International. The shutdown of the 2G network in the United States in 2017 had a ripple effect on the intrusion alarm market, which mainly affected sales of control panels and communication modules.
With many traditional systems using 2G or public switched telephone networks (PSTN) as communication pathways for pre-closure alarm signals, the imminent mobile network renewal required upgrades to intrusion alarm signaling modules.
The increase in equipment replacement rates in the immediate period for the closing date resulted in a much smaller replacement market in the following years. In fact, according to IHS Markit's most recent research on the global intrusion alarm market, control panel shipments sold to the U.S. market will experience a compound annual decline of 4.9 percent between 2017 and 2022.
Advances in communication technologies
Advances in telecommunications technologies make intrusion alarm systems more versatile, increasing the speed and stability of communications between sensors, control panels and alarm reception centers. However, the adoption rate of the latest communication technologies in the intrusion alarm industry has been quite slow.
While 4G connectivity has been available since 2009, 4G communicators were not frequently used with intrusion alarm systems until recently. Data packets sent from traditional intrusion systems are small and require little bandwidth for transmission, but as more devices, especially video cameras, are added to intrusion alarm systems, alarm demands, and signal transmission capability. With the promise of 5G offering much higher speeds and connection stability, the technology could open up opportunities for further product and system innovation.
The role of 5G
Traditional intrusion alarm systems have relied on PSTN communication and General Packet Radio Services (GPRS) for signal transmission. Due to the increased demand for signal transmission capacity, due to the increasing use of video cameras with security systems, and the increasing number of sensors installed in an average system, an alternative communication route was required: Internet Protocol (IP) communication performed that role. Although this protocol has been implemented in a large number of systems around the world, IP connectivity depends on the robustness and stability of the Internet network supplied to the home or building. They can be compromised in a number of ways, so IP is often used as a backup communication channel to the primary GPRS channel.
In the world of The Internet of Things (IoT) for residential and commercial applications, devices equipped with 5G-capable chipsets can offer superior battery life and much lower power consumption in wired systems. This functionality is crucial to reduce the overall maintenance costs of the system, increase its longevity and ensure signal transmission stability that is far superior to existing technologies. In residential systems, the benefits of longer battery life and better transmission capacity could enable live video verification of intrusion alarms on a wider scale. In commercial systems, 5G connectivity could support the deployment of smart buildings that seek to improve the environmental footprint of commercial buildings, while offering the benefits of automation.
5G could accompany cloud technologies to enable real interconnected environments and leverage Big Data. While the cloud has enabled the processing of large data sets from a variety of home and building systems, 5G could greatly speed up transmission between systems, while improving connection stability. These benefits are particularly important for high-security applications where the costs of undelivered or delayed signals can be very high.
Too early to say?
5G is still at a very early stage of adoption and deployment. The current global coverage of the 4G network is not universal, as some countries only have partial coverage. This lack of 4G coverage reduces the popularity of this frequency for alarm communication, as the service offered by the 5G-ready team may not work.
Significantly higher deployment costs at the national level can lead to postponement of deployments across the country, making investment in 5G technologies for intrusion systems more dangerous for manufacturers who do not prioritize 5G in their home markets. International markets can offer an opportunity.
5G technology is just beginning to be developed in certain countries, and its full potential is yet to be realized. Any IoT device or security system equipped with 5G-capable chipsets is likely to experience a steep rise in prices, before the technology can become mainstream, such as 3G and 4G. For end users to accept a significant price increase, the comparable functionalities offered by these systems would have to be significantly higher than those currently offered. In the residential sector, these offerings can only resonate with the smartest users of the intrusion alarm, mainly those who are interested in advanced ultra-smart home security systems. In commercial systems, the benefits of 5G can be more easily realized in smart buildings that integrate intrusion alarm systems with other building systems or with high-security applications.
5G offers a more capable alternative to 3G and 4G communication paths, particularly for feature-rich systems that integrate video devices. Higher resolution cameras require better bandwidth, before they can send sizable images over the network. However, transferring large amounts of data over cellular networks is likely to result in higher data costs for system owners.
The volume of data transferred over 5G networks will be huge, which has strengthened existing concerns about the cybersecurity of big data and the potential for misuse or breaches.
Opportunity versus need
5G could be the technology that offers the best of all the communication technologies available to the security industry. However, regulations covering intrusion systems in many countries require two-way communication for maximum confidence in a system's ability to send intrusion alerts. In other systems, IP communication has already met the demand for alternatives to cellular technologies. The ultimate test for 5G in intrusion alarm systems will be on the question of whether 5G is necessary to achieve what modern and future intrusion alarm systems can do. However, seizing the opportunity for innovation, which 5G can offer, could help make future intrusion systems more efficient and capable.
Database of intrusion monitoring and alarm services
This 2018 study provides an assessment of the intrusion monitoring and alarm market, including significant trends over the next five years. The report provides detailed estimates of market revenue and shipments as of 2016, with a base year of 2017 and forecasts through 2022. It also estimates the market share of major vendors in each product category.
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