The Building Safety & Security market is an expanding global opportunity underpinned by increasing adoption in newly constructed buildings and an increasing number of retrofit devices being installed in existing buildings. Strategic alliances between construction companies and security vendors are resulting in high adoption in newly constructed buildings. Growing customer awareness, decreasing cost of security devices, increased fear of crime, ease of installation, and incentives from home insurance companies are factors propelling the growth of retrofit devices in existing buildings. Stringent regulations related to the installation of fire and safety devices are also driving the growth of both new building solutions and retrofit devices. The growth of this market also impacts the growth of other Application Groups, such as Building Automation.
This report summarises the status and forecasts from the Building Safety & Security Application Group found in the Transforma Insights Connected Things IoT forecast. The report provides a description of what is covered in the Application Group, as well as top-level figures from the forecast that provide detail on how many connected devices will be installed, the types of communication technology used and the total revenue opportunity. In this Application group we forecast Fire Alarms, Security Alarms and Security Cameras. Full details are accessible through the IoT Forecast tool.
This section first examines the growth opportunities in the global Building Safety & Security market, distinguishing between demand from newly constructed buildings and retrofit solutions for existing properties. It discusses how construction activity and strategic partnerships between construction companies and security vendors are supporting the adoption of safety and security applications in new buildings. For existing properties, it explores the factors driving retrofit demand, including rising customer awareness, lower device costs, concerns about crime, ease of installation and home insurance discounts. It also considers how stringent regulations governing the installation of fire and safety devices are driving adoption across both segments.
The section then examines how commercial and residential construction, alongside industrial facility expansion and maintenance, influences demand for security and fire detection products. It explains how economic conditions, local property demand and credit availability affect construction activity, while geopolitical conflicts and inflation create additional challenges. The section also considers how declining new construction activity in China, together with the withdrawal of international companies and the closure of manufacturing facilities, could affect short-term demand for these products. It further explores the growing importance of strategic alliances between security and fire alarm vendors and third parties, particularly homebuilders and real estate platforms. Examples include Guardian Alarm’s collaboration with Fischer Homes to provide smart home security solutions.
The section next compares do-it-yourself (DIY) security systems with professionally installed and monitored solutions. It discusses how the growing range of connected home devices gives consumers more choice, while also creating challenges around integrating products from different vendors and managing their installation and maintenance. It then considers the high initial and ongoing costs that can restrict adoption, despite greater awareness of the benefits of security systems and declining device prices.
The section also examines how emerging technologies are shaping the security and fire alarm market, with particular attention to low-power wide-area (LPWA) connectivity. It explains why technologies such as NB-IoT, LTE-M, and LoRaWAN are suited to alarm communications, which typically involve transmitting relatively small amounts of data. However, it adds that LPWA solutions can be more expensive than short-range alternatives such as Bluetooth, Wi-Fi, Zigbee and Z-Wave, while uneven network availability and the lack of a single international standard create challenges for manufacturers. The section also discusses the use of LPWA and cellular connectivity as complementary technologies.
Finally, the section explores the growing emphasis among Building Safety & Security companies on recurring monthly revenue rather than relying primarily on one-off installation sales. It explains how subscription fees for device operation and monitoring services can provide more consistent income, support higher gross margins and reduce exposure to fluctuations in market demand and wider economic conditions.
The market development section has been further segmented into the following subsections.
This section begins with an explanation of the drivers behind the growth of both connected and unconnected fire alarms (like stringent fire and safety regulations in many countries). It then talks about how various governments are trying to bear the cost of deploying fire alarms and how, at times, they face financial difficulties trying to do so at such a scale and pace. It then lists some government initiatives to roll out and deploy smart fire detection systems in residential and commercial buildings. This includes countries like the UK, Australia, the UAE, Hong Kong, New Zealand, and Belgium. Case in point, from November 2024, all new homes and consented renovations in New Zealand should have interconnected smoke alarms as the minimum fire safety system, and the interconnection between alarms may be wired or wireless.
