Report: Global demand for security tech to reach $126B in 2018

March 30, 2015
India, China expected to post the fastest individual market gains

According to a new report from The Freedonia Group, world demand for security equipment is expected to increase by 6.8 percent annually eventually reaching $126 billion in 2018.

In a statement, the research firm said that the fastest gains will come from parts of Asia, Central and South America, as well as Africa and the Middle East. With an improved economic outlook and rebound in building construction, there will also be significant market opportunities in the U.S. and Western Europe.

"Technological innovations and the integration of security equipment with smartphones and other electronic devices, as well as with lighting, heating, and other building systems, will aid sales of security equipment," the research firm wrote in the statement regarding its’ recently released "World Security Equipment" study.   

Additionally, the study found that electronic security products accounted for over two-thirds of the total global security equipment demand in 2013, which are also expected to post faster sales growth than mechanical security equipment through 2018. The research firm said that advances will be driven by rising penetration in developing markets as well as by improvements in system capabilities, which will spur initial adoptions and upgrades to existing systems.

Among individual national markets, market analysts expect to see the fastest gains in India and China, both of which will generate double-digit annual growth through 2018. 

"Mexico, South Africa, and Turkey will all post annual gains of at least eight percent," said David Petina, an analyst for The Freedonia Group.

Despite rapid gains over much of the past decade, the use of many types of security equipment in these countries remains low compared to more mature markets.  This is true even in China, which was the largest market for security equipment in 2013, with nearly one-fifth of global sales. 

Although lagging the gains of these developing markets, North America and Western Europe are forecast to see significant improvements in security equipment sales.  Growth will be driven by a projected recovery in the U.S. market, benefiting from a rebound in construction, product innovations, and improvement in GDP and consumer income trends.  While gains in Western Europe will not rise as quickly, they too represent continued acceleration following a period of extended economic weakness.  The market in Western Europe will benefit from improving economies and interest in upgrading installed security equipment, but will be constrained by its relative maturity.