The South and Southeast Asian security market has witnessed strong growth in 2015 as rapid urbanization, growth of middle class, industrialization, penetration of mobile internet applications, and increased investments in infrastructure fueled market demand. Speaking to a&s Asia, Harish Vellat, GM in Asia Pacific
The South and Southeast Asian security market has witnessed strong growth in 2015 as rapid urbanization, growth of middle class, industrialization, penetration of mobile internet applications, and increased investments in infrastructure fueled market demand.
Speaking to a&s Asia, Harish Vellat, GM in Asia Pacific at Honeywell Fire and Security, said that these trends are expected to have a prolonged impact in the region as the market grows.
“Cities are getting larger and more populated. People increasingly desire more connectivity through mobile devices,” Vellat said. “Industrialization means more factories, and those factories need security and access control, as do critical infrastructure like airports and seaports.”
His comments are in line with market research reports, which expect Asia to be the major driving force behind global physical security market growth.
According to Transparency Market Research, the Asia Pacific physical security market is projected to see growth at a CAGR of 17 percent from 2013 to 2019. A report from Micro Market Monitor said the region's perimeter security market would expand at a CAGR of 11.3 percent from 2014 to 2019.
At a regional level, countries like Indonesia and Vietnam have all recorded good growth. But certain markets have shown difficulty due to several reasons. Malaysia, for instance, has been hurt by currency depreciation and weak oil prices. The latter has also negatively impacted Thailand. Slowdown in China's economy has also had its strain felt across Southeast Asia.
“Despite this, in all major SEA countries, we've seen good growth in one or more market segments as investment flows into other areas,” Vellat said. “In Malaysia, for example, the residential sector continues to be robust. So manufacturers must find suitable offerings in new niches that can drive growth.”
He added that Honeywell is well positioned to do that because we have a broad portfolio of products that meet customers' needs across key market segments. They are also looking at opportunities to simplify operations through integration of complementary solutions, such as fire, public address and security solutions.