Security - South Africa

South Africa

Revenue in the Security market is projected to reach US$107.7m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 11.56%, resulting in a projected market volume of US$166.8m by 2028.
In the Security market, the number of active households is expected to amount to 5.2m users by 2028.
Household penetration will be 7.5% in 2024 and is expected to hit 24.7% by 2028.
The average revenue per installed Smart Home currently is expected to amount to US$75.09.

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Analyst Opinion

The Security market in South Africa has been experiencing significant growth in recent years, driven by various factors such as increasing crime rates, technological advancements, and the need for enhanced security measures in both residential and commercial sectors.

Customer preferences: In South Africa, customers are increasingly prioritizing security solutions that offer comprehensive protection and advanced features. This includes a growing demand for integrated security systems that combine surveillance cameras, access control systems, and alarm systems. Customers are also seeking solutions that can be remotely monitored and controlled, allowing for real-time response to security threats.

Trends in the market: One of the key trends in the South African security market is the adoption of smart security solutions. With the advancement of technology, customers are increasingly interested in security systems that leverage artificial intelligence, machine learning, and data analytics to provide proactive security measures. These solutions can analyze patterns and detect anomalies, alerting authorities or security personnel to potential threats. Another trend in the market is the increasing use of biometric technology for access control. Biometric solutions such as fingerprint recognition, facial recognition, and iris scanning are gaining popularity as they offer a higher level of security compared to traditional access control methods like keys or access cards. This trend is driven by the need for stricter access control measures in high-security areas such as government buildings, financial institutions, and airports.

Local special circumstances: South Africa has a high crime rate, which has significantly contributed to the growth of the security market. The country faces challenges such as burglary, car theft, and armed robberies, which have led to a greater emphasis on security measures by individuals and businesses. This has created a favorable environment for security companies to thrive and expand their offerings.

Underlying macroeconomic factors: The South African economy plays a crucial role in shaping the security market. Economic factors such as GDP growth, disposable income, and consumer spending patterns influence the demand for security solutions. As the economy continues to recover and grow, consumers and businesses are more willing to invest in security measures to protect their assets and ensure the safety of their premises. In conclusion, the Security market in South Africa is witnessing significant growth due to increasing crime rates, technological advancements, and the need for enhanced security measures. Customers are increasingly opting for integrated security systems and smart solutions that leverage advanced technologies. The high crime rate in the country and the growing economy are key factors driving the demand for security solutions.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of smart home products, excluding taxes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market category. As a basis for evaluating markets, we use the Statista Global Consumer Survey, market data from independent databases and third-party sources, and Statista interviews with market experts. In addition, we use relevant key market indicators and data from country-specific associations, such as household internet penetration and consumer spending for households. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting innovative products due to the non-linear growth of technology adoption. The main drivers are GDP/capita, level of digitization, and consumer attitudes toward smart home integration.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated once a year, in case market dynamics change we do more frequent updates.