This is the especially the case in Western Europe and North America due to branch closures and consolidation of headquarters.
Although large and medium sized projects are expected to be put on hold, analysts Frost & Sullivan say “solution providers will remain buoyant due to banks’ need to protect their valuable assets from both physical and IT attacks”.
According to the company’s latest report, the global market for electronic physical security in banking and finance earned revenues of $936 million in 2007.
“The critical need for security in banks will help in some way to sustain the spending for physical electronic security, however the growth rates in 2008 and 2009 are expected to be at least two per cent less than the peak in 2007,” said Matia Grossi, industry analyst for Frost & Sullivan Electronics & Security group.
Since the electronic physical security market in the banking and financial institutions sector is “very mature”, it is sensitive to the shrinking of the installed base of bank retail branches and financial institutions, say the analysts.
The huge installed support of analogue security equipment also makes banks reluctant to make the transition to IP technology.
At the same time “green field” deployments, where latest technologies and systems are usually installed, are expected to be put on hold because new branches are unlikely to be opened.
Said Grossi: “Greater customer awareness about the advantages and new functionalities of IP-based systems drives banks to maintain their current level of spending in electronic physical security, even in the present difficult times”.
Regulations and insurance requirements also compel banks to sustain a required level of physical electronic security.
“Once the situation will be normalized, banks are expected to increase their spending once again. By 2013 the worldwide spending for electronics physical security is expected to reach $1,463 million,” said Grossi.
