World Security Equipment Demand to Reach $100 Billion in 2014

World demand for security equipment is projected to climb 7.4 percent annually through 2014 to nearly $100 billion.  In general, the strongest market gains will be posted in developing parts of Asia, Eastern Europe, Africa and the Middle East where security markets are relatively underdeveloped.  In these regions, product demand will be fueled by generally strong economic environments, new business formation, foreign investment activity, increased urbanization, growing middle and upper class populations, and increasing perceived risk of criminal activity.  In 2009, electronic security products accounted for more than 60 percent of total security equipment demand.  Sales of locks and other mechanical security goods will increase as well, bolstered by improving economic climates in developing parts of the world where these products have not yet reached market maturity. The commercial and industrial security equipment market is by far the largest, with nearly 65 percent of sales in 2009.  These and other trends, including market share and product segmentation, are presented in World Security Equipment, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.

While most of these countries are still growing from a small base, China’s gains stem from a larger base as it surpassed Japan to become the world’s second largest security equipment market in 2009.  China, India, Russia and Turkey are each projected to register double-digit growth through 2014. 

North America is also expected to see total gains well above the global average through 2014.  Advances will be driven by rapid growth in the US where security equipment spending will benefit from a strong cyclical rebound in construction and capital investment spending from a low 2009 base.  Gains in Western Europe and Japan will be more modest.  While these markets will also experience growth resulting from improving economic conditions, rising business and personal incomes, and ongoing concerns about crime, the relative maturity of most security equipment markets in developed areas will constrain future increases in 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.