by Brianna Crandall — October 18, 2017 — Sales of security alarm systems are projected to increase 5.1% per year through 2021, reaching $4.9 billion, about the same as electronic security product demand overall, according to Electronic Security Products US Market Forecasts, a new study from The Freedonia Group, a Cleveland-based industry research firm.
According to the report, faster gains will be limited by inconsistent replacement rates in many markets, as well as building owners using fewer life safety alarms than is recommended, either as a way to cut costs or due to general lack of awareness. In addition, sales of intrusion alarms will continue to be limited by the view among many end-users that these alarms are a nonessential expense.
A variety of factors will drive demand, including:
- Continued gains in construction activity, since most security alarm systems are installed during initial construction or major renovations;
- Product innovations that provide value-added characteristics, such as false alarm mitigation, connectivity and interoperability capabilities, and improved ease of use, which will support both replacement and upgrade rates and value gains; and
- Ongoing consumer and end-user education efforts, which aim to increase awareness of how many life safety alarms are needed in various settings and how frequently these alarms should be replaced.
Sales of all types of electronic security products are expected to increase 5.0% annually to $17 billion in 2021. Gains will be driven by new installations. As a result, growth will benefit from growing construction activity in both the residential and nonresidential markets and the rising number of business establishments.
Shifts in technology have driven system updates, including:
- The shift from legacy analog to digital, Internet protocol (IP) video surveillance systems; and
- The shift away from basic card-based technologies such as magnetic stripe to more secure types such as proximity and, more recently, smart cards.
Electronic Security Products US Market Forecasts by Product and Market (published September 2017, 133 pages) is available for purchase from The Freedonia Group.