IMF projections for the rate of GDP growth across advanced countries in 2012 is 1.4% whilst the world market for physical security systems grew by 6% a multiple of approximately 4.3. Even allowing for much higher rates of growth in emerging and developed economies this is much more than a worthy performance particularly for a mature industry.
It also masks the fact that video surveillance achieved 11.8%, double the rate of aggregate growth for the industry and access control 7.2%. Variation in performance across subsectors is even wider with IP Video Surveillance topping the performance charts at around 30%. How this was made possible is one of the main themes in our 4th Edition of “The Physical Security Market 2012” – http://memoori.com/physical-security-2012
Why Structural Changes have Increased Demand
The main reason that it has been able to prosper during the worst trading conditions for decades is that the structure of the business has morphed not just to compensate but to meet and beat the challenge.
Our 2012 Annual Report shows that both the middle strata and small companies have both increased the size of the market and their share. The minnows are taking on the sharks and winning, both through the development of leading edge products and growth through acquisition and alliances. But the main driver is that they are delivering products and systems that are transforming the security industry from a cost centre to a cash generator.
The business has also benefitted from IT & Communications and Defense companies continued foray into the security industry leveraging their expertise in digital technology and making serious inroads into homeland security and transport markets.
The second structural change that has contributed to getting more from seemingly less is that the routes to market have changed with system integrators now taking some 50% of all product sales Manufacturers are now partnering with system integrators to develop solutions that work across different vertical markets that add value not just for improving security but to increase operating efficiencies… To read the whole article, subscribe today or use our retail finder to purchase a copy from your closest store.
