Smart Alarms Are the Future of Home Security – And Matter Is Leading the Charge

As smart home technology continues to proliferate, it is driving increased demand for home security systems. Smart home security is a critical component of modern smart home ecosystems today. This trend has been accelerated by the COVID-19 pandemic and subsequent lockdowns, which have resulted in people spending more time at home and prioritising home security, further fueling the market's growth.

Smart alarm systems have emerged as a key product category within the smart security market. SafeHome’s 2023 Home Security Market Report reveals that a significant portion of American households (around 72%) use at least one home security device. Around 39 million alarm systems—approximately 32% of households—are equipped with smart alarm systems. These statistics highlight the growing consumer preference for smart security solutions and the increasing integration of advanced technologies into home safety.

Key Characteristics of the Smart Alarm Market

The smart alarm market demonstrates three significant characteristics. First, consumer demand for security is rising, driving the market's expansion. Second, the market is highly fragmented, with many regional and local brands dominating. Lastly, the Matter protocol is pivotal in pushing the industry toward wireless solutions.

Market Fragmentation

Smart alarm systems are primarily sold through B2B (business-to-business) channels. Many professional security companies purchase smart alarms in bulk as part of their comprehensive security offerings for commercial clients and large institutions. Real estate developers and property management companies are also significant purchasers of smart alarm systems. Additionally, some manufacturers collaborate with OEM partners and system integrators to embed alarm systems into broader smart home or security solutions, then sold to various end users.

In recent years, with the rise of smart home devices and the growth of e-commerce, more smart alarms have been sold directly to consumers. However, B2B remains a significant sales channel, giving the market a distinct localisation dynamic. Local manufacturers have stronger connections with regional businesses and can provide faster, on-the-ground support when needed. This localised approach significantly contributes to the market's fragmented structure.

Overall, the smart alarm market is highly decentralised, with a low market share concentration. The industry is primarily composed of small- to medium-sized enterprises. The major players include ADT Inc., Honeywell International Inc., Johnson Controls International PLC, Hangzhou Hikvision Digital Technology Co. Ltd, Abode Systems Inc., and Ajax Systems.

Matter Protocol: Opening New Doors for Businesses

Wired alarm systems have historically held a significant share of commercial and industrial security markets due to their maturity, lower costs, and high stability. However, their complex installation process and lack of scalability have limited their growth in the home and small business sectors. As wireless technology continues to evolve and users increasingly demand flexibility and convenience, wireless alarm systems have experienced rapid growth in recent years. Wireless alarms are easier to install, more scalable, and have lower maintenance costs, making them a crucial part of the smart home landscape.

With the full development of 5G, IoT technologies, and the smart home ecosystem—particularly with the rollout of the Matter protocol—the market for wireless alarm systems is expected to expand even further. The Matter protocol enables interoperability among smart alarm systems and other devices. This interoperability represents a significant change for consumers. Matter ensures that their devices can seamlessly work with any other Matter-enabled platform. A unified ecosystem allows for more complex automation scenarios. For example, consumers can integrate smart lighting with home security systems, allowing lights to adjust automatically based on the security status of their home. They can also create custom automation programs to optimise energy use during peak hours. Enhanced interoperability further drives the adoption of wireless alarms in consumer homes.

It’s worth pointing out that the Connectivity Standards Alliance (CSA) is also highly focused on penetrating the Matter protocol into the B2B market. They’ve assembled the Pro Home & Building Tiger Team, which is dedicated to ensuring the Matter protocol finds its footing in commercial markets. The team is developing professional installation and maintenance tools designed for B2B scenarios, making it easier to deploy and manage Matter devices and providing businesses with more reliable support. This boosts the efficiency of smart home device installations in commercial settings and accelerates the adoption of Matter-enabled smart alarm products in the B2B market.

As of September 2024, door and window sensors, smoke and CO alarms, and leak and frost detectors have all been included in the list of devices supported by the Matter protocol. According to the CSA website, around 60 smart alarms have been Matter-certified. More alarm systems and sensors are expected to gain Matter support, further expanding the ecosystem.

Looking at the broader smart alarm market, the shift toward wireless may introduce more unpredictability to the localised market dynamics. If alarm manufacturers aim to expand beyond local markets and sell more widely across regions, adopting the Matter protocol can improve product interoperability and provide companies with a competitive edge.

This article presents our analysis of the potential development of Matter and Thread Integration.

HooRii Technology, an early advocate and promoter of Thread technology, specialises in developing, testing, certification, and mass-producing Matter and Thread products.

Leveraging its extensive market experience, HooRii Technology has introduced a range of smart alarm modules, including a recent collaboration with Nordic Semiconductor to launch a smart smoke and carbon monoxide alarm module. These modules offer reliable, ultra-low-power wireless Matter 1.3 connectivity and seamless integration with other smart home devices.

For more information, please visit hoorii.io or contact us at contact@hoorii.io.