A new analysis from market consulting firm Frost and
Sullivan has determined the U.S. commercial end-user
security market generated more than $14.2 billion in
revenue in 2002 and estimates that number to reach $29.4
billion by 2009.
The post 9/11 investment in security and the advancement of
technology in the electronic security industry are the
reasons behind the increasing revenues, according to Frost
and Sullivan analyst Deepak Shetty. “Prices are going down
because of a lot of competition and technology is advancing
so rapidly,” Shetty says. “In the near future, the
replacement of analog with digital will be happening at a
very fact pace.”
Shetty sees some roadblocks ahead, including the slow
economy limiting capital investments, and privacy concerns.
However, he also sees a growing trend toward companies
bundling products to increase revenue. “We’ll see a lot of
it where companies are trying to offer complete solutions
because it boosts their profit margins,” Shetty says.
