Cleveland 4/3/2013 2:05:00 AM
News / Business

World Security Equipment Demand to Reach $117 Billion in 2016

World demand for security equipment will advance 7.0 percent annually to $117 billion in 2016.  The fastest gains will be in parts of Asia, Eastern Europe, Africa, and the Middle East where security markets are relatively underdeveloped.  Gains will be fueled by greater economic growth, new business formation and foreign investment activity, rising urbanization, and growing middle and upper class populations.  In general, demand for security equipment is also driven by the real and perceived risks of crime and the belief that public safety measures are insufficient.  Electronic security products accounted for nearly 65 percent of total global security equipment demand in 2011.  The commercial and industrial security equipment market accounted for nearly 65 percent of sales in 2011.  These and other trends are presented in World Security Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

Among major individual national markets, the fastest increases in security equipment demand will be in China and India, which will each see growth in excess of 10 percent annually through 2016.  These markets will benefit from fast increases in GDP, urban population, and building construction activity.  Despite rapid gains over much of the past decade, the use of many types of security equipment in these countries remains low compared to more mature markets.  This is true even in China, which grew to be the largest market for security equipment in 2011 after sales more than doubled between 2006 and 2011.  However, spending on security products per person in China in 2011 was still less than half the level in the US or in much of Western Europe.  Through 2016, China is forecast to account for more than one-quarter of global gains in security equipment sales.

Security equipment demand in North America is expected to rise 6.5 percent annually through 2016.  Although this will somewhat lag the global average, it is a significant improvement over the 2006-2011 pace.  Growth will be driven by a rebound in construction, and faster growth in GDP and consumer incomes.  Advances will also be aided by growth in penetration for security equipment in Mexico, the least developed market for these products in the region.  Gains in Western Europe and Japan will be more modest.  While these markets will also experience growth resulting from improving economies and concerns about crime, their relative maturity will constrain increases.

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.