According to a new report from The Freedonia Group, sales of security alarms systems in the U.S. are expected to increase by 5.1 percent per year through 2021, reaching $4.9 billion, which is in line with overall electronic security product demand for the market.
The research firm said that faster gains will be limited by inconsistent replacement rates in many markets along with building owners using fewer life safety alarms than is recommended, either as a way to cut costs or due to a general lack of awareness. Additionally, Freedonia believes sales of intrusion alarms will continue to be limited due to the fact that many end-users still view them as a non-essential expense.
Among some of the factors that are expected to drive demand include:
- Continued gains in construction activity, since most 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 theses alarms should be replaced.
The research firm forecasts sales of all types of electronic security products to increase 5 percent annually to $17 billion in 2021. These gains will primarily be driven by new installations. As a result, Freedonia said growth will benefit from growing construction activity in both the residential and non-residential markets and the rising number of business establishments. Among the shifts in technology that have driven system updates, according to Freedonia, include:
- 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.
For more information about The Freedonia Group’s "Electronic Security Products U.S. Market Forceasts," click here.
