Security Systems News

APR 2016

Security Systems News is a monthly business newspaper that reaches 25,100 security installers, product distributors, central stations, engineers & architects, and security consultants. Our editorial coverage focuses on breaking news in all major se

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Page 4 of 60 APRIL 2016 SECURITY SYSTEMS NEWS Security StatS 2 By Spencer Ives DALLAS—Between 2016 and 2020 the residential market for smoke detectors will grow, according to a recent Technavio report, and technological trends in the market will shift dramati- cally. "The market size for the resi- dential smoke detector market, specifcally for the U.S., stands … close to around $400 million," Sayani Roy, Technavio industry analyst, told Security Systems News. "By 2020, it is expected to hit around $600 million," she said. Technavio is estimating a roughly 7 percent CAGR for the period, Roy said. Roy pointed to three key mar- ket geographies: Texas, California and Florida. "Texas comprises around 15 percent of the … new demand for smoke detectors, we are not including replacement demand here," she said. "The rise in residential construction in the state is one of the primary reasons [for this growth]." California makes up 8.9 per- cent of the total U.S. market share. "The reason for the growth of smoke detectors in California is … increasing multi-family hous- ing construction projects." The market in Florida will grow due to a law that mandates the use of smoke detectors, as well as numerous housing proj- ects in the state. Florida has a 7.7 percent share of the market. The type of smoke detectors being installed will change over this period, Roy said. The report segments the market into three key detection technologies: ion- ization, photoelectric and dual sensor. Ionization-based detectors are most prevalent now, but will drop considerably over this time peri- od, according to Roy. "The market for ionization-type smoke detec- tors will actually decelerate at a negative CAGR of around 10.85 percent." Replacing ionization detectors with either photo-electric or dual- sensor detectors will be a factor in the growth of the market over this period. New construction of residential buildings will increase the market. Fire-related deaths have been declining mostly due to increased use of smoke detectors, Roy said, and certain detectors are better suited for life safety. "The cause [of] fire deaths is mostly from smoldering fres, which can only be detected by these photoelectric or the dual sensors," she said. Another factor in the decline of ionization detectors is their rate of false alarms, which have led consumers to disable their smoke alarms. Disposal of ionization detectors causes an additional problem because they contain radioactive materials, she said. Increased regulations in the United States will be a major trend in the market, some of which restrict the use of ionization- type detectors, Roy said. "States like Massachusetts, Iowa and Ver- mont—they have banned the use of ionization smoke detectors in their residential buildings." Roy gave another example of government involvement in the market: The city of South Bend, Ind., is considering an initiative to give homeowners two free smoke detectors. US resi smoke detector market to hit $600 million "Integration with the IoT … is expected to open new avenues for the market in terms of revenue." —Sayani Roy, Technavio Technavio report finds that Texas, California and Florida are key growth geographies in this market STATS see page 13 No servers. No receivers. No PBX. No telecom. No IT headaches. Relax. You're already way ahead of the competition with the industry's frst Advanced Cloud Alarm Center Learn more at DICE Corporation and the DICE Corporation logo are registered trademarks of DICE Corporation in the U.S. and other countries. Copyright 2016 DICE Corporation. All rights reserved. Corporation EVENT: Join us at the DICE User Group 2016 at Greektown Casino-Hotel in Detroit, MI Choose a reliable cloud center for your alarm company. Take away the stress of maintaining your own equipment and systems. Operate web-based monitoring and automation software from anywhere with zero capital investment using our cloud-based receiver farms and the industry's only telecom network for alarm signals with no sunset. Learn more about how DICE's multiple UL-Listed alarm centers give you a competitive advantage at

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