The US market for security products and systems is expected to increase 6.3 percent annually to $19.9 billion in 2016. Growth will be driven in large part by a strong rebounds in construction and capital investment spending from low 2011 bases, following a period of economic contraction and a tight credit environment. Advances will result from a perceived high risk of crime, despite a long-term trend of falling crime rates. Ongoing technological improvements that enhance the accuracy, ease of use, and speed of operation of security systems will also bolster spending, not only by spurring interest in upgrading existing security systems but also by improving market penetration. These and other trends, including market share and product segmentation, are presented in Security Products, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
Products that are closely tied to new construction trends will achieve the most robust sales growth as construction spending rebounds. Electronic access control systems and locks are expected to post the fastest gains of any security product through 2016. Advances for electronic access control systems will be driven by technological innovations that allow these systems to employ an increasingly sophisticated array of clearance options that are both more difficult to forge and easier to operate. Additionally, falling prices for many types of access controls are making these products more accessible to building owners looking to upgrade from conventional mechanical locks. Demand for locks, including mechanical and electromechanical products, will be driven by the recovery in building construction, since locks form the base layer of security in nearly all buildings. The expected recovery in existing home sales will also support demand for door locks, since many new homeowners replace locks after moving in.
Most markets for security products are expected to post solid gains through 2016, supported by economic recovery and a rebound in many types of building construction. The fastest gains are expected in the office and lodging market, driven by particularly strong growth in construction activity. In addition, demand will be supported by the adoption of more advanced access control systems and electronic door locks in many of these buildings. The consumer and industrial markets will also post above average gains, as many homeowners and businesses will undertake investment projects that were put off during uncertain economic times. The air transport market will continue to achieve growth that exceeds the industry average in light of government regulations and ongoing investment in new technologies, including advanced imaging systems and other contraband detection.
The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.
