Security - Malaysia

Malaysia

The Security market in Malaysia is anticipated to witness a significant rise in revenue, with projections indicating a figure of US$56.9m in 2024.
This growth trajectory is expected to continue, with an estimated compound annual growth rate (CAGR) of 14.02% from 2024 to 2028.
As a result, the market volume is projected to reach US$96.2m by 2028.
In terms of adoption, the Security market is expected to witness an increase in the number of active households, reaching approximately 1.5m users by 2028.
This reflects a positive trend, indicating a growing interest in security solutions among Malaysian households.
To measure the extent of adoption, household penetration is a crucial metric.
In 2024, household penetration is estimated to be 9.1%, indicating that a small fraction of households have adopted security solutions.
However, this is expected to rise significantly by 2028, reaching a penetration rate of 16.0%.
When considering the average revenue per installed Smart_Home, the current estimation is approximately US$75.45 in Malaysia.
This figure represents the revenue generated by each installed smart home security system.
In a global context, it is noteworthy that in the United States leads the market in terms of revenue generation.
In 2024, in the United States is projected to generate a substantial revenue of US$6,883.0m in the Security market.
This comparison highlights the dominant position of the United States in the global security market.
"Malaysia's security market is experiencing a growing demand for advanced surveillance systems to combat rising crime rates."

Key regions: Asia, Japan, United Kingdom, Norway, Europe

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Analyst Opinion

The Security segment targets the prevention/detection of burglaries, notifications about hazards such as fire or water leakage, emergency calls and access control. Its development is mainly driven by the replacement of traditional devices with connected ones. Main growth products in this case are smart locks and smart security cameras. Companies from several different industries compete in this market. Next to traditional security companies (e.g. ADT) and tech start-ups (Canary or Alarm.com), media companies and connectivity providers (e.g. AT&T or Comcast) also play an important role due to the high amounts of data that need to be transferred, especially in the video surveillance case. Developments vary strongly with country-specific conditions like burglary rates.

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 segment. 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 digital products and services 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 twice a year in case market dynamics change.