Study: U.S. demand for electronic security to hit $15.5B by 2010
May 16, 2006 -- The study sees the growth being spurred by a high perceived risk of crime coupled with a belief that public safety officials are overburdened.
A study from The Freedonia Group (www.freedoniagroup.com) forecasts that the U.S. market for electronic security products and systems will advance 6.9 percent per year to $15.5 billion in 2010.
The study sees the growth being spurred by a high perceived risk of crime - from conventional violent and property crimes to white collar crimes and terrorism - and by a generally held belief that public safety officials are overburdened. The group says that market advances will also be driven by a "sustained preoccupation with security matters" following the terrorist attacks of September 11, 2001.
The study notes that a rise in technology developments for enhancing the accuracy, ease of use, and speed of operation of security systems will also bolster spending, particularly on upgrades of existing security systems. The study also finds that a fall in prices for many high-end electronic security components has enabled security products to achieve greater market penetration.
Access controls are expected to post the strongest growth through 2010, due to innovations in technologies that allow such systems to employ an increasingly sophisticated array of clearance options, and because these systems can effectively replace people as guards. According to the study, advances in this product group will be led by biometric access controls, which are forecasted to grow more than tenfold over the next decade, reaching $3.6 billion in 2015.
The study maintains that most markets for electronic security systems will register healthy growth. Above average gains are expected in the industrial, offices and lodging, financial institutions, and services sectors, due to a combination of cyclical factors and concerns over the adequacy of security safeguards. The study further notes that in 2005, the trade and distribution market accounted for the largest share of electronic security system sales outside of the consumer market, with 15 percent. However, the industrial market, with 13 percent of total sales in 2005, is expected to surpass trade and distribution by a small margin to become the largest non-consumer market for electronic security products by 2010.
The "Electronic Security" study is priced at $4,400. More information is available at the group's Web site.