There was a decline in the market for electronic
security and access control products following the economic
downturn, largely due to the significant fall in construction
levels in the private sector. Both domestic and commercial demand
for electronic security products has been impacted by the economic
downturn and resultant lower levels of investment and expenditure
in the private sector.
There has been a significant decline in private
construction levels in the 2008-10 period and in that period the
electronic security market has become increasingly reliant on
public sector expenditure for both new installations and
replacements. Installations in the public sector have gained share
in recent years following higher levels of expenditure. New
construction and RMI expenditure in the education and health
sectors has been buoyant in recent years supporting underlying
demand in the electronic security sector.
A high level of price competition has also
contributed to the overall decline in market value over the last
two years and suppliers are experiencing tighter margins and
increasing competition. End-users have become increasingly focused
on price and value for money. The proliferation of cheaper
imports, and falling prices in the technology sector, as well as
the use of compulsory competitive tendering (particularly in the
public sector) has also affected overall development of the market
in value terms.
The market for intruder alarms is mature, pricing
remains competitive and consequently growth levels are subdued.
The CCTV sector performed relatively well during the early stages
of the recession, with prolonged production shut-downs in sectors
such as automotive resulting in increased security requirements.
The market for Access Control equipment has remained relatively
buoyant up to 2009 supported by demand from the education and
health sectors and the residential and commercial sectors prior to
the recession. There has been less price competition in this
sector compared with CCTV, which has supported higher levels of
value growth.
Modest growth is expected within the UK electronic
security products and systems market in the short term, given the
maturity of some product sectors and the impact of the current
economic climate on some key end-use markets.
In the short to medium term future, the prospects
for the overall electronic security market are more positive.
While there have been a number of budget cuts following the
spending review which will undoubtedly impact on large scale
projects, some public sectors will continue to invest in
electronic security systems, supported by the continued threat of
terrorism and essential upgrades to estates.
The recent civil unrest and riots in several major
cities may prompt a review of the current CCTV systems installed
by retailers and local councils. CCTV has proved a useful tool for
identifying those responsible for the vandalism and theft, while
also highlighting the poor quality of some CCTV images.