It then examines differences in the adoption of smoke and fire detection systems across countries, highlighting how factors such as building practices and regulatory requirements can influence uptake. It then explores the evolution of connected smoke alarms, from wireless mesh technologies to devices that connect directly to Wi-Fi or low-power wide-area (LPWA) networks. Examples include smart batteries that enable existing alarms to send smartphone notifications, as well as detectors using technologies such as Z-Wave, Sigfox and NB-IoT.
The section goes on to compare connectivity options, considering factors such as power consumption, battery life and the benefits of connecting alarms directly to cellular or LPWA networks without relying on in-building infrastructure. It also examines the growing commercialisation of NB-IoT-based fire detection in China, including deployment initiatives by mobile operators. Finally, it discusses how connected smoke alarms can address the longstanding problem of dead or missing batteries through low-battery alerts and replacement notifications, while enabling remote monitoring of alarm events, device status and replacement requirements. This section also discusses some examples of relevant IoT deployments in this application, like REDI shopping mall in Helsinki selecting Panasonic smart smoke detection system.
This section charts the drivers behind the growing adoption of security alarms, like reduction in their cost and decreasing complexity in these products. It also charts some other reasons behind the growth in this market, including insurance policy discounts obtained with the installation of security systems. It also adds that the market is experiencing significant demand from schools, universities, and other educational institutions in the US, as a result of the national focus on the prevention of school violence in the country. It also takes into account the connectivity technologies that are gaining prominence in these devices, such as NB-IoT and LTE-M. For instance, FiSCHER Akkumulatorentechnik has introduced AlertLatch, an emergency exit security solution that leverages Deutsche Telekom’s NB-IoT for monitoring doors in real-time. Some relevant IoT deployments in this application have also been discussed, like Mayfair Florists deploying a security solution to prevent break-ins.
This section begins with the reasons behind the increasing adoption of security cameras, like the decreasing cost of installation of CCTV cameras and the availability of cheaper network connectivity. It also adds that a high penetration of smart home devices in developed countries in the Americas and Europe is resulting in greater adoption of security systems and security cameras as well.
It also considers some of the risks associated with them (like security cameras being prone to hacking) which may affect their adoption. For example, as per the National Cyber Security Centre (NCSC), smart cameras are one of the most vulnerable IoT devices for cyber-attacks. This section also discusses some examples of relevant IoT deployments in this application, like Sam’s Groceria deploying smart cameras at its stores.
The key vendors section lists some of the main providers of products and services related to the market such as Vivint, ADT Inc., Honeywell (Honeywell Home/Resideo), Johnson Controls, Hochiki Corporation, NAPCO Security Technologies, Siemens, Arlo Technologies, Samsung SmartThings, Ajax Security Systems, Ring, and Scout Security. The report provides profiles of the various vendors including aspects most relevant to this Application Group, such as product offerings, pricing, financial results, and technology.
In the market forecasts section, we provide a summary of the forecasts from the Transforma Insights IoT Forecast Database:
The report charts the growth in the number of devices, which will grow from 981
million in 2025 to 2.4 billion in 2035. Transforma Insights forecasts are compiled on a country-by-country basis. This report includes a regional summary, showing splits between Australasia, Greater China, North America, Europe, Japan, Latin America, MENA, Russia & Central Asia, South East Asia, South Korea, India & South Asia, and Sub-Saharan Africa.
Transforma Insights’ IoT forecasts include splits between the various connectivity technologies as follows: 2G, 3G, 4G, 5G mMTC, 5G non-mMTC, LPWA (non-mMTC), Satellite, Short Range, and Other. This section discusses which technologies will be used in the Building Safety & Security application group.
This part of the report discusses the market growth in terms of revenue (module revenue, service wrap revenue, and VAC revenue). Transforma Insights estimates that the revenue in the Building Safety & Security Application Group will grow at a CAGR of 8%.
