The Security Industry Association (SIA), as part of its commitment to delivering actionable data on the industry recently produced a one-of-a-kind look at the non-residential electronic security market in the U.S. The U.S. Security Market Report and Economic Impact Study identifies security market opportunities and end-user buying preferences, while providing detailed data on the size and economic impact of the electronic security industry in the country.
In crafting the report, SIA used construction specification data to get an unbiased and statistically reliable look at the security market. A detailed analysis of security products specified in new and renovation construction projects across the U.S. over two years provides a snapshot of where, geographically and by market segment, those products are utilized. This analysis of product penetration discloses where and in which market segments there is the most demand. Revealing these market opportunities gives users of the report an advantage in tough economic times.
New technology drives purchasing
Interviews and survey results deliver data on end-user planning, budgeting and buying processes for security products and services. The report reveals that end-users expect to get the most dependable market information from their suppliers and indicates when in the security planning process providers should begin to market to end-users. Survey results note that rapid advances in technology and government directives are driving purchasing decisions, especially in replacing legacy systems. In addition, survey results provide a statistically significant evaluation of the aftermarket for security. Adding the aftermarket calculations to the value of products specified in new and renovation construction provides a reliable estimate of the total size of the electronic physical security (EPS) market in the U.S. for the products covered in the report. SIA believes that this estimate reliably defines, without bias, at least 90 percent of the total market for all electronic security product sales in the U.S.
Market data provided by the U.S. Security Market Report is further analyzed and matched with U.S. government data from the Bureau of Economic Analysis to estimate the value of the industry along the distribution chain and calculate job creation. These data provide a valuable tool in high-level business strategies including mergers, acquisitions and financing or funding proposals.
The study also delivers a 10-year economic forecast for the U.S. as a whole and the EPS market, in particular, that takes into account the events of autumn 2008. On a positive note, the forecast sees the EPS industry holding its own, albeit with lackluster growth during the next few years. Rapid development of video technology coupled with the demands of the government, such as the requirements of HSPD-12, provide momentum unseen in other industries. This momentum will help the electronic security industry weather the financial storm that is foreseen for the rest of the economy.
The U.S. Security Market Report , while by design a snapshot of a certain sector of the market, is the most comprehensive analysis of the nation's security industry available today. We believe that the information this report delivers will be an invaluable component in benchmarking and building a successful strategic business plan for the next several years.
Richard Chace is chief executive officer of the Security Industry Association, Alexandria, Va.
For more information on the U.S. Security Market Report, contact Jerry Mazzuchi, SIA's managing director of sales, at (703) 647 8497 or firstname.lastname@example.org.