Taken together, the largest security product markets in the UK and the Republic of Ireland are the intrusion and fire detection equipment markets. The fire detection equipment market in the UK and Ireland was valued at $316 million in 2004 with a growth rate of 4%. Growth is being fuelled mainly by the demand for replacements and upgrades.
The total intrusion detection equipment market is the largest in Europe with an approximate value of $305 million and a growth rate of 0.9%. The commercial and industrial market has reached saturation point with flat or declining growth rates expected to continue over the forecast period. This can be attributed to decreasing crime rates and relatively low spending by end users. Significant growth in the intrusion detection market will be largely dependant on exploitation of the residential market.
Access control drivers
In 2004 the market for access control equipment was worth $176.1 million. This has grown steadily since 2001 and growth is expected to continue, as a result of a buoyant economy and the receptiveness of the general public to new security equipment.
The increasing trend towards integrated security systems is fuelling the access control market, as open architecture enables access control systems to be integrated with other security systems. In addition, the European Directive on working time and conditions is favouring the installation of access control systems as they provide mechanisms for time and attendance monitoring.
The uptake of biometric-based access control systems has been slower than expected but it should boost the sector in the long term. In addition, the increasing power and reduction in the cost of microprocessors has improved verification times and unit costs. More powerful computers, and increasingly sophisticated algorithms, are leading to a new generation of access control technologies.
When it comes to CCTV, the UK has the most mature market in Europe, resulting from its experience of terrorist activity over the last 30 years. This has fuelled the presence of over 200 CCTV manufacturers including Vista, Dedicated Micros and Baxall. The prominent role of CCTV in recent terrorist investigations has certainly boosted the image of recording equipment as a tool for public surveillance.
In 2004, the market was valued at $415.5 million with a growth rate of 2.6%. It is expected that the evolution of IP network technology will fuel the growth of this market, as the transition to intelligent digital systems continues. The existing base of installed products is dominated by older analogue systems in contrast to less developed markets in other countries, which are only now installing video detection en-mass.
Installation steady, services up
The security installation market in 2004 was valued at approximately $369 million with a growth rate of 2.1%. It is closely aligned to overall economic expansion and growth of the construction sector. The market is dominated by large multinational companies that offer the full range of services, and a number of smaller companies operating at a local level. Most of these harness local distribution channels and national monitoring networks. Many of the small regional companies may be either specialists in the installation of certain types of equipment, or in some cases, may combine installation of fire and security products with other core activities, such as electrical contracting.
Finally, the UK services market was estimated to be worth $435.6 million in 2004 with a growth rate of 5.3%. Growth of this market should exceed growth of the respective product markets, mainly owing to the targeting of recurring monitoring revenue.
In summary, the UK experience is one of falling prices and increasing maturity. As a result, large competitors are targeting network-compatible services that can be operated on a single network, with an increasing capability to include diverse facility management and security functions through a single point of contact.
