The UK electronic security and access control market has performed
relatively well over the last two years, particularly given the
difficult economic climate. Market growth has been supported by
the strength of the CCTV and access control sectors, while the
maturity of the intruder alarm sector with high levels of
penetration has limited the development of this sector.
Both domestic and commercial demand for electronic security
products has been driven by concerns regarding both real and
perceived criminal activity. In recent years, the impact of 9/11,
the July 2005 bomb attacks in London and subsequent events, as
well as preparations for the London Olympics in 2012, are all
influencing demand for Electronic Security and Access Control
products. The emphasis has also now shifted towards more diligent
observation and prevention of crime – which places more demands on
monitoring and access control, rather than simply raising the
alarm and following up once the danger has, in effect, passed.
During the last two to three years in particular, replacement
sales have accelerated, not only as a result of the maturing of a
number of market sectors, but also driven by technological
advances, and the development of more effective products and
systems.
Wireless and IP (Internet Protocol) continue to gain share. High
levels of product innovation are leading to smaller, less
detectable and increasingly sophisticated products, as well as
broadening the range of traditional applications. The use of
digital networks to control and monitor security systems is also
growing.
The overall electronic security market is valued at over £1.4
billion at end-user prices and, despite the construction slowdown,
managed to achieve marginal growth in 2008. While short term
prospects will be more difficult, growth within the UK electronic
security products and systems market is expected to continue at a
relatively modest pace in the short term, given the maturity of
some product sectors and the impact of the current economic
climate on some key markets.
Access control has experienced relatively strong growth and now
accounts for over 25% of the market, with relatively favourable
underlying growth prospects. CCTV, however, is the largest sector
and continues to enjoy growth, with intruder alarms declining in
share as end-users switch to more advanced security systems.
The medium to longer term outlook for the market is relatively
optimistic. The recession has supported the demand for additional
security measures in some sectors of the market, along with
ongoing public sector expenditure, particularly within health,
education and projects driven by the 2012 Olympics.
