Business growth and product innovation will bolster demand for industry products
New York, NY (PRWEB) March 03, 2014
The Electronic Access Control System Manufacturing industry produces smart cards, fingerprint scanners, biometric systems and other access control systems, including keypads. In 2009, the industry bounced back strongly when revenue expanded 8.3% due to the recession acting as a catalyst for growth, as financial strains may result in higher instances of theft, break-ins, as well as white-collar crime. Furthermore, the introduction of new products with enhanced access control capabilities caused businesses to increase spending. As a result, revenue for the Electronic Access Control System Manufacturing industry is expected to rise at an average annual rate of 6.5% from 2009 to 2014. With strong demand anticipated to continue going forward, revenue is expected to rise 4.1% in 2014, reaching $2.9 billion.
According to IBISWorld Industry Analyst Omar Khedr, “With favorable operating conditions and growing demand, a number of new firms have entered the industry.” The number of industry operators is expected to reach 339 by 2014, causing heightened internal competition. Moreover, a greater number of establishments has led to a broader range of products and larger research and development (R&D) departments. Firms in this industry have also been facing an increase in imported industry products from countries with low labor costs. Together, these factors have caused larger players to make strategic acquisitions in order to expand their product offerings, especially in biometric systems and integration capabilities. For instance, United Technologies Corp acquired General Electric's security division in 2010, providing the company with a strong portfolio of industry products.
“Industry demand is expected to remain strong as the economic recovery picks up,” says Khedr. In the five years to 2019, businesses and residential customers are both expected to invest heavily in the security market. Rising corporate profit margins will allow companies to invest and upgrade their electronic access control systems. Additionally, firms will also take advantage of new technologies, such as biometrics, which involve face or fingerprint recognition, providing opportunities for expansion. In addition, the availability of low-cost audio and visual intercommunication systems is likely to grow due to a strong recovery in the residential construction market. As a result, industry revenue is projected to increase in the five years to 2019.
For more information, visit IBISWorld’s Electronic Access Control System Manufacturing in the US industry report page.
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IBISWorld industry Report Key Topics
Companies in the Electronic Access Control System Manufacturing industry manufacture electronic access control systems, including card-based (proximity cards and smart cards), audio-based (intercom and telephone), video-based and keypad-based systems.
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