The return of business optimism and the increase in the number of orders for products and services was a chance that companies did not miss in 2021. This opportunity was mostly reflected in the increase of online sales, the creation of new or redesigned products and services, new business models, and more comprehensive digital marketing.
This free report by
a&s Adria covers the latest Adriatic security market analysis and updates.
The ongoing anticipation and predictions of an imminent reduction in the infection rates marked the second part of the annual pandemic “trilogy”. Residents of the region spent 2021 in uncertainty, but with more optimism than a year before. They were torn between hoping that vaccination will prevent or slow the spread of the virus and lead to the lifting of measures and economic recovery and the recurring pandemic waves that pulled everything back to reality as the previously relaxed restrictions were tightened again. Although they have not yet reached the levels from 2019, markets are recovering, companies are working, production has continued, people are now moving and traveling more, and some business events are being organized with caution. Unlike many European countries in which restrictive measures are still in force, our countries have been much more relaxed in this regard. This surprised many international visitors at the Adria Security Summit in Belgrade in October 2021, who, we were told, expected to get the same treatment as in the countries they arrived from.
Salvation through innovation
The return of business optimism and the increase in the number of orders for products and services was an opportunity that local companies did not miss. This opportunity was mostly reflected in the increase of online sales, creation of new or repackaged products and services, new business models, and more focus on digital marketing. Education has moved to the virtual space, and the customers are now reached through the screens. Salvation was sought in innovation. The security market has quickly adapted to this trend, so many of the companies we interviewed in 2021 and 2020 claim to have resorted to online-focused sales and marketing tactics and new services. True, there are no new projects to the same extent as in the pre-pandemic years, but, according to regional players, the public sector continues to invest in infrastructure, which encourages allocations for security systems.
But just as things started to get better, a new blow came - a global shortage of electronic components, problems with the transport and shipping of goods, and rising energy and raw material prices. We wrote about this topic in the last issue in which some of the largest regional distributors unanimously confirmed the ongoing issues with suppliers of equipment and components from Asia while the situation is somewhat better with Western manufacturers. Still, they are dependent on some if not on the majority of components sourced from the east. In this issue, the CEO of Teletek told us that the prices of components for their fire alarm and burglar alarm devices increased by as much as twenty percent. Thus, they were forced to redesign products because they simply could not procure some parts. According to market analysts, this situation will continue for at least another year or two.
To find out what the situation is like at the source i.e. in the “forges” in which the security equipment is manufactured, we interviewed eight representatives of some of the world's largest companies. We asked them if they had difficulties in production and transport and if they were forced to increase the prices of their products, together with many other questions whose answers will surely interest distributors, installers, and buyers of their equipment. We will also look at the economic trends, which are a reflection of the current situation in the regional countries that consequently impacts the security market.
Key topics covered in the Adriatic Security Market Report 2021
- Regional market economic indicators, updates and estimates for 2022
- Strong recovery in Montengro
- Kosovo above the regional average
- High growth of Croatian GDP
- Economic recovery as a precondition for the growth of the security market
- Investments to strengthen self-confidence
- One of the record years
- Openness and flexibility
- Croatia and Serbia are leaders
- Uneven investments in the public and private sectors
- Turning challenging times into opportunities: Avigilon, Hikvision, Uniview and Suprema shares how they're doing this
- Digital marketing
- A strong base of partners and distributors
- Component shortage and pricing issues: solutions?
- The solution is to increase inventory
- Caring for partners
- Technological trends
- AI in Focus
- Use of security systems for other purposes
- Converged cloud security solution
- Recording in low light conditions
- Contactless technologies
- Advanced fire alarm systems
Featuring security industry insights from:
- Andrej Čuraković, Sales Manager for Video Surveillance and Access Control, Balkans and Middle Europe, Avigilon
- Danijel Jerković, Business Development and Project Sales Manager, Adriatic Region, Bosch
- Ognjen Ristić, Business Development Manager, Bosnia and Herzegovina, Dahua Technology
- John Chen, General Manager, Hikvision Adriatic
- Rainer Lichtenecker, Regional Sales Leader, Fire & Security, Honeywell Building Technologies
- Borislava Kenarova, Regional Sales Manager, Eastern Europe, Milestone Systems
- Artem Arifov, Business Manager, Suprema Europe
- Tsing Tang, Director of Eastern Europe, Uniview Technologies