, All state provides a protective device discount on the insurance policy which includes installing alarm monitoring systems. In 2019, as per the Federal Bureau of Investigation (FBI) and the Bureau of Justice Statistics (BJS) reports, the property crime rate fell 55%, with big declines in the rates of burglary (-69%), motor vehicle theft (-64%) and larceny/theft (-49%) due to growing use of surveillance and alarm monitoring systems. Thus, effective results with the use of security systems and alarm monitoring system has led to growth of this market in North America. 

Alarm Monitoring Market Drivers

There has been a continuous rise in theft and other crime rate which is propelling the growth of the Alarm Monitoring Market.

The alarm monitoring system is used to communicate the signals from sensor network to system control system. These systems are used to prevent theft and burglary, prevent fire breaks, gas or fluid leakages and alert in case of emergency in medical or industrial sectors. Criminal activities often go unnoticed or difficult to catch the culprit due to lack of evidence and late discovery of the situation. However, using alarm monitoring system can ensure quick transfer of the information to the user and emergency services. According to the FBI statistics, a burglar strikes close to every 30 seconds in the US. That adds up to two burglaries every minute and over 3,000 burglaries per day. This rapid rate of increasing crime rate makes the use of alarm monitoring system essential in every home. In May 2022, Ajax-based security solution announced reduction in fuel thefts for Portugal-based transport company, Portugalenses Transportes, LDA. Trucks installed with alarm monitoring systems by Ajax with control panel connected to the vehicle battery, via Ajax 12V PSU. The hub uses 2G networks to communicate with the company control centre. In case of an alarm activation, the control panel activates the siren, sends notifications to the Ajax app on the driver’s smartphone and the Ajax PRO Desktop monitoring app, at PortugalensesTransportes control centre. Thus, rapid alert system and precision of alarms prevents a significant loss of the users. This reliability and instant notification by installing alarm monitoring system boosts the growth of Alarm Monitoring Market.

There is rise in frequent natural calamities and need of alarm monitoring systems for early preventive measures is driving the growth of this market

Alarm monitoring systems are also used for early warning and preventive measures, especially in case of natural calamities and disasters. There is a significant rise in numbers of natural calamities and disasters due to increasing human activities, pollution and many other factors. The natural calamities and disasters mainly include floods, earthquakes, tornados, hurricanes and others. These alarm monitoring provides an alert based on satellite information, sensor networks and weather forecast to take preventive actions. For example, Geoprevent, a company manufacturing monitoring systems and sensors states that the alarm monitoring detects glacier or rock instability and leads to an alarm warning for the ice or rock avalanche prior to a few hours, days or even weeks. This leaves enough time to evacuate and close endangered areas. The system detects the avalanche as early as possible and usually signals between 30 and 60 seconds to automatically close roads or railways. In March 2020, COPS Monitoring, the largest provider of wholesale professional alarm services in North America, announced that alarm monitoring services continued without interruption despite the loss of both power and communications at its Tennessee monitoring center as a result of the Nashville tornado. The combination of multiple sites, redundant technology, and distributive staffing made the COPS monitoring to stand unparalleled in any such calamity or disasters. Thus, the growing technology for preventive alert for natural calamities using alarm monitoring system is contributing to the growth of Alarm Monitoring Market

Alarm Monitoring Market Challenges

The rise in false alarm rate due to misinterpreted external conditions inhibits the further growth of Alarm Monitoring Market.

Alarm monitoring system functions on the basis of input from sensors of various receptors to alert the system. However, in certain external conditions, they tend to misinterpret the input signals and cause false alarm which may lead to unnecessary panic situation and wastage of time for emergency services. For instance, the smoke from cooking or cigarettes might get detected in smoke detector leading to the trigger of fire alarm which leads to the false alert. Such situation can arise in many alarm monitoring systems used in various verticals mainly due to highly sensitive sensors. However, using less sensitive sensors can increase the response time which may cause increased scale of damage. In 2021, according to Home Officedata report published shows the county’s Fire & Rescue Service responded to 5,070 call-outs in the 12 months up to September 2021. Of those, 34% were a result of false alarms from alarm monitoring system.The National Fire Chiefs Council revealed crews attend one false alarm almost every 90 seconds in the UK and can cost up to £450 a time, diverting precious resources away from genuine emergencies and increasing the service's carbon footprint. Hence, the issue of false alarm is a major concern in adopting alarm monitoring system which restrains the market growth.

Alarm Monitoring Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Alarm Monitoring industry. The Alarm Monitoring top 10 companies include:

• Bosch Security Systems
  
• Diebold Inc.
  
• Siemens AG
  
• Johnson Controls International PLC
  
• Rockwell Automation Inc.
  
• Honeywell International
  
• Schneider Electric SE
  
• Vector Security, Inc.
  
• Vivint, Inc. 
  

Recent Developments:

• In April 2022, Johnson Controls announced that it has acquired Security Enhancement Systems LLC (SES), a provider of mobile-based, keyless access control solutions used in critical infrastructure, including telecommunication towers for major providers. Security Enhancement Systems will add to Johnson Controls’ comprehensive portfolio of security and access control technology available, including security and access controls, video management, security as a service, IP cameras, door controllers and card readers. Thus, the expansion of security system technologies with alarm monitoring system helps in growth of the market.
•  In January 2022, Automaker Ford and ADT, a company that provides home and business security and alarm monitoring services, have announced the launch of a joint venture called Canopy that aims to address vulnerabilities in current vehicle security offerings. Ford and ADT have invested a total of $105 million in the joint venture. This helps in hiring, setting up the supply chain and logistics for the aftermarket product after the launch in the market. This unique product is predicted to aquire a major market share in automotive industry segment.
•  In December 2021, Pye-Barker Fire & Safety has announced acquisition of super regional systems integrator Mountain Alarm Fire & Security, and comes on the heels of the purchase of Yarnell Security Systems, based in Lancaster. Mountain Alarm is the preferred provider of alarm monitoring, installation, maintenance services, and inspection services for fire alarms, security alarms, CCTV systems, and access control systems. Mountain Alarm’s ability to acquire alarm companies, elevate the customer experience, and integrate those companies into their software systems will help the pye-barker gain momentum in the market revenue.
•  In October 2021, GeoArm, a leading provider of smart home solutions serving residential and business customers in the United States, announced the addition of M2M products and services to its website offerings. The end user can remotely download the RControl app on any Android or iOS device to arm/disarm the security system. With universal compatibility and ease of operation can easily add the M2M alarm communicator into most commercial fire alarm and burglary intrusion panels business in the Alarm Monitoring Market.

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