Security

A Stable And Quiet Time For Security But Wireless Moves On

At the end of last year we forecast that the start of 2012 would offer little or no change in demand for physical security systems and that acquisition, alliance and sentiment about the future would be optimistic but sober. The first 2 months have borne this out; no announcements of billion dollar acquisitions, major investments or other inspiring market shaping news. Even the market research companies are toning down their forecast with few double digit growth expectations for 2012. Whilst January and February have been without dramatic news it has been pretty positive, proving yet again that this is a robust business and a safe port in the financial storm. The best measure to assess the state of the market is to review the financial reports of the major players and in the last 2 months the public companies have been publishing their 2011 accounts and future expectations; these have been encouraging. Axis yet again […]

Stay ahead of the pack

with the latest independent smart building research and thought leadership.

Have an account? Login

Subscribe Now for just $200 per year per user (just $17 USD per month) for Access to Quality Independent Smart Building Research & Analysis!

What Exactly Do you Get?

  • Access to Website Articles and Notes. Unlimited Access to the Library of over 1,700 Articles Spanning 10 Years.
  • 10% discount on ALL Memoori Research reports for Subscribers! So if you only buy ONE report you will get your subscription fee back!
  • Industry-leading Analysis Every Week, Direct to your Inbox.
  • AND Cancel at any time
Subscribe Now
At the end of last year we forecast that the start of 2012 would offer little or no change in demand for physical security systems and that acquisition, alliance and sentiment about the future would be optimistic but sober.

The first 2 months have borne this out; no announcements of billion dollar acquisitions, major investments or other inspiring market shaping news. Even the market research companies are toning down their forecast with few double digit growth expectations for 2012. Whilst January and February have been without dramatic news it has been pretty positive, proving yet again that this is a robust business and a safe port in the financial storm.

The best measure to assess the state of the market is to review the financial reports of the major players and in the last 2 months the public companies have been publishing their 2011 accounts and future expectations; these have been encouraging.

Axis yet again confirmed it is the doyen of the IP Video networking sector, producing sales in 2011 of SEK3,578M (2,933), corresponding to growth of 22%. Net sales increased by 33% in local currencies. Operating profit increased to SEK 633M (415), which corresponds to an operating margin of 17.7% (14.1) and profit after tax amounted to SEK 456M (300).

The end of 2011 marked Axis's slowest growth quarter in more than 2 years and whilst world trading conditions are difficult they forecast these levels of growth will continue in 2012 through increasing their market share and expansion into growth regions of the world.

Of the major traditional suppliers Tyco sales rose 4% to $4.21 billion in the last quarter of 2011. Services accounted for 45% of total revenue, whilst the biggest division, which makes and services security systems for homes and businesses, posted slightly higher sales, but earnings dipped. Interestingly the smaller fire protection and flow control businesses showed higher sales and profits. Honeywell had sales of $36.5 billion in 2011, up approximately 13% over 2010, whilst the Automation and Controls Division made a 4% growth.

Siemens, Schneider and UTC increased their revenues in 2011, but we believe that their security business would not have increased more than 4%. Much smaller companies but specialists in the business such as Mobotix, Napco and Nedap all achieved near or double digit growth in 2011.

In our end of year report http://memoori.com/physical-security-2011 we forecast a slowing down in the value of acquisitions and mergers resulting in a 2.5% reduction in 2012. In the first 2 months of this year 8 acquisitions have been announced, compared with 14 in the same period in 2010. This represents a significant fall in both value and volume. However it only requires 2 multi-billion deals for this situation to be rapidly reversed.

In our report we identified and reviewed the potential growth areas for security over the next 5 years and one of these was the increasing use of wireless communication. The good news is that in the last 2 months significantly more column inches have been devoted to the subject, a sure sign that the market is gaining traction. The market is still small probably around $125m and growing in line with IP cameras which make it easier to use and bring down total installed cost compared with wired versions.

No doubt it will have to cut its teeth on areas where wired connection is not possible or practical such as outside buildings and mobile surveillance; two good examples of where most effort is being aimed.

In January Motorola Solutions Inc attached its flag to the wireless mast with an Investment in MicroPower Technologies of $6.5 million slated for market development and innovation. MicroPower's fully integrated, IP surveillance innovations incorporate proprietary wireless technologies to enhance data transmission even in heavily congested environments. This looks a compelling product that could quickly drive the market forward.

Most Popular Articles

Smart Buildings

Azbil Building Automation Business & FY2023 Financials Examined

In this Research Note, we examine Azbil, a Japanese public company with a leading position in the domestic building automation market. The financial highlights and growth strategy analysis of the Building Automation business is based on their FY2023 annual results, year ending 31st March 2024, Annual Report 2023, and investor presentations. Azbil Building Automation Financial […]

MapMortar Startup Examined
Energy

MapMortar Examined: The Google Maps for Zero Carbon Building Retrofits

This Research Note examines an early-stage UK startup, MapMortar which has developed a retrofit twin platform designed to help large commercial real estate portfolio owners and asset managers model and simulate portfolio decarbonization to plan, manage, and execute retrofitting at scale. Founded in 2022 as Mortar.io, the startup changed its name to MapMortar, headquartered in […]

AI in Commercial Buildings
Smart Buildings

Major Players Put Their Weight Behind AI in Commercial Buildings

The development of artificial intelligence (AI) in commercial buildings is far-reaching, leading to a broad adoption landscape. The strategic positioning of key players in the AI market for commercial buildings is a critical aspect of understanding the current landscape and the future potential of AI. “Many large building automation firms are at the forefront of […]

Subscribe to the Newsletter & get all our Articles & Research Delivered Straight to your Inbox.

Please enter a valid email

Please enter your name

Please enter company name

By signing up you agree to our privacy policy