Cleveland 6/3/2008 9:16:46 PM
News / Business

Freedonia Market Research Analyzes

World demand for security equipment is projected to climb 7.8 percent annually through 2012 to over $90 billion.  The strongest market gains will be registered in developing parts of Asia, Eastern Europe, Africa and the Middle East, and Latin America.  Security markets in these areas are, for the most part, underdeveloped, and product demand will be fueled by generally strong economic environments, new business formation and foreign investment activity, increased urbanization (contributing to social tensions and criminal activity), and growing middle and upper class populations.  China, India, Russia and Brazil are forecast to record some of the most robust sales increases.  By 2012, China will surpass Japan to become the second largest security equipment market in the world behind the US.  Growth is also expected to be strong in lower-volume markets such as Turkey, Indonesia and Israel. These and other trends, including market share and company profiles, are presented in World Security Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

 

Electronic security products will post much stronger sales advances than mechanical security equipment through 2012.  New generations of electronic security products have much greater capabilities than mechanical devices, and market gains will be driven by further improvements in system designs.  In addition, prices of many electronic security devices are falling, making them more affordable to building owners looking to upgrade from conventional mechanical locks.  Demand for access controls will grow the fastest, followed by closed-circuit television surveillance equipment, miscellaneous electronic security products like contraband detection and electronic article surveillance systems, and alarms.  However, sales of locks and other mechanical security goods will climb as well, bolstered by generally healthy economic climates in developing parts of the world. 

 

The commercial and industrial security equipment market is by far the largest.  Future commercial/industrial market advances will be spurred by rising business activity -- and associated security requirements -- as the world economy continues to grow.  Government/institutional market gains will be fueled by the heightened level of security consciousness that prevails in the post 9/11 era, with government agencies playing the lead role in providing for the security of the public at large.  However, the strongest growth will be recorded in the residential security market, stimulated by a high perceived risk of crime among residents in many areas and supported by the increasingly affordable nature of many types of electronic security equipment, although mechanical products (principally locks) will continue to account for the largest share of demand.

 

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.