GLOBALLY the market for security products will total $US23.4 billion at the conclusion of 2013, according to research firm Memoori Business Intelligence.

The study reports that the market in China has forged ahead at the highest rates of growth recorded in the industry, and its aggregate growth within the past five years has not slowed down. Despite the fact that their penetration has increased by almost 60 per cent during this time, leading western IP companies have failed to assert themselves in what will become the biggest single market in the world, according to Memoori.

In the report titled “The Physical Security Business 2013 to 2017,” the research firm states that video surveillance represents 52 per cent of that number, bringing in $12.26 billion. Intrusion alarms followed with $6 billion (26 per cent) with access control trailing at $5.11 billion (22 per cent). 

In 2013, combined product sales grew by 8 per cent with growth in the video surveillance market achieving 12 per cent, access control 9 per cent and intrusion alarms 2 per cent. The report also credits the growth in IP network video surveillance (30 per cent) with the increased demand for physical security equipment.

The research firm notes that despite the poor economic conditions worldwide, the physical security equipment market has squeezed out more sales and investment dollars than expected. This is attributed to the fact that the industry continues to deliver products and services that meet customer value propositions, such as increasing productivity and reducing operating costs while delivering return on investment (ROI).

The analysis of the structure of the industry indicates that a small group of leading edge companies that are relatively new starts in the business are taking the lead in the products market. These providers have taken the opportunity to use emerging technologies to produce products that can deliver on customers’ requirements. 

By contrast, the major conglomerates’ share of the product market has declined and they have failed to correct this through their normal process of growth through acquisition.