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For security, 2016 ushers in another growth year across globe

For security, 2016 ushers in another growth year across globe
The overall security market grew in 2015. That rising trend is set to continue in 2016, in the midst of an expanding global economy and increased criminal activities and threats in different parts of the world.

The overall security market grew in 2015, with Memoori Business Intelligence estimating the total value of world production of physical security products at factory gate prices was US$27.3 billion, a growth of 7.6 percent from 2014. That rising trend is set to continue in 2016, in the midst of an expanding global economy and increased criminal activities and threats in different parts of the world. This year, growth is expected in all major markets, namely North America, Europe, and Asia Pacific, contributing to an overall security equipment sales increase that Memoori said will amount to 8 percent.

North America

Security spending in North America is likely to grow this year due to economic expansion and increased criminal and terrorist activities. The World Bank puts U.S.’s GDP growth this year at 2.8 percent, while tragedies like the shootings in San Bernardino in December 2015 are expected to further prompt organizations to enhance security. Canada is expected to see their security spending rise as well, although the country does not face the same magnitude of threats or risk as the United States. “Overall in North America, it is expected that the market will continue to grow with 5 percent or even more,” said Masaya Kida, Senior Manager at Optex.

Compared to other regions such as APAC, growth in North America will be more balanced between technology and operations – the training of human workers tasked with protecting people. “A lot of emphasis on these days is on enhancing the vigilance of human beings, and therefore some budgets will go towards preparedness programs and vigilance training,” said Ilya Umanskiy, Associate Managing Director at Kroll. “Meanwhile, it’s impossible to protect from various risks and threats by simple human force alone. So you have to deploy technology. The emphasis will be on video surveillance and screening technologies both at airports and large public venues.”


Europe’s economic growth this year is expected to be moderate, with the World Bank forecasting a 1.8 percent growth. Like North America, the continent is also at a vulnerable position to criminal activities. The terrorist attacks in Paris in November last year all but underscored the kind of threats that Europeans live with each day. With security budgets expected to remain tight in the midst of economic uncertainty, how to use them optimally becomes a key concern.

For the Middle East, an increase in security spending is expected as well. Countries such as the United Arab Emirates see a combination of growth factors, including higher demands for security, increased spending power, and a migration from analog systems to IP.

“The U.A.E. continues to be an area with significant development potential,” said Dan Drayton, Export Sales Manager at Paxton. “It’s a fast growing, highly entrepreneurial market. With a booming construction industry, the number of buildings that require access control is rising, creating a big opportunity for us.”


As for the Asia Pacific, the focus is on a deceleration of China’s growth, which the World Bank says will still be 7 percent this year. According to most security players, the impact of such deceleration to Asia’s security market will only be minimal.

“The Chinese government is still investing quite heavily in infrastructure, in public transit, in smart city,” Umanskiy said. “I think the major players are diverting their attention toward government projects, because the money is more secure on the government side.”

“China and its more than 1.3 billion population will continue to be an important growth market for the security industry,” said Dave Petratis, CEO of Allegion, adding that while China is decelerating, “Australia, New Zealand, and non-China regions in Asia Pacific will continue with modest improvement.”

For Japan, the retail sector will likely be a bright spot boosted by its strong tourism sector. Another focus will be on city surveillance and public transit to keep people safe. “Japan also has to look after their infrastructure and public transportation,” Umanskiy said. “They probably do not face threats that are as high as China or Southeast Asia; however they will be looking to spend money on city surveillance and so on.”

In for another growth year

The security market is set for another growth year in 2016. Increased investment and spending are expected in major market segments across the globe, namely North America, Europe, and APAC, due to economic expansion and a need to protect citizens against criminal activities and threats. Amid these trends, security will only see its role become more eminent in a world that greatly needs it.

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