Global growth rate is predicted to settle at around 3 percent in 2013, similar to 2012. According to the recent prepared announcement from IMF website, “This is less than [the] forecast in the April 2013 World Economic Outlook (WEO), driven to a large extent by appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as a more protracted recession in the euro area.”
Global growth rate is predicted to settle at around 3 percent in 2013, similar to 2012. According to the recent prepared announcement from IMF website, “This is less than [the] forecast in the April 2013 World Economic Outlook (WEO), driven to a large extent by appreciably weaker domestic demand and slower growth in several key emerging market economies, as well as a more protracted recession in the euro area.”
The report from IMF also highlighted the US Federal Reserve plans to withdraw the fourth round of quantitative easing (QE4) monetary policy stimulus, which might cause “the possibility of a longer growth slowdown in emerging market economies, especially given risks of lower potential growth, slowing credit, and possibly tighter financial conditions.” The future growth of some developing countries appears to be even dimmer, due to the recent unstable political and socioeconomic situation in Brazil, Turkey, and Egypt.
In the security industry, multinationals originally depended on these emerging economies to support their growing force, but that doesn't seem very practical now. Not-so-positive future forecasts for the second half of 2013 and 2014 for the security mass market can be predicted, following the January to June 2013 financial reports of many multinationals.
To fight against such moderate growth, it could be assumed that most of the multinationals would further expand to new and niche markets. Samsung Techwin Europe's and Panasonic Europe's partnerships and acquisitions of VsaaS companies are good examples. Genetec has simplified pay-by-plate systems integration in the parking solution industry. Leading companies, such as Nice and Verint, take a “total solution” approach to maintain their profits. Other promising opportunities might rise from the technologies derived from big data, convergence of physical & cyber security, and PSIM.
The companies who are strong in the SMB sector and products sales business will experience fiercer competition from Chinese companies due to their rapidly improving quality and very “competitive” prices.