Report: Physical security business dominated by small group of companies

Dec. 6, 2013
Research and Markets has released its Physical Security Business 2013 to 2017 report.

Research and Markets (Dublin, Ireland) has announced the release of its report, The Physical Security Business 2013 to 2017. The report estimates the global market for physical security products was worth $23.4 billion in 2013. The analysis states that, "from a detailed analysis of the structure of the industry, it is clear that this market is being led by a small group of leading edge companies that are relatively new starts in the business."

"They have taken the opportunity to use disruptive technology to produce products that can deliver on customers requirements," commented a spokesperson for the researcher. "By contrast the major conglomerates share of the product market has declined and they have failed to correct this through their normal process of growth through acquisition. Are major conglomerates losing interest in the security business? Most have made major acquisitions in their other businesses and they have significant cash reserves on their balance sheets."

The report reveals that the market in China has forged ahead at the highest rates of growth recorded in the industry, and that this market's aggregate growth over the past 5 years has not slowed down. Despite the fact that its penetration has increased by almost 60% during this time, the researcher postulates that western leading edge IP companies have failed to assert themselves in what will become the biggest single market in the world. The study reviews the reasons behind this failure.

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The report targets 3 main product segments: access control, video surveillance (CCTV) and intruder alarms. Specific topics covered include the valuations and exit multiples paid for security companies, and a look at factors driving M&A and investment in the physical security industry. Readers of the report can expect to learn how the industry is reforming in order to develop new security products and systems which will satisfy the end users' need to reduce operating costs, moving security from the category of a cost center to one that delivers a return on investment.

"Continued growth should be built on the foundation that through disruptive IP technologies and innovative business models, we can move clients security operations from a cost center to a cash generator, whilst converging with other services in the business enterprise," said the spokesperson for Research & Markets.

Companies tracked by the report include Axis Communications; Tyco International; Honeywell; Siemens Building Technologies; Bosch; UTC; Assa Abloy; Safran; HIKVision; G4S; Kaba Group; Pelco By Schneider Electric; 3M; Johnson Controls; Ingersoll Rand; Stanley; Avigilon; Axsys; CSST; Dahua; Diebold; Gunnebo; Mobotix; Nedap; Nice Systems; Optex; Panasonic; Risco Group; Verint; Vivotek; Prism Skylabs; Xtralis; Tamron; Samsung; and Sanyo.

Learn more about the report.

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