A new report from market research firm Frost & Sullivan (www.frost.com) points to slow but steady growth in the European electronic fire and security markets. The report, European Fire and Security Product and Systems Market, indicates that security and fire companies saw revenues of approximately $5.1 billion (US funds) in 2004 and anticipates that number to increase to $6 billion by the year 2011.
According to Frost & Sullivan's research analyst Nick Houldsworth, the most lucrative part of the business is in CCTV. Houldsworth did not have as much promise for fire and intrusion detection. "The fire and intrusion detection equipment markets, although large, are growing saturated."
The research also pointed to new, stringent insurance requirements and new technology as the key factors driving purchase of electronic security equipment.
The report also examined how integrated systems are relying on CCTV more and more, with the access control market as being possibly threatened by the intelligent video systems that are using CCTV systems as verification and authentication devices and the likely integration between video surveillance and biometrics.
Nonetheless, the report didn't write access control systems off altogether.
"The development of the access control systems market will rely on the accelerated acceptance of biometric technology," said Houldsworth, in announcing the results of the market study. "However, market growth is expected in this segment also, as it possesses the potential to capitalise on the European Time and Attendance Directive."
Finally, the report noted that "cheaper overseas products" are intensifying competition. "To sustain their profits, manufacturers will need to target service contracts to enhance their main source of profits," wrote Frost & Sullivan researchers in a press release about the new report.