Security Alarm Systems Sales to Increase 5% Annually Through 2021, Report Says
Sales of all types of electronic security products are expected to be worth $17 billion in 2021, according to The Freedonia Group.
CLEVELAND — Sales of security alarm systems are forecast to increase 5.1% annually through 2021, reaching $4.9 billion, about the same as electronic security product demand overall, according to The Freedonia Group.
Faster gains will be limited by inconsistent replacement rates in numerous vertical markets, as well as building owners using fewer life-safety alarms than is recommended, due to cost-cutting measures and general lack of awareness. In addition, sales of intrusion alarms will continue to be limited by the view among many end users that the alarms are a nonessential expense.
These and other trends are presented in a new study from The Freedonia Group, titled “Electronic Security Products U.S. Market Forecasts.”
The research firm, based here, cites a variety of factors that will drive demand, including:
- continued gains in construction activity, since most alarm systems are installed during initial construction or major renovations
- product innovations that provide value-added characteristics, such as false alarm mitigation, connectivity and interoperability capabilities, and improved ease of use, which will support both replacement and upgrade rates and value gains
- ongoing consumer and end-user education efforts, which aim to increase awareness of how many life safety alarms are needed in various settings and how frequently theses alarms should be replaced
Sales of all types of electronic security products are expected to increase 5% annually to $17 billion in 2021. Gains will be driven by new installations. As a result, growth will benefit from growing construction activity in both the residential and nonresidential markets and the rising number of business establishments. Shifts in technology have driven system updates, including:
- the shift from legacy analog to digital, Internet Protocol (IP) video surveillance systems
- the shift away from basic card-based technologies such as magnetic stripe to more secure types such as proximity and, more recently, smart cards
The industry study presents historical demand data (2006, 2011, and 2016) and forecasts (2021) by product types (including intrusion alarms, video surveillance, access control, contraband detection, electronic article surveillance systems) and market (nonresidential, consumer).
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