Europe: Security technology - continuing double-digit growth

Sales of US $ 1.29 bn (€ 1.29 bn) were recorded for Europe as a whole in the year 2001 for intruder, smoke and fire alarms, and for security services such as the installation, operation, monitoring, maintenance and repairs, and upgrading of alarms systems. Frost & Sullivan, the international marketing consulting company, forecasts a further increase in sales to US $ 2.57 bn (€ 2.57 bn) by the year 2008. However, this will involve a shift in focus to services.
The total number of alarm systems in European households amounted to 7.3 mio in 2001, which represents a five per cent penetration rate. Approximately one third of these are wireless alarms. The United Kingdom and the Republic of Ireland have the highest penetration rate at nine per cent. The UK in particular is recording increases in sales of easily installed intrusion alarm systems through DIY stores and the Internet. The market researchers also note a continuing lack of interest in smoke detectors in southern Europe.
There are currently more than 100 manufacturers supplying the European residential security equipment market, in addition to distributors importing products from the Far East. The high degree of fragmentation of the market and intensifying competition are putting downward pressure on prices. The Frost & Sullivan report estimates that prices will finally stabilise in about five or six years’ time.
Europe: Residential security equipment market
Sales (US-$ mio)
Change
2001
1.29
12.3 %
2002
1.44
11.5 %
2003
1.60
10.8 %
2004
1.76
10.4 %
2005
1.94
10.1 %
2006
2.13
9.8 %
2007
2.34
9.9 %
2008
2.57
9.9 %