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Stringent Insurance Requirements and Technological Developments to Boost Demand for Security Products in Industrial and Commercial Sectors

Posted on: Thursday, 27 April 2006, 06:00 CDT

LONDON, April 27 /PRNewswire/ -- The electronic fire and security product markets in Europe are exhibiting growth as manufacturers are diversifying into the industrial and commercial (I&C) security service sector to sustain declining profits. Meanwhile, the overall market remains dominated by the intrusion detection and fire detection equipment segments, with stringent insurance requirements and technological advances fuelling the uptake of electronic security equipment.

Frost & Sullivan (http://www.buildingtechnologies.frost.com/) finds that the European Fire and Security Product and Systems Markets earned revenues of US$5.10 billion in 2004 and estimates this to reach US$6.00 billion in 2011.

"At present, the closed circuit television (CCTV) equipment segment offers the most lucrative revenue potential, while the fire and intrusion detection equipment markets, although large, are growing saturated," notes Frost & Sullivan Research Analyst, Mr. Nick Houldsworth.

As large security providers are increasingly pursuing the sale of security packages covering numerous applications, demand for integrated security products is expected to rise. In particular, CCTV equipment will enjoy enhanced importance as verification devices to complement other existing security products.

Despite these trends, the access control market is expected to experience growing threat from digitally controlled, 'intelligent' CCTV systems that are likely to incorporate biometric features in future.

"The development of the access control systems market will rely on the accelerated acceptance of biometric technology," remarks Mr. Houldsworth "However, market growth is expected in this segment also, as it possesses the potential to capitalise on the European Time and Attendance Directive."

The fire detection equipment market is witnessing consistent demand due to comprehensive legislative requirements, rigorous implementation of existing standards and the growing need for integrated fire and security systems. Further, as insurance companies mandate the use of fire detection in commercial properties, the market is likely to exhibit continued demand. Quality improvements such as voice command notification and enhancement in reliability, which results in fewer false alarms, are factors leading to better market performance.

Insurance requirements are also resulting in rising demand for intrusion detection equipment. The growing requirements for networked, Internet protocol (IP)-compatible equipment will result in the upgrade of existing intrusion detection products. In addition, with the saturation of commercial and industrial sectors, the untapped residential sector will offer tremendous growth opportunities.

Recent terrorist attacks across Europe are contributing to the need for access control. Prevention of illegal entry and control of employee movement are the key access control requirements for non-residential sectors that entail the need for an essential defence method. Due to the need for improved security, smart card systems and optical card technology will enjoy enhanced importance.

The CCTV market, currently, the fastest growing segment, is anticipated to experience significant demand fuelled by the continued expansion of the installed base of systems as well as the ongoing technological developments. Access control and public surveillance systems that negate the need for manned screen monitoring, while also reducing the incidence of false alarms, will be widely used to provide real-time, live visual identification.

In the context of intensifying competition, the market is witnessing spiralling pressure from cheaper overseas products. To sustain their profits, manufacturers will need to target service contracts to enhance their main source of profits.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the latest analysis of the European Industrial and Commercial Security Product and Systems Markets, send an e-mail to Magdalena Oberland, Corporate Communications, at magdalena.oberland@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information through email upon receipt of the above information.

European Industrial and Commercial Security Product and Systems Markets is part of the Building Technologies Subscription, which also includes research in the following markets: intrusion detection, fire detection, access control and CCTV equipment. It provides an analysis of the current market trends and their impact on these segments. All research included in subscriptions provide detailed market opportunities and industry trends. All research is evaluated following extensive interviews with market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics. For more information, visit http://www.frost.com/.

European Industrial and Commercial Security Product and Systems Markets B818-19 http://www.frost.com/

List of keywords in this press release: European industrial and commercial security, industrial and commercial, I&C, electronic security equipment, fire detection, intrusion detection, access control, closed circuit television, CCTV, biometric technology, European Time and Attendance Directive, Internet protocol, IP, voice command notification, smart card systems, optical card technology, public surveillance systems

Contact: Magdalena Oberland Corporate Communications - Europe P: +44-207-915-7876 E: magdalena.oberland@frost.com Trisha Bradley Corporate Communications - Americas P: +1-210-247-3870 E: trisha.bradley@frost.com Donna Jeremiah Corporate Communications - Asia Pacific P: +603-6304-5832 E: djeremiah@frost.com Surbhi Dedhia Corporate Communications - India P: +91-22-2832-4705 Ext: 131 E: sdedhia@frost.com Sharmin Jassal Corporate Communications - Australia P: +61-2-8247-8900 E: sjassal@frost.com

Frost & Sullivan

CONTACT: Trisha Bradley, Corporate Communications - Americas, P:+1-210-247-3870, E: trisha.bradley@frost.com

Source: PRNewswire

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