Growing Security Concerns and Demand from Developing Markets Drives the Electronic Security Systems Market, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Electronic Security Systems markets. The global market for Electronic Security Systems (ESS) is projected to reach US$62.5 billion by 2018, primarily driven by growing security concerns against the backdrop of increasing instances of terror strikes, campus violence, vandalism and resulting need for personal safety and security at public and private properties. Continued rise in demand for ESS in developing markets, emergence of CIVETS as new hunting grounds for ESS manufacturers, and gradual improvement in construction activity in the US after a prolonged slowdown, also augurs well for the market.

Electronic Security Systems: A Global Strategic Business Report

Follow us on LinkedIn – Security and safety are key concerns for enterprises, industrial establishments and the common man. Events of security infringement at key infrastructure facilities right from World Trade Center attacks, the J.W. Marriott Hotel bombings, Madrid train bombing to the most recent incidents such as terrorist attack at Mumbai Taj Hotel, and the Colorado shooting, have truly underscored the need for safety and security at buildings/facilities, thereby prompting both developed and developing countries to invest in advanced security solutions. Sound security measures taken by corporations to overcome liability losses caused by workplace violence, theft, and other instances of security breach, is helping drive growth in the market. The market will continue to benefit from the rise in the number of commercial and residential building renovations and new constructions, since the scenario opens up opportunities for installations of highly advanced security systems, a trend that will be further supported by regulatory norms that mandate building owners to upgrade to more modern digital security systems.

Bolstered by strong new construction activity, developing countries are poised to turbocharge growth in the market, counterbalancing the relatively weaker growth in developed economies, which continue to be saddled with conditions likely to persist into the foreseeable future, such as, widening fiscal deficits, depressed GDP growth, federal austerity measures, capital raising constraints, increased taxes and weak/anemic recovery of the construction industry. Recovery of the construction industry in the Eurozone region remains especially frustrated by the periodic flaring up of Europe’s financial problems. Against this backdrop, Asia-Pacific, Russia and Latin America will drive growth in the next few years encouraged by burgeoning economies, increase in foreign investments, mushrooming of new business establishments and increase in crime rates.

Large population base in countries like India and China will propel demand in the short to medium term. In the longer-term, a new group of countries will emerge over the horizon dubbed the CIVETS (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) to drive future growth. These countries are being touted as the next generation of tiger economies characterized by rapidly growing domestic consumption, rising middle class, cheap labor (cheaper than China & India) favorable demographics such as large base of young, affluent and employed population, unlike the aging, retiring baby boomers in the developed countries. Also, vigorous ferreting of opportunities in the BRIC countries will diminish the potential for manufacturers to achieve first mover advantages in these markets making CIVETS a perfect haven for manufacturers seeking international expansion. Ample opportunities exist in the BRIC & CIVETS regions given the subtle shift in geopolitical power and standard of living from west to east.

Another noteworthy trend is the shift in preferences towards integrated electronic access control systems & advanced network systems. Given their ability to enable the integration of existing access control systems with other security services, IP based open-architecture systems will witness increased demand in the next few years, thereby adding to the revenue stream. Access control systems that offer remote access via web browsers or virtual private networks (VPNs) are turning out to be highly popular among businesses organizations, especially SMBs, thereby driving access control system installations. Biometric technologies such as voice and face identification solutions, iris scanners, hand geometry systems, and fingerprint scanners also offer bright prospects for the biometric access control market. Poised to gain are biometric physical access systems, which seamlessly combine with time & attendance, payroll and other human resource application systems.

The electronic security systems market during the 2007-2009 recession period witnessed significant erosions in growth momentum, despite the popular perception that ever-present safety & security needs and crime rates actually tend to escalate during periods of economic downturn. This was primarily because of the unprecedented length, breath, and duration of the recession and the level of contraction in business activity across diverse industries, which was the sharpest in comparison to previous recorded recession periods. Given that most key end-use sectors including banking and insurance, malls and multiplexes, IT sector and construction collapsed like a pack of cards during the recession, growth in sales was thrown off-track in most product markets. The worst hit industry verticals, banking and retail, 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, eroded new market opportunities in the market. Widespread postponements, shelving and cancellation of new residential and commercial construction projects too forced sharp declines in influx of orders for new security implementations.

While the market in most regions continues to recover, the market in Europe is running into fresh set of challenges. With efforts still underway to prevent Greece's towering debt crisis from tearing apart the unified currency, Europe is still mired in a crisis of confidence. Despite the mixed growth prospects being witnessed, largely referred to as the North-South divide, the aggregate impact on the European construction industry is nevertheless depressing with recovery being forecasted only after the year 2014. For instance, investments in the construction sector in Europe have declined by over 8% beginning from the year 2008. Currently in Europe, new residential construction has shrunk by over 30% from the peak witnessed in the year 2006, while non-residential building contracted by 18% during the same comparable period. All of the factors are having a corrosive effect on the market’s growth. However, the relatively less steep declines in residential and non-residential renovations, provides a ray of hope for the electronic security systems market. Key reasons cited for the better performance of the renovations sector is the EU Government’s emphasis on green and energy efficient buildings. As sustainable constructions emerge to represent the domestic construction industry’s new future, the flurry of renovations is poised to benefit the electronic security systems market.

As stated by the new market research report on Electronic Security Systems, Europe and the United States dominate the world market, while Asia-Pacific represents the fastest growing regional market, trailing a projected CAGR of 9.7% over the analysis period. Though Alarms continues to represent the largest product market, growth in the upcoming years will be primarily driven by CCTV/Video Surveillance Equipment. Accelerated migration from analog to network video surveillance solutions will continue to drive growth in this market segment.

Key players in the marketplace include ASSA-ABLOY AB, Axis Communications, Bosch Security Systems, Diebold Inc., Fermax Electronica S.A.E, Global Security Solutions, Guardian Protection Services, Inc., Gunnebo AB, Identive Group, Inc., Honeywell International Inc., Huviron Co., Ltd., Imprivata®, Inc., Ingersoll Rand Security Technologies, Kaba Group, Linear LLC, March Networks Corporation, NAPCO Security Technologies, Inc., Niscayah Group AB, PAC International Ltd., Panasonic Corporation, Schneider Electric SA, SAFRAN Group, Secom Co., Ltd., SecuGen Corporation, Securitas Direct AB, Siemens AG, Sony Electronics, Inc., Toshiba America, Inc., Tyco International Ltd., UTC Fire & Security, and 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 the 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.

For more details about this comprehensive market research report, please visit –

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
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