Abstract
Security Apprehensions Drive Market Growth
A security-conscious corporate world is stepping up the installation of
state-of-the-art security solutions and upgradation of legacy systems, as the
devastating effects of 9/11 terrorist attacks still linger in the United States.
In addition, growing instances of workplace violence, industrial espionage, and
employee theft are compelling commercial end users to revamp their security
systems. They are increasingly deploying digital surveillance systems, closed
circuit television, and access control technologies such as radio frequency
identification, smart cards, biometrics, and 'intelligent' video software, which
will enhance their security preparedness.
This Frost & Sullivan research categorizes the U.S. commercial security
market based on end users (industrial, financial, utilities, retail, healthcare,
and others) and type of security (hardware, software, and services). It examines
the impact of major events in the context of competition, technology, market
trends, and key data points, imparting greater understanding of the future
market scenario, revenue potential, and growth opportunities.
Lean Profit Margins? - Extend Your Product Portfolio
As a result of increasing competition and the subsequent commoditization of
various security and surveillance products, market participants are engaged in
price wars and are extending their product portfolios. The analyst says,
"Extension of product portfolio to include system integration and
end-to-end solutions along with technological innovations such as biometrics and
intelligent video surveillance software will enable companies to expand their
target markets and prevent customer attrition."
Companies are striving to remain competitive and profitable by maintaining
product differentiation and pace of innovation during these challenging times.
"Industrial end users continue to be the largest revenue generators while
the financial and healthcare sectors are rapidly growing to become attractive
markets," states the analyst.
Market Holds Huge Revenue Potential
Growing awareness of security, increase in the Department of Homeland
Security budget, and the hike in other security-related spending are boosting
the demand for various security equipment and services. Price reduction on
equipment and sophisticated facilities such as digital video recording,
"camera-on-a-chip", and intelligent back-end systems are accelerating
market acceptance.
Security software, which includes intelligent surveillance and behavior
recognition; and biometrics for signature verification, facial recognition, and
fingerprint identification, is gaining popularity and fetching high revenues.
Market consolidation, increase in construction projects, strict enforcement of
fire codes and regulations, and the introduction of new, bundled systems and
services are expected to sustain industry growth in the coming years.
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