The U.S. market for security products and systems is expected to grow to nearly $20 billion in 2016.
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According to a new report from the Freedonia Group, the U.S. market for security products and systems is expected to increase 6.3 percent annually to $19.9 billion in 2016. Rebounds in construction and capital investment spending are expected to be the primary growth drivers. A perceived high risk of crime and technological improvements to security technology will also play a role.
Among the different product categories, electronic access control systems and locks are expected to see the fastest gains, growing at 9 percent annually to $5.6 billion in 2016. The research firm said that increasing consumer interest in automating security functions and a shift away from manned security will drive demand for access control.
Although card-based access control products will still make up the majority of the access market, biometric solutions are expected to see the higher increase in demand, growing at nearly 15 percent annually to $1.7 billion in 2016.
In addition, every vertical market is expected to see solid increases in demand for security products including; consumer (6.3 percent); government and institutional (7.3 percent); industrial (5.1 percent); trade and distribution (4.7 percent); financial institutions (5.4 percent); air transport (6.7 percent); offices and lodging (7.9 percent); and, services (6.4 percent).
“All of these markets will benefit from especially strong rebounds in construction activity, which will bolster demand for basic security products such as mechanical locks and electronic access control systems,” the report states. “In addition, demand in all of these markets will be supported by increasing interest in more sophisticated security measures to help protect facilities and vehicles used in these settings.”