Market size and forecast
The global “Commercial Security Market” will stretch out from 84 billion USD in 2018 to 167 billion USD in 2025. The terrorist threat, illegal activities, fraudulent activities, tension between countries, growing use of the internet, advancement in smartphone technology and government policies are some of the reasons for the rising demand for electronic security systems. Electronic security systems offer several advantages such as maintaining records for information, monitoring activities in residential and public areas, and helping governments against terrorism and external threats. They have a significant role to play in military and defence systems of a country. The video surveillance security systems market segment is expected to be the fastest-growing segment. These surveillance systems are cost-effective and help in cracking down criminal activities. Also, video surveillance security systems help in various other applications such as facial recognition in border control management, traffic management, crowd monitoring, etc. CCTV cameras with built-in programmable corrections, built-in image processing, auto-exposure, and programmable exposure with precision are a few widely adopted security applications in the military and defence segment. In addition, law enforcement sites such as lock-ups, prisons, and correctional facilities, among others, require a high level of security to prevent criminal activities. Ameristar Perimeter Security, FutureNet Security Solutions, Anixter International, TPPG The Perimeter Protection Group AB, Tyco International Plc, Honeywell International, ZABAG Security Engineering GmbH, FLIR Systems, Southwest Microwave, Axis Communications AB, RBtec Perimeter Security Systems and Senstar Corporation are some of the prominent players dominating the commercial security market.
The growth strategy of the key players
The key players focus on inorganic growth strategies to maintain their position. For instance, in 2016, Senstar acquired Aimetis, a Canada-based company that specialized in advanced video analytics software. Additionally, the company formed a dedicated team of financial and human resources to continue its organic development. Johnson Controls merged with Tyco, all businesses of Tyco and Johnson Controls come under Tyco International plc, renamed as Johnson Controls International plc. The merger was completed on September 9, 2016. In April 2016, Global giant Hikvision acquired Pyronix for an undisclosed amount. In June 2014, Canon acquired Denmark-based Milestone Systems A/S, a world-leading provider of open platform Video Management Software (VMS).
The UK security surveillance market
As the sector security covers a variety of market segments from locking systems, CCTV, security fencing, security doors, intruder alarms and access technology, the UK security market was worth over £2.35bn in 2017 and is expected to grow at 12% per year. Over 2,000 companies specialise in the design, manufacture and supply of security equipment in the UK, and the British security industry employs around 600,000 people. There are an estimated 4.25 million CCTV cameras installed (2017) in the UK.
The CCTV segment accounts for the majority of the market value, with a 52% share. The video surveillance sector has seen the greatest levels of innovation and new product development. The competition from Chinese manufacturers has bought a significant reduction in the resale price. The shift from analogue to digital has created new opportunities for companies to acquire medium and large scale projects. In the access control sector, product development and new technologies have been a key driver of growth of this segment, particularly in commercial offices and housebuilding. Electronic access control plays a huge role. In addition, access control products have not been subject to the price deflation experienced in other sectors, thereby enabling relatively consistent value growth. Paxton, ACT, Comelit, TDSI, Fermax are some of the main players in this segment. The intruder alarm market segment is at a high level of competition in relation to other security products. The long replacement cycle has played a huge role in this trend, in particular, the non-residential sector is not attracted to new advancements in the technology and is very price sensitive. However, in the residential sector, growth has remained positive in line with increased housebuilding and technology development like home automation and growth of voice recognition technology. The main key players are Honeywell, Texecom, Pyronix, Risco, Scantronic, Bosch, etc.
Brexit and the security surveillance market
The overall prospects for the electronic security sector are reasonably good. The advancements in home automation, broadband speed, wireless technology and increasing new residential developments are some of the factors fuelling the growth of this industry.
The speculation about Brexit has caused some slowdown in new developments, and this has caused some uncertainty, however, the historical data and the strong resilient British economy is driving the growth up in the long term, which brings opportunities for manufacturers and installers of electronic security equipment.
Despite all the arguments, the UK security surveillance industry remains one of the most robust growth sectors, full of opportunities for manufacturers, installers, distributors, developers, etc.