Professionally Monitored Alarms in North America Projected to Reach 42.9 Million by 2028

Key Takeaways

The home and small business security market is growing, particularly in professionally monitored systems, with North America reaching 36 million systems in 2023.
The market is expected to grow at a CAGR of 3.6% in North America and 4.7% in Europe, indicating significant expansion opportunities.
ADT and Verisure are the leading providers of professional monitoring services, benefiting from the low penetration rates in residential security markets.

Market Overview

Berg Insight has released a report revealing insights into the home and small business security market, segmenting it into three primary categories: local, self-monitored, and professionally monitored security systems.

Local systems are designed to emit alarms solely to deter intruders without remote monitoring. In contrast, self-monitored systems notify owners via text messages, emails, or smartphone app alerts upon activation. On the other hand, professionally monitored systems connect to an Alarm Receiving Centre (ARC), which can respond by dispatching security patrols and contacting emergency services when activated.

As of the end of 2023, the number of professionally monitored alarm systems was 36.0 million in North America and 19.0 million in Europe. This segment is projected to grow at a compound annual growth rate (CAGR) of 3.6% in North America, potentially reaching 42.9 million systems by 2028. Europe’s market is expected to expand at a CAGR of 4.7%, aiming for 23.9 million systems in the same timeframe.

Key Players and Trends

The traditional security systems market in both Europe and North America is dominated by specialist home security firms such as ADT, Verisure, Vivint, and Brinks Home. Additionally, larger companies including Prosegur, Securitas, and G4S provide security services. Telecommunications companies and utilities also participate, with providers like Comcast and Telus offering security solutions alongside their primary services.

DIY security systems typically include self-monitoring features as standard, with professional monitoring available as an optional service. Companies like SimpliSafe, Ring, and Arlo are notable players in this segment.

ADT and Verisure lead the professionally monitored systems market, where ADT focuses on U.S. operations, serving over 6 million customers, while Verisure operates in 13 European countries and has more than 5 million customers across Europe and South America.

Market Potential and Future Trends

According to Martin Apelgren, principal analyst at Berg Insight, the relatively low penetration rates of alarm systems—approximately 6.3% in Europe and 21.1% in North America—highlight substantial growth opportunities for security solution providers. The increasing integration of interactive services, allowing users to remotely control their systems and access live or recorded video, is becoming standard in the industry.

Looking ahead, the synergy between alarm systems and smart home technology is expected to grow, adding considerable value to security solutions for homes and businesses. This integration is anticipated to enhance user experiences and promote further adoption in an evolving market, providing a promising outlook for both consumers and service providers.

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