Asia currently accounts for 60 percent of the global population and by 2025, the majority of this population is expected to live in urban areas. The rising urbanization and its attendant evils of social and institutional crime have had people install sophisticated safety systems to ensure personal and household safety.
New analysis from Frost & Sullivan, “Asia Pacific Residential Security Markets”, finds that the escalating incidence of crimes ranging from break-ins to contact crimes has intensified the need for security systems and services to ensure the safety of homes and properties.
Although there have not been many technological breakthroughs in the mature residential security market, customers have shown a willingness to adopt novel systems, as they are more difficult to bypass.
While guards are still the most popular form of residential security due to their low costs, consumers have started tilting toward access control systems such as keypads and contactless smart cards, network cameras, building control systems and sensors. New alarm systems that use wireless communications to network with door and other sensors are gaining popularity, while technology convergence with IP systems is creating a shift in the market and business models.
“Biometrics is still in the moderate growth stage but holds the highest potential for growth,” said Parul Oswal, Industry Analyst, Frost & Sullivan. “With the development of new software, smaller form factors and integration with other technologies such as smart cards and IP technology, biometrics is expected to show tremendous growth in terms of revenue too.”
The market will also get a boost with the resumption of construction activities that were deferred in 2008 to 2009 due to the lack of capital. The booming residential construction market in Singapore, Hong Kong and China bodes well for the residential security systems market.
In Singapore, due to the strong demand for private housing, the Ministry of National Development (MND) is likely to place 18 sites on the ‘confirmed list' in the second half of the 2010 Government Land Sales (GLS) Program. In Hong Kong, the luxury residential market is expected to increase in capital value while the residential property market in China is one of the biggest in Asia in terms of volume.
Despite this vast market, the revenue growth is not likely to be exponential as most end users are deterred by the high initial costs of acquiring a security system and the subscription costs of maintenance and monitoring; the recent decline in the cost of equipment and services notwithstanding.
“Large building management systems need to provide a one-stop solution,” Oswal said. “Security system integrators and manufacturers need to bridge the gap between security and IT, employ open standards, move away from proprietary solutions and adopt the best-of-breed technologies.”
Still, the economic growth in Asia has increased affordability among young professionals, who are demanding greater levels of security and safety which bodes well for the Asia Pacific Residential Security market.