Worldwide Business Information and Market Reports

Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk

This report covers: security systems, access control, Intruder Alarms, CCTV, closed circuit television, Cameras, Recorders, Monitors, distribution structure for security and fire alarm products, Contractors, Installers, fire protection, extinguishing systems, alarms, extinguishers, sprinkler systems, smoke detectors,

Companies covered include: ADT, Thorn Security, Williams Holdings, Menvier Swain, Shorrocks

Key Areas

Executive Summary

Table of Contents

Back to Electronics & Consumer Electronics Index and Shopping Cart

Back To REPORTFINDER home page and Search Engine

KEY AREAS

THE MARKET

• Historical background - development of the market through the 1990s, influencing factors, economic influences etc.
• Market size by volume and value - development from 1990-1999 in both security and fire systems, with forecasts up to 2003. Factors influencing future growth potential in domestic and non-domestic applications.
• General review of industry prospects into the new Millennium - external influences on the market.

SECURITY SYSTEMS

• Intruder Alarms - Market size - volume and value - historical volume trends from 1980-99, rapid growth in late 1980s and early to mid 1990s, maturing sector and future prospects.
• Factors influencing the market - crime rates, APCO policy, insurance companies, domestic & non-domestic construction, growth of DIY market, new technology. Long term market prospects and influencing factors.
• Household Ownership Levels - rapid growth in 1990s, reducing potential for first time installations.
• Domestic/Non-domestic market - volumes by sector, professional/DIY fitted alarms (share by volume), factors influencing each sector, potential for growth.
• CCTV - Market size - value for CCTV from 1990-1999. Rapid growth in recent years. Forecasts to 2003. Factors influencing the market - crime rates, success of town/city centre schemes, developments in retail security, potential within public sector. Limitations of manned guarding sector.
• Review of CCTV products - mix of Cameras, Recorders, Monitors etc, product development and trends.
• End Use Application areas - mix of sales into commercial, retail, industrial & public sectors, potential growth areas.
• Access Control -Market size - Value, development of market 1990-1997, rapid growth in recent years, with excellent prospects, forecasts to 2002.
• Review of access control system types - mix of sales, product trends, future developments.

FIRE PROTECTION/EXTINGUISHING SYSTEMS

• Market size by value 1990-99 - product analysis (alarms, extinguishers/sprinkler systems, smoke detectors) - market size by value, growth prospects to 2003.
• Factors Influencing Market Growth - media profile, recovery in non-domestic construction, changing regulations, slowing of growth of smoke detector market in domestic sector, replacement of halon.
• Household Ownership Levels - smoke detectors, fire alarms, extinguishers, blankets, sprinkler systems.
• Buying and Specification Process - range of equipment installed by contractors, specification and purchasing responsibility for equipment.

DISTRIBUTION AND SUPPLY - SECURITY & FIRE

• Review of distribution structure for security and fire alarm products - manufacturers, specialist distributors, electrical wholesalers, DIY Multiples, Independents etc.
• Sources of Supply - major sources by product, frequency of usage of sources, factors influencing choice, differences between security and fire equipment.
• Review of major suppliers in Security and Fire Systems Markets - Leading companies, vertically integrated and specialist suppliers, market positioning.
• Contractors/Installers Market - Major Contractors, specialist and non-specialist (electrical contractors etc), external influences (insurance companies, growth of DIY installations, APCO policy etc.) Future prospects.
• Review of Imports and Exports for alarm systems and extinguishers.

Back to Top

EXECUTIVE SUMMARY

Overall, the 1990s have been a period of steady growth for the electronic security and fire protection market, to a present-day value estimated at £1.4bn per annum at manufacturers' selling prices.

Throughout the 1990s, all parts of the security market, but in particular those relating to electronic security, enjoyed considerable growth. This was fuelled largely by rising crime levels and, perhaps as importantly, the public's perception of the threat of burglary, both in a domestic and commercial setting. In addition, the replacement market was boosted in the early to mid-1990s by the ACPO policy regarding false alarms, but this policy has largely worked its way through the affected properties. The intruder alarm sector is now a mature market, and is more sensitive to economic factors such as the rate of addition to the building stock and, to a far lesser extent, house-moving activity. These latter considerations are also influential to the fire protection and detection sector, which has, grown only modestly through the 1990s.

Penetration of the domestic sector, driven by distribution in the DIY stores with simple and affordable electronic security alarms, has greatly increased in the 1990s, in spite of the ACPO policy introduction. This presence in the DIY stores has eroded much of the professional installers potential market and was made possible by developing easy to install wire-free systems, coupled with manufacturing volume to bring the unit cost down.

