Security Systems News

SEP 2017

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

Issue link: http://ssn.epubxp.com/i/865653

Contents of this Issue

Navigation

Page 8 of 46

www.securitysystemsnews.com September 2017 S e CU r I t Y SYS tem S N e WS Security Stat S 2 By Spencer Ives CLEVELAND—The Freedonia Group, a research firm based here, projects that the U.S. security alarm systems market will reach $4.9 billion by 2021, starting at $3.8 billion in 2016, with a CAGR of 5.1 percent between 2016 and 2021. "The biggest driving factor … is going to be the continued growth of construction activ- ity going forward," Katherine Brink, industry analyst, Freedo- nia Industry Studies, told Secu- rity Systems News. Brink added that this factor effects both resi- dential and non-residential. Residential and non-residen- tial sides of the alarm systems m a r k e t b o t h s h o w d e m a n d between 2016 and 2021, accord- ing to Brink, "but nonresiden- tial markets will account for slightly more, with about 52% of demand growth." The market growth is slowing down but is still encouraging, Brink said. Life safety systems account- ed for 57 percent of the total demand in the U.S. security alarm market in 2016, according to Freedonia. Intrusion held 39 percent of the market's demand that year, and PERS made up 4 percent of the demand. In 2021 Freedonia predicts that the demand will be 55 p e rc e n t f o r life safety, 40 p e rc e n t f o r intrusion and 5 percent for PERS. F r e e d o n i a h i g h l i g h t e d P E R S a s a n i n t e r e s t i n g segment of the market. "It's a very dynamic market and it's one where there's been a lot of technical advances. So, it's something that we wanted to highlight as a point of inter- est even though its effect on the overall market is limited," Brink said. Freedonia valued the U.S. PERS market at $155 million in 2016, and forecasts the mar- ket segment to reach $220 mil- lion by 2021 at a CAGR of 7.3 percent. Verification will play a role in the overall security alarm market, according to Brink. "Key technological trends that we're going to be seeing over the time period include the ongo- ing interest in video verifica- tion in the residential market for the intrusion alarms," she said. "There's also been a lot of interest in alarm systems that are interoperable, especially on the commercial side, but also on the residential [side] that can connect with smart homes." Brink pointed to an increas- ing desire among seniors to age in place as a motivating factor in the PERS side of the market, as well as the increasing number of seniors. PERS devices working with other medical monitoring systems will be a key techno- logical trend in this part of the U.S. alarm market, she said. PERS devices also have use cases outside of the senior mar- ket, Freedonia noted, such as with abuse survivors or latch- key children. A potential challenge for PERS systems is the competi- tion from smart phone apps that seek to provide a similar service, according to Brink. System replacement might be a challenge for the U.S. alarm market to 2021, Brink said. "There's not always consistent replacement rates, not only for intrusion alarms, but also for the life safety alarms as well. Even though there's recom- mended replacement times— US alarm market to reach $4.9 billion by 2021 Katherine Brink The Freedonia Group highlights PERS as interesting segment of the US alarm market Stat S see page 5

Articles in this issue

Links on this page

Archives of this issue

view archives of Security Systems News - SEP 2017