Electronic Security Systems: A Global Strategic Business Report
San Jose, CA (Vocus) October 25, 2010
Despite the popular perception that ever-present safety & security needs, and rising crime rates, which interestingly tend to escalate during periods of economic downturn, make electronic security systems recession proof, the market ironically has shown signs of marked weakening in the midst of steady deterioration in business climate. The length, breath, and duration of current recession has been unprecedented, and the contraction in business activity widespread across diverse industries including the traditionally perceived as resilient electronic security systems industry. The collateral damages wrought by the subdued global economy has been largely the result of distortions in economic variables, such as, drying up of debt markets, lack of capital investments, deep corporate budgets cuts, government scaling back of infrastructure-related projects revolving around city surveillance, and lack of liquidity in key end-use markets, among others. Widespread postponements, shelving and cancellation of new security projects have resulted in sharp declines in influx of new orders. Additionally, with the current emphasis lying squarely on surviving the crisis, scheduled system replacements, upgradations, and retrofits have been thrown into the back burner thus impacting replacement sales as well.
With most key end-use sectors i.e. banking and insurance, malls and multiplexes, IT sector and construction, collapsing like a pack of cards, growth in sales has been thrown off-track in most product markets, over the last two years. The worst hit industry verticals, banking and retail, have especially squeezed demand for electronic security systems. The forced delay in launch of new retail projects such as malls, chain retailers, and franchise outlets, as a result of financial crunch, have eroded new market opportunities. Meltdown in commercial and residential construction activities, sharp declines in new buildings constructions, reduced spends on renovation projects, have derailed demand for new installations of burglar alarms and access control systems. Uncertainties over the economic recovery still continue to dampen end-user spending confidence making the year 2010 a challenging year for manufacturers.
Despite the current struggles, the outlook for the future remains bright, since transient disruption in the economic climate like the current recession is not likely to leave an indelible mark on the market and prevention of terrorist attacks and detection of perpetrators will always remain vital. With recession now at its tail end, the market is expected to witness a quick resurgence of demand fundamentals, such as increase in commercial and residential building construction, improvements in personal disposable spends, and increase in infrastructure investments, which will help drive the electronic security systems in the post recession period. Growth in the post recession period will be primarily led by CCTV/Video Surveillance market, given that the market is expected to register substantial gains from the ongoing migration from analog surveillance to IP-based network video surveillance. Government support in the form of economic stimulus packages for key end-use markets such as retail, finance and IT augurs well for the future of electronic security systems market. Additionally, stringent insurance requirements will also help drive demand for access control equipment. Interestingly, a prolonged recession can also be a catalyst for growth in the electronic security systems market, as the financial pinch felt by employees and commoners alike can result in increased instances of theft, break-ins, shop-lifting and white-collar offences, thus throwing the focus back on effective, and efficient electronic security systems.
As stated by the new market research report on electronic security systems, Europe continues to remain the largest regional market for electronic security systems. Asia-Pacific is the fastest growing regional market, waxing at a CAGR of more than 5.0% over the analysis period. Enthused by burgeoning economies such as China and India, increase in foreign investments, and rise in new business establishments, Asia-Pacific has been witnessing increasing adoption of electronic security systems in recent years. By product, alarms represents the largest product market. CCTV/Video Surveillance Equipment market is the fastest growing segment waxing at a CAGR of more than 7.0% over the analysis period. The accelerated growth in adoption of network video surveillance solutions, and rising sophistication of video analytics are the major factors driving this robust growth in CCTV/Video Surveillance market.
Key players in the marketplace include Aiphone Co. Ltd., ASSA-ABLOY AB, Axis Communications, BIO-key International, Inc., Bosch Security Systems, Global Security Solutions, Guardian Protection Services, Inc., Gunnebo AB, Honeywell Security, Imprivata®, Inc., Ingersoll Rand Security Technologies, Integrated Security Systems, Inc., Kaba Group, L-1 Identity Solutions, March Networks Corporation, Panasonic Corporation, NAPCO Security Technologies, Inc., Netversant Solutions, Pelco, Legion Group plc, SecuGen Corporation, Securitas Direct AB, Niscayah Group AB, Siemens AG, Sony Corporation, Tyco International Ltd., United Technologies Corporation., Vicon Industries, Inc. Yoko Technology Corp., among others.
The research report titled “Electronic Security Systems: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, drivers, challenges, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in value sales for US, Canada, Japan, Europe, Asia-Pacific, Latin America and Rest of World markets. Product segments analyzed include Alarms, Electronic Access Control Systems, CCTV/Video Surveillance Equipment and Other Electronic Security Systems.
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About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
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