Technology developments drive growth in the UK Electronic Security and Access Control Market

The market for electronic security and access control products has improved following several years of relatively poor performance. According to a new report by AMA Research, the market grew by around 4% in 2015 at installed prices. The upturn in 2015 has been driven by improvements in the construction sector, but the market remains very competitive, with high levels of cheaper imports and competitive prices in the technology sector.

CCTV sales accounts for the majority of sales in the market with a share of around 50% by value, with intruder alarms and access control accounting for the balance. The intruder alarm market is mature and increasingly reliant on replacement purchases, but competition also remains high between intruder alarms and other security products. Intruder alarms as standalone products in the commercial sector are now in decline. Overall, the access control market has remained fairly stable during recent years, with price deflation being less of an issue compared to video surveillance products. New technology, along with a gradual shift from mechanical to electrical locks, are forecast to continue to drive replacement sales.

The mature nature of the CCTV market should support a steady shift towards digital replacements using IP technology, with industry sources suggesting that IP-based products now account for the majority of all CCTV sales, particularly in new installations. The ongoing threat of terrorism continues to drive demand for CCTV products in a wide range of sectors, particularly transport and infrastructure.

There is a trend towards greater involvement of IT software and system providers within the electronic security industry, with smart phone and tablet interfacing for remote access to security systems a growth area in all sectors of the market. Competitive pricing and a greater focus on manufacturing efficiencies has also meant that high quality 4K and HD megapixel systems are more affordable, facilitating a shift away from analogue to digital products. Specifiers are continuing to focus on the whole life cost, including replacement, add-on and management costs.

“Technological developments have continued to drive the replacement market in particular, as companies upgrade their systems to incorporate remote monitoring – including wireless technology and cloud-based solutions” said Keith Taylor, Director of AMA Research. “As a result, several key players in the market have formed collaborative partnerships with IT suppliers to facilitate the integration of different products in response to end users increasing requirements for integrated systems combining video surveillance, access control and intruder alarms.”

Competitive pressures within this market has also led to diversification, for example, many of the major manufacturers and installers of video surveillance equipment now also offer services such as web-based video data storage solutions and monitoring.

In the short to medium term future, the prospects for the overall electronic security market are positive, with commercial and public sector applications each accounting for over 15% of installed value. Recent Government announcements outlined increases in capital spending on infrastructure and education, with a consistent level of spend committed on health. Student accommodation may also constitute a growth area going forward. The sustained economic recovery should also support installations in some private end-use sectors. Construction levels in the office sector are expected to experience growth of between 5% and 8% annually up to 2019, and demand in general is improving, although the large supply base in this sector is likely to support the replacement and upgrade of security systems rather than large scale new installations. Overall, the UK electronic security and access control market is forecast to see growth rates of 4-6% per annum until 2020, reflecting a strong focus on security going forward.

The ‘Electronic Security and Access Control Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.