Abstract
The security industry is a global industry worth approximately ¬ 90 billion
in 2005. However, with a combined market share of around 75 percent, the
European and North American markets dominate the industry. In 2005, the
European market was the larger of the two; its total value reached an
estimated ¬ 41 billion. The industry is fast growing, the long term annual
growth rate is estimated to between 7 and 9 percent globally, and between 6
and 8 percent in Europe and the US. What is more, the security industry is
cyclical and in general the cyclicality is experienced relatively late in the
economic cycle. Historically, annual growth has exceeded GDP by a few
percentage points each year. Interestingly, crime rate seems to affect the
industry only marginally.
Alarm systems and vehicle tracking systems are the key applications for
wireless M2M communication in the security industry. GSM was incorporated in
security solutions at an early stage and is now to a growing extent being
replaced by GPRS. Market growth is currently strong, but not explosive. In the
future, demand for wireless M2M communication in the security industry will
most of all depend on the development on the alarm systems market. There is a
significant untapped potential in the residential market segment that can be
fulfilled with the latest generation of monitored alarm systems with dual
signalling technology.
Alarm systems are off-the-shelf security systems for small businesses and
private homes. These are divided into two main categories - local alarms and
monitored alarms. The simplest type of local alarm only reacts to activation
by ringing bells to alert the surroundings and scare off intruders. Monitored
alarms are connected to an alarm receiving centre (ARC). When a monitored
alarm is activated, the ARC can respond by dispatching a security patrol or by
contacting the police. Monitored alarm systems are dependent on reliable
communication networks. Around 20 percent of the alarm systems in Europe are
monitored by an ARC.
Vehicle tracking and recovery is the second major application area for
wireless M2M communication in the security industry. Devices combining GPS and
GSM/GPRS technologies enable monitoring services for any mobile object.
Vehicles constitute the main target market by virtue of numbers and individual
value, but there are also many niche markets such as boats, construction
equipment, plants and portable machinery. Similar hardware designs also
constitute the on-board platform for fleet management solutions and the
tracking capabilities of these systems enable basic security applications.
What distinguishes vehicle tracking and recovery system from fleet management
systems is the monitoring and response service of the secure monitoring centre
that is linked to GPS-aided security systems.
Several niche applications for wireless M2M are emerging in the security
industry that have not yet reached substantial volumes. Personal security and
visual security are two application areas offering significant growth
opportunities in the medium and long term. Wearable integrated tracking and
wireless communication devices can be used for both protecting and monitoring
individuals - in the first case for instance lone workers and in the second
case it could be offenders on parole. Surveillance cameras could potentially
generate significant data traffic on high speed mobile networks.
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