Issue link: http://read.dmtmag.com/i/31496
2 SECURITY STATS www.securitysystemsnews.com FEBRUARY 2011 SECURITY SYSTEMS NEWS SECURITY STATS World demand for mechanical, electronic security equipment to hit $100 b by 2014 By Daniel Gelinas A recent report from Freedonia Group forecasts significant growth in the overall world demand for security equipment, which is forecast to reach $100 bil- lion by 2014. Security equipment encompasses mechanical aspects such as locks and safes, as well as electronic components such as traditional intrusion alarm sensors Growth in North American demand for security equipment in billions of USD like motion sensors, access control, and surveillance. The largest portion of the world market is the North American market, which will see the market value of security equipment grow from $14.5 billion in 2009 to $19 billion by 2014. According to Freedonia analyst Jennifer Mapes, this should be welcome news for integrators after an economic downturn that slowed technological advancement and deadened consumer spending. “We’re looking at a rebound in Freedonia Group 2011 residential construction. We’re talk- ing about increased development of new products, which always spurs security equipment purchases,” Mapes said. She said that along with increased product development there was a desire for cutting edge technol- ogy. “All those sorts of innovations encourage people to purchase even before the useful lifespan of their equipment has passed.” Another driver for growth, how- ever, is a holdover from the depths of the economic downturn. “The real and perceived secu- rity risks clearly drive security purchases as well,” Mapes said. “There are people, for instance, who see something on the news about crime in a nearby urban area and they then project that crime risk on themselves.” Mapes said that while there would be growth, there were definitely still stumbling blocks in the way. “A lot of it depends on exactly what’s going to happen with eco- nomic change,” Mapes said. “Is the economy really going to come back the way we all expect? Are people going to be willing to invest in new technology, in the latest and greatest innovation, or will they be willing to settle for what they already have? At what point do people decide the amount they’ve spent on their security is sufficient?” Mapes also noted that other fac- tors will temper expected growth. “You get some pieces of equipment that are becoming less expensive, but on the other hand advanced systems with increased functional- ity have higher prices,” she said. “So the two balance each other out.” Mapes also noted that advanc- es in IP standards development and the resultant interoperability of once disparate systems will continue to greatly impact the overall growth of the securi- ty equipment market in North America. Mapes said the average installer can get ready to take advantage and be part of the growth by getting educated. Jennifer Mapes “Integrated systems is a real growth area right now. People want their security measures to be integrated with other building functions,” she said. “You start developing some of these standards for IP systems so that they can func- tion together so that somebody can control their equipment remotely, and that’s a driver for growth … Prior to the establishment of standards the integrated systems wouldn’t work that well, so what was the point?” SSN