Security Equipment Sales Projected To Grow 7 Per Cent Through 2016
Posted by Security Electronics and Networks | @Articles News | May 21, 2013, 7:00am AEST
The US-based research company said electronic products accounted for nearly 65 per cent of security equipment sales in 2011, with the segment expected to post much stronger sales gains than mechanical security products through 2016.
“Demand will be driven by the ongoing improvements in design that give electronic systems greater functionality, while also making them increasingly user-friendly and cost-effective,” the report said. “Not only will these improvements help boost market penetration, they will also spur a strong replacement and upgrade market.”
Products covered include locks and other mechanical security devices (fire extinguishers, safes, vaults, safety deposit boxes), access control and video surveillance systems, alarms (burglar, fire, panic/medical emergency, smoke, etc.), and other electronic security products (bomb and metal detectors, electronic article surveillance and anti-shoplifting systems.
The fastest-growing markets for security equipment will be China, India, South Africa and Turkey, each of which will post growth of more than 9 per cent annually through 2016, Freedonia said. The gains will result from rapid growth in gross domestic product, urban population and construction activity.
The North American security market will grow 6.5 per cent annually through 2016. The North American market will be supported by the economic rebound in the United States and increased penetration for security equipment in Mexico, the report said.
The commercial and industrial market accounted for nearly 65 per cent of security equipment sales in 2011, and Freedonia expects that it will remain dominant through 2016. Gains in this market will be driven by construction activity and the moderating cost of many advanced electronic security products.
While commercial sales will maintain a larger market share, the strongest growth for security equipment will be in the residential sector, Freedonia reported. Residential demand will be stimulated by increasingly affordable systems and by a high perceived risk of crime.
Freedonia analyst Dave Petina said security installers and integrators can take advantage of the increasing demand by being aware of the latest technological trends, particularly in video surveillance and home automation.
“Being able to integrate alarm capabilities with other functionalities will be a key competitive advantage in many developed markets,” he said. “Even in less developed regions, this type of multifunctional system can provide market access.”
Petina said false alarms continue to be an important issue for the security industry, not only in the United States and Europe but also in less developed markets.
“Systems that can reduce false alarms, whether through more sophisticated intrusion detection or video confirmation of events, can provide advantage.”