The greatest growth in the overall security market in the 1990s has been in the CCTV and access control sectors. At the outset, the usage of CCTV was made controversial by the 'infringement of liberty' lobbyists, but these have been largely overcome by the growth of evidence that they are effective in reducing crime rates in the areas under surveillance. The value of CCTV systems has latterly been given a high profile through the use of CCTV footage of criminals being 'caught in the act', serving as popular prime-time television 'entertainment'. CCTV now enjoys widespread usage in public places such as shopping precincts and other key locations in town and city centres. Their provision was encouraged by funding from the Conservative Government in the mid-1990s. In July 1998, the Labour Government launched a £250m 3-year 'crime reduction programme' (although much of it is targeted at vehicle crime). A further expenditure of £170m was announced in March 1999, of which around half will be allocated for reducing crime and improving house security, effectvely extending the scope of CCTV systems to such places as high-risk residential estates.

Employee safety and the economic need to make opportunistic theft more difficult, particularly within commercial premises, are the main factors which have contributed to growth in the access control systems sector. As these systems have become more affordable the scope of potential end use applications has widened. Access control systems have experienced rapid technological evolution, providing end-users with additional benefits such as the ability to collect employee attendance data.

In the UK, fire protection is now a mature market sector. Service and maintenance contracts provide a stream of revenue, but the volume of new business is heavily reliant upon new construction activity. Thus the fire protection systems market followed the construction industry into recession in the early 1990s, but has gradually recovered with improvements in commercial and industrial new build.

In the domestic sector, sales of smoke detectors enjoyed rapid growth during the early 1990s because of high levels of media attention, but the domestic sector has reached saturation point and sales are forecast to decline over the next few years, being largely dependent on installations in new homes.

Although many households have smoke detectors, few have extinguishers or fire blankets and virtually none have sprinkler systems. Therefore, the fortunes of the extinguisher and sprinkler sector follow those of the non-domestic construction sector, with sprinkler systems usually installed at the time of construction of a new building. The ban on halon-based fire extinguishers in 1994 led to a mini-boom in terms of volume sales, but for many companies competing in this market benefits were tempered by competitive pricing strategies in the commercial sector.

In terms of the supply structure, the main feature of the electronic security and fire protection systems market in the mid- and late-1990s has been the volume of mergers and acquisitions, to the extent that supply is polarised. At one 'pole' are conglomerates with interests in all areas of this diverse market, and at the other are relatively small companies specialising in niche markets.

The major players in the UK market are Williams plc, which continues to trade under the well-known names of its subsidiaries, which include Chubb, Kidde, Yale and Angus Fire Armour, and ADT Fire and Security formed recently from the merger of ADT Security Systems, Modern Security Systems and Thorn Security. ADT Fire and Security is part of Tyco International, a Bermuda-registered worldwide company. Tyco is the world's largest manufacturer and installer of fire protection systems, and the largest provider of electronic security systems to the European and North American markets. Other leading companies in this field include Menvier Group (owned by Coopers Inc), and Shorrocks.

Companies within the fire sector include Apollo Fire Detectors (owned by the Halma Group), Caradon Gent, Wormald Fire Systems and the smaller Grinnell Manufacturing (also owned by Tyco International), How Fire and Preussag Fire Protection. Companies within the electronic security and CCTV sector are more numerous and include Blick, Johnson Control Systems, Ademco Microtech, Dedicated Micros, Norbain and Sensormatic Camera, as well as companies from the 'traditional' video arena such as JVC, Sanyo and Panasonic.

The major companies often compete within several market sectors and have activities spanning the whole spectrum, from manufacturing to installation and maintenance, and the management of their own alarm receiving centres (ARCs). Firstly as installers (frequently of their own brand) and secondly as major suppliers, these players are influential in the distribution network, tending to reduce sales opportunities for specialist distributors. Nevertheless, the specialist knowledge which these distributors possess enables them to retain their share of the distribution channels and it is now thought that now less than 10 percent of the UK's electronic security and fire protection systems products pass through the electrical wholesalers' channel.

Fire alarm and electronic security systems are professionally installed either by specialist contractors or electrical contractors. Many of the specialist contractors will have gained approval from one of the relevant inspectorates; such certification is often extremely important to the end user, either because it is a specified condition of cover provision by their insurers or because a discount is offered on their premium if this condition is fulfilled.

The overall outlook for the industry is generally optimistic, underpinned by steady improvement in both the domestic and non-domestic construction markets and continued government funding of 'community' security projects.

However, fire protection companies will become increasingly reliant on technological advances to add value to their products and gaining share in a mature market sector. The access control market is growing less rapidly than in the mid-1990s, whereas the CCTV market remains buoyant reflecting public spending by local authorities, health and education establishments.

Back to Top

TABLE OF CONTENTS

Text © 2000AMA Research

Back to Top

Back To REPORTFINDER HOME PAGE

Ariadne - working together with our customers to enhance productivity and increase knowledge

© 2000 www.the-list.co.uk Ariadne

Last updated by Jacob van Eldik 26th February 2000