Rejoice in a secure future
04 January 2011
Happy New Year to all of our readers. For many this will be the first day back in the workplace after a seasonal break so can I start by hoping that this is an exciting, confident and productive year for all of us in the electronics industry.
For all that ‘the recession years’ are now scheduled to be followed by ‘the austerity years’ for most economies, it seems that the spending power (and enthusiasm) of the majority remains undiminished, which provides a solid foundation for success for the electronics manufacturing community.
One sector that is predicted to have a promising future in all geographic areas is the security equipment market. Waiting in my inbox as I came into work this morning was a report (World Security Equipment) from market research company Freedonia, which forecasts an average annual growth of 7.4% through to 2014, by which time the market will be worth nearly $100 billion.
In general, according to the study, the strongest market gains will be posted in developing parts of Asia, Eastern Europe, Africa and the Middle East where security markets are relatively under-developed. In these regions, product demand will be fuelled by generally strong economic environments, new business formation, foreign investment activity, increased urbanisation, growing middle and upper class populations, and increasing perceived risk of criminal activity.
In 2009, electronic security products accounted for more than 60% of total security equipment demand. Sales of locks and other mechanical security goods will increase as well, bolstered by improving economic climates in developing parts of the world where these products have not yet reached market maturity. The commercial and industrial security equipment market is by far the largest, with nearly 65% of sales in 2009.
China, India, Russia and Turkey are each projected to register double-digit growth until 2014. China’s gains stem from a larger base as it surpassed Japan to become the world’s second largest security equipment market in 2009.
North America is also expected to see total gains (of 8.4 % from 2009 – 2014) well above the global average up to 2014, at which time it is forecast to reach nearly $22bn. Advances will be driven by rapid growth in the US where security equipment spending will benefit from a strong cyclical rebound in construction and capital investment spending from a low 2009 base. Gains in Western Europe will be more modest, with a 4.6% growth resulting in a $26.6bn market by 2014. While these markets will also experience growth resulting from improving economic conditions, rising business and personal incomes, and ongoing concerns about crime, the relative maturity of most security equipment markets in developed areas will constrain future increases in demand.
If anyone would like to look up more details about the study then go to www.freedoniagroup.com.
So with security’s future looking secure, I hope that 2011 is as optimistic for all.
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