Home security is an industry that had experienced a consistent upwards trajectory before the pandemic, but which has suffered from global trade disruptions and a widespread recession that has hurt consumer spending. The three major industry segments–cameras and surveillance, smart home monitoring and control, and alarm systems–have been affected by COVID-19 in different ways and for different reasons. Below is a breakdown.
Cameras and Surveillance
Sales of cameras and surveillance equipment have surged throughout the pandemic for a variety of reasons. More people working from home and, for parents, more time spent out of school and daycare for children has prompted many people to take keeping tabs on their points of entry more seriously. The increase in deliveries for many people has also meant a desire to better monitor doors and driveways.
There are many different camera styles and functionalities to consider when making a purchase, so it is a good idea to consult a security cameras guide before investing in anything. Property crime rates were already going up before the pandemic and they are likely to continue to increase as people reel from the economic fallout.
Smart Home Control
Smart home control is another facet of the home security market that had seen consistent growth up to 2020. While 33 percent of smart home device owners report that their usage increased during the pandemic, in other respects, smart home adoption has stalled.
Because of global manufacturing and supply chain disruption, global shipments of smart home devices have been forecasted down by almost 90 million units. There is speculation as to why things like voice-controlled smart homes have not increased as rapidly as predicted over 2020, which includes reduced spending due to uncertain economic times and resistance to adopting new behaviors that require people to yell orders at devices.
COVID has had generally negative effects on the residential alarm system market. The number of new alarm accounts with home security providers is only expected to grow by one percent. People have generally been willing to spend money on home alarm systems in both good and bad times–during the good because they have the disposable income, and the bad because property crime tends to go up–but the 2020 pandemic is different.
A mixture of DIY alarm systems eating into the market share of the big providers, a reluctance on the part of would-be buyers to allow representatives from the big companies to enter their homes, and a large scale economic downturn have all hurt the alarm segment of the industry.
The pandemic has had significant effects on the majority of industries, with very few escaping unscathed. The home security market has grown in some areas, stagnated in others and lost market share to new options in others. It remains to be seen whether people will once again allocate part of their disposable spending to home security and monitoring, especially as long-term economic dysfunction begins to set in, once societies are fully opened and people can resume something approximating their normal lives.