Fire Alarm System Market is expected to reach US$ 58.79 Billion by 2031

Surge in Fire Incidents Boosts Fire Alarm System Market Growth  

According to our latest market study on "Fire Alarm System Market Size and Forecast (2021–2031), Regional Share, Trend, and Growth Opportunity Analysis — by Technology, Product Type, and Application," the market was valued at US$ 35.86 billion in 2024 and is anticipated to reach US$ 58.79 billion by 2031. It is estimated to register a CAGR of 7.4% during 2025–2031. The report includes growth prospects in light of current fire alarm system market trends and driving the growth.

As per the National Fire Protection Association (NFPA), in 2022, the US experienced 36 large-loss fires or explosions, the second-highest in the past decade, including 29 structure fires and 7 non-structure fires (3 wildland/urban interface, 3 vehicles, and one outside a structure). These incidents caused an estimated US$ 1.39 billion in property damage, representing ~8% of total fire-related financial losses that year. The largest incident in the US in 2022 occurred at a gas distribution plant in Haven, Kansas, with a loss of more than US$ 200 million. Furthermore, the structural fires caused a total property loss of US$ 1 billion, accounting for ~81% of the total losses of large-loss fires. Eight of the structural fires occurred at manufacturing plants, four of which emerged from food-related processes, one in a maintenance equipment facility, one in a natural gas production plant, and one in an electronic appliance factory. These fires caused a cumulative property loss of US$ 256.4 million. Also, five fires broke out in storage properties: four in warehouses and one in a food storage building. These resulted in a collective loss of US$ 175.6 million. Two other incidents involved storage units: an outside fire and a vehicle fire. Four large-loss fires happened in structures under construction, three in apartment buildings, and one in a hotel. These fires caused a total loss of US$ 156.2 million. Three fires in industrial enterprises caused a total loss of US$ 243.1 million. One of the plants was responsible for gas distribution, one for electricity generation, and one for sanitary waste disposal. There were also three fires in stores and offices, with a total loss of US$ 6.7 million. Also, seven non-structure fires resulted in cumulative losses of US$ 351.8 million, or more than 19% of the total losses from all large-loss fires. In February 2025, at least six people were killed in a fire at a hotel construction site in South Korea's port city of Busan. According to India's fire brigade, the number of fire-reported incidents increased by 15%, from 4,417 in 2022 to 5,074 in 2023. High-profile fire disasters in residential, commercial, and industrial sectors have raised the need for early fire detection and prevention measures. Additionally, the MEA is witnessing continuous growth in the number of fire incidents. According to the Ministry of Interior, civil defense teams responded to 2,473 fires in 2023 in the UAE. The majority of these incidents occurred in residential areas, with homes accounting for 1,636 fires, up from 1,385 in 2022. Also, commercial buildings experienced 293 fires, followed by farms (128), industrial properties (106), and public service buildings (97). Therefore, the growing number of fire incidents fuels the need for fire alarm systems, which fuels the fire alarm system market growth.

Fire Alarm System Market Analysis – by Geography

Source: The Insight Partners Analysis

The scope of the fire alarm system market report focuses on North America (US, Canada, and Mexico) and Middle East & Africa (Saudi Arabia, UAE, and the Rest of Middle East & Africa. In North America, the US held the largest fire alarm system market share in 2024. The US is witnessing tremendous growth in its construction industry. According to the US Census Bureau, as of August 2024, the residential construction spending of the US was ~US$ 911,429 million, and the nonresidential construction spending was US$ 1,220,507 million. Such growth in the construction industry is expected to raise the demand for fire alarm systems as it helps provide faster response times from emergency services, detect fire in isolated areas, help in better planning in case of a necessary evacuation, meet regional health and safety codes, and keep essential operational assets safe. In addition, the country is witnessing a rise in the number of fire incidents. As per the National Fire Protection Association (NFPA), in 2022, local fire departments in the US responded to ~1.5 million fires. These incidents resulted in 3,790 civilian fire deaths and 13,250 civilian fire injuries. Also, the property damage caused by these fires was anticipated at US$ 18 billion. Also, in 2022, a fire department responded to a fire somewhere in the US once every 21 seconds. A house structure fire was reported every 88 seconds, a home fire death every three hours and fourteen minutes, and a home fire injury every 53 minutes. Further, 522,500 fires, or 35% of the total number of fires, started in or on structures. Also, 25% of the fires happened in residing properties, including one- or two-family homes, apartments, or other multifamily structures. Thus, the rise in the number of fire incidents in the US is likely to significantly impact the fire alarm system market forecast. 

In Europe, Germany held the largest fire alarm system market share in 2024. In August 2024, SPIE installed a modern data network and fire alarm system at the new SEW-Eurodrive smart factory. This move highlights the growing importance of cutting-edge technology in industrial settings, especially as industries in Germany continue to prioritize safety and efficiency. The implementation of this advanced infrastructure aligns with the country's broader trend of increasing automation and smart factory solutions, where the integration of digital networks and robust safety measures, such as fire alarm systems, plays a crucial role in minimizing risks and enhancing operational capabilities. With the rise of industrial IoT (Internet of Things) and connected devices, there's a heightened focus on the need for reliable fire alarm systems capable of integrating seamlessly with these complex networks. The demand for advanced fire detection technologies in Germany is surging in response to regulatory requirements, rising technological advancements, and increasing reliance on automated manufacturing environments. The market for fire alarm systems in Germany is expected to expand, owing to new industrial installations and the upgrading of existing infrastructure, with companies such as SPIE contributing to this growth by providing sophisticated solutions that meet the unique needs of smart factories such as SEW-Eurodrive's. 

Eaton Corp Plc, Bosch Sicherheitssysteme GmbH, Fike Corporation, Gentex Corp, Honeywell International Inc, Napco Security Technologies Inc, Schneider Electric SE, Siemens AG, Johnson Controls International Plc, Carrier Global Corp, and Mircom Technologies Ltd are among the key players profiled in the fire alarm system market report. Several other major players were also studied and analyzed in the report to get a holistic view of the market and its ecosystem. The market study provides detailed market insights, which help the key players strategize their growth.

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