This first edition of the fire & security equipment contractors’ market report provides a comprehensive analysis of the sector in terms of size, structure and leading players. The market’s recent performance is assessed, while analysis of equipment usage and key end use sectors are also reviewed. Product sectors included are fire alarm systems & detectors, fire extinguishers & sprinkler systems, electronic access controls, intruder alarms and CCTV.

Overall company characteristics and operational issues are reviewed, assessing specification issues, pricing, skills etc, together with a forecast of market prospects up to 2015.

The health of the fire & security equipment contractors market is directly related to the performance of the UK building and construction sectors, primarily influenced by new-build. Until late 2007/early 2008, the UK economy experienced an unprecedented period of growth, underpinned by a buoyant housing market, low inflation and strong consumer spending. This buoyant market underpinned growth in the market between 2004 & 2007, reaching an estimated £3.5 bn in 2007.

In 2008/09 the market came under significant pressure as a result of the downturn in new build in both the non-domestic and housing markets. As a result, in 2009 it is estimated that the market was worth around £3.25 bn at installed prices. Recovery in some key end-use sectors reduced the level of decline in 2010, although sectors such as commercial and retail continued to suffer. The market was estimated to be worth around £3.2bn in 2010.

End-users have become increasingly focused on the overall lifecycle cost of a system including product, installation, operational costs, servicing and management costs. This is being driven by the economic situation and the pressure on budgets. Pricing is therefore a key issue for the contractors.

The fire & security equipment contractors market is fragmented comprising mainly of small companies and only a few companies operating nationally. Recent tough trading conditions have driven many companies to undertake a range of initiatives including cost-cutting exercises, cutting jobs and competitive pricing, with some operating around or just above cost price.

The fire and security equipment contractors have fared better than some other contractors involved in construction, with markets such as the roofing contractors market declining significantly during the recession. The fire and security equipment contractors’ market benefits from ongoing services, such as testing and servicing, which are required by law in some products in this market (such as fire equipment).