This Report is the NEW 2014 Definitive Resource for Access Control, Intruder Alarms & Video Surveillance Market Research & Investment Analysis.
The game changer in the Physical Security Industry is still IP driven not just across Video Surveillance but now into Access Control and Intruder Alarms. The Physical Security industry is moving fast to an all IP driven business, which has vastly improved and extended the value propositions for its customers. Security companies that are demonstrating how improved ROI can be achieved through making businesses operate more efficiently are growing fast and profitably. The Internet of Things (IoT) is now at the top of the Hype Curve and it will take at least 5 years before it reaches the slope of enlightenment. When it does, analogue security systems will suffer a rapid decline.
From our detailed analysis of the structure of the Industry, it is clear that the products market is being led by a small group of leading edge companies that are relatively new starts in the business. They have taken the opportunity to use disruptive technology to produce products that can deliver on customers requirements. By contrast the major conglomerates share of the product market has declined and they have failed to correct this through their normal process of growth through acquisition. Are major conglomerates losing interest in the security business? Most have made major acquisitions in their other businesses and they have significant cash reserves on their balance sheets.
A major change in the geographic distribution of sales is taking place with Asia delivering the highest rate of growth and increasing its market share. This will continue because there is still a massive latent demand waiting to be exploited. In China penetration is only one third of the size of North America. However the leading edge manufacturers of the west are failing to get their share of this business, which is dominated by Chinese manufacturers. 2 of the world's largest manufacturers of Video Surveillance products are now Chinese and they have within the last 2 years established a significant presence in western markets.