The market for electronic security products and services has been growing steadily at between 2015 and 2019, before a sharp contraction in 2020 caused by the Covid-19 pandemic and its impact on the construction sector and on economic activity more generally.
The UK electronic security market is mature, especially in the non-residential sector, in terms of the proportion of premises that have some form of security equipment installed. This means that demand for replacement and upgrades is the key feature of the market and accounts for the majority of end-user sales.
Technological developments have driven the replacement market, with heavy expenditure on R&D a key characteristic of the market. Leading technological trends include improvements in image quality, thermal imaging, artificial intelligence (AI), deep-learning analytics for CCTV, cloud-based solutions for video management systems, and facial recognition and other biometrics for access control. The Covid-19 pandemic has generated further development of specific applications such as management of crowd density and touchless access control.
Following the downturn in 2020, the prospects for recovery in the electronic security market are good. Services are likely to be the fastest growing area of the market. The increased numbers of CCTV cameras and electronic access control hardware devices, higher image quality, and the retention of larger quantities of footage for analytic purposes, will combine to create increased data storage requirements, generating a rise in demand for cloud-based data hosting services to reduce capital expenditure on in-house servers and software.