The International Monetary Fund has cut global growth forecasts twice since April 2012. Despite widespread economic woes, security is keeping its momentum in certain regions, with APAC being particularly noteworthy given its game-changing population, rich natural resources and urgent needs for both public and private infrastructures.
The International Monetary Fund has cut global growth forecasts twice since April 2012. Despite widespread economic woes, security is keeping its momentum in certain regions, with APAC being particularly noteworthy given its game-changing population, rich natural resources and urgent needs for both public and private infrastructures.
The total size of the world's security equipment market at factory gate prices in 2012 was US$20.6 billion, according to Memoori Business Intelligence. Video surveillance products accounted for 49 percent at $10 billion, of which Asia dominated with roughly 48 percent of the market share. According to several research bodies, APAC is the fastest growing market for surveillance- and security-related equipment. In addition, the APAC biometrics market is forecasted to grow at a CAGR of 12.5 percent, to reach $900 million by 2016. “The developed markets of North America and Europe are losing market share to Asia — particularly China, which will become the largest single market before the end of this decade,” said in a Memoori report.
The Place to Be
The large number of emerging economies in the APAC region is contributing significantly to the growth of the security industry, through numerous infrastructure and construction projects from both the government and private sectors. “Even if we expect slower growth in 2013, there will still be sustainable and substantial business activities that will drive the need for security systems across almost all industries in Asia,” said Patrick Lim, Director of Sales and Marketing for Ademco Security Group.
In 2013, key verticals set for growth vary within the region, and range from government to private banking. “Vertical growth can be different within the region, but key APAC verticals are banking, finance, retail and transportation. In addition, logistics will continue to see growth in 2013,” said Alan Parker, Director of Global Accounts and Vertical Markets for Asia, Tyco International.
For some countries, demand is driven by government initiatives, while other countries are experiencing a surge in private investment activities. “Government expenditure is a significant driver across Asia, especially in China, Malaysia and Singapore. In the Philippines, we see very strong business activities, especially in hospitality and media services; and in Indonesia, it is the technology services sector,” Lim said.
Affordable Cloud
Tyco sees potential in cloud computing. “A 2011 IMS Research report estimated that nearly 65 percent of the DVRs sold were Ethernet-enabled, demonstrating the potential market for video to be distributed to the cloud and used for nonsecurity purposes," Parker said.
The APAC cloud services market will grow at the fastest rate among all the regions, and this growth will be driven by the rapid uptake in the SMB segment, according to Saurabh Sharma, Senior Analyst for Market Intelligence.