The Physical Security Business 2014 to 2018

Access Control, Intruder Alarms & Video Surveillance

Published: Q4 2014
Date:
Q4 2014
Pages:
239
Charts & Tables:
27
Category:
Physical Security
Questions?
Call +46 8 501 64 177
This Report is the New 2014 Definitive Resource for Access Control, Intruder Alarms & Video Surveillance Market Research & Investment Analysis

The game changer in the Physical Security Industry is still IP driven not just across Video Surveillance but now into Access Control and Intruder Alarms. The Physical Security industry is moving fast to an all IP driven business, which has vastly improved and extended the value propositions for its customers.

Security companies that are demonstrating how improved ROI can be achieved through making businesses operate more efficiently are growing fast and profitably. The Internet of Things (IoT) is now at the top of the Hype Curve and it will take at least 5 years before it reaches the slope of enlightenment. When it does, analogue security systems will suffer a rapid decline.

WHY DO YOU NEED THIS REPORT?
  • Gain insightful information about this business for your strategic planning exercises across 3 main product segments —Access Control, Video Surveillance (CCTV) and Intruder Alarms.
  • Discover the valuations and exit multiples paid for security companies. What is driving M&A and Investment in this business?
  • Understand how technology is influencing this industries future and the effect it will have on your business and investments.

From our detailed analysis of the structure of the Industry, it is clear that the products market is being led by a small group of leading edge companies that are relatively new starts in the business. They have taken the opportunity to use disruptive technology to produce products that can deliver on customers requirements. By contrast the major conglomerates share of the product market has declined and they have failed to correct this through their normal process of growth through acquisition. Are major conglomerates losing interest in the security business? Most have made major acquisitions in their other businesses and they have significant cash reserves on their balance sheets.

A major change in the geographic distribution of sales is taking place with Asia delivering the highest rate of growth and increasing its market share. This will continue because there is still a massive latent demand waiting to be exploited. In China penetration is only one third of the size of North America. However the leading edge manufacturers of the west are failing to get their share of this business, which is dominated by Chinese manufacturers. 2 of the world’s largest manufacturers of Video Surveillance products are now Chinese and they have within the last 2 years established a significant presence in western markets.


WITHIN ITS 239 PAGES AND 27 CHARTS AND TABLES, THE REPORT SIEVES OUT ALL THE KEY FACTS AND DRAWS CONCLUSIONS, SO YOU CAN UNDERSTAND WHAT IS SHAPING THE FUTURE OF THE SECURITY INDUSTRY;
  • The total value of world production at factory gate prices was $25.28 billion. Of this Video Surveillance products at $13.48 billion take a share of 53%, access control at $5.62 billion takes a 23% share and intruder alarms at $6.18 billion has a 24% share. The developed markets of North America and the EU are losing market share to Asia and particularly China, which will be the largest single market by the end of this decade.
  • In 2014 the combined product sales grew by 7.5% with growth in the video surveillance sector achieving 9.9%.
  • Growth in the sales of Access Control has increased to 10% as it moves into IP Network systems and biometric and identity management systems; it could become the number one growth market in 2015.
  • In 2014 we identified 26 deals compared with 34 in 2013, and 82 in 2011. Whilst the number of deals and total value of acquisitions has fallen the average value of a deal has increased from $120m in 2011 to $166 million in 2014.

For only USD $1,500 this report provides valuable information into how physical security companies can develop their business through merger, acquisition and alliance.



WHO SHOULD BUY THIS REPORT?

The information contained in this report will be of value to all those engaged in managing, operating and investing in physical security companies (and their advisors) around the world. In particular those wishing to acquire, merge, sell or find alliance partners will find it particularly useful.


Table of Contents
  • Preface
  • The Executive Summary
    1. 1. Introduction
    2. 2. Size, Structure & Shape of the Business
      • 2.1Sizing & Comparing Access – Intruder – Video
      • 2.2World Distribution of Security Products by Major Regions
        • 2.2.1 The Status in 2014
        • 2.2.2 Market Forecast to 2018
        • 2.2.3 Market Size & Trends by Vertical Sectors
        • 2.2.4 Market Penetration by Region
      • 2.3The Video Surveillance Market
        • 2.3.1 Market Size 2014 & Forecast to 2018
        • 2.3.2 Market Size Cameras
        • 2.3.3 Identifying & Measuring the Performance of Leading Camera Suppliers
        • 2.3.4 Market Size Video Management Software Systems
        • 2.3.5 Identifying & Measuring the Performance of Leading VMS Suppliers
        • 2.3.6 The Global Market for VSaaS 2010 – 2018
      • 2.4The Access Control Market 2014 to 2018
        • 2.4.1 Market Size 2014 & Forecast to 2018
        • 2.4.2 Identifying Measuring the Performance of Leading Access Control Suppliers
      • 2.5The Intruder Alarm Market 2014 to 2018
        • 2.5.1 Market Size 2014 & Forecast to 2018
        • 2.5.2 Identifying & Measuring the Performance of Leading Suppliers
      • 2.6 Structure of the Business
      • 2.7 Market Share
      • 2.8 Channels of Distribution & their Restructuring
    3. 3. Serving Customer Needs is the Number 1 Driver
      • 3.1 Growth Through IP Network
      • 3.2 Growth Through Elevating Security to a Profit Centre
      • 3.3 Growth Through Focus, Vertical & Regional Markets
      • 3.4 Growth Through Integration, Convergence & IoT
      • 3.5Growth Through Integrating Access Control, Biometrics, Identity Management & NFC
        • 3.5.1 Integration Across Physical Security Businesses
        • 3.5.2 The Move to Cloud Based Systems
        • 3.5.3 Personal Identity Verification Card (PIV Card)
        • 3.5.4 Physical Identity and Access Management (PIAM)
        • 3.5.5 Near Field Communications (NFC)
      • 3.6Growth Through New Industry Verticals, Shared Intelligence, Voice of Society and IoT
        • 3.6.1 New Industry Verticals
        • 3.6.2 Shared Services, Smart / Safe Cities & IoT
        • 3.6.3 Shared Intelligence in the Private Sector
        • 3.6.4 Voice of Society
    4. 4.Reviewing the Future of Emerging Technology Drivers
      • 4.1Wireless Technology
        • 4.1.1 IP Networks Opens up Integration and the Need for Wireless in the Retrofit Business
        • 4.1.2 Wireless in the Video Surveillance Market
        • 4.1.3 Wireless in the Access Control Market
        • 4.1.4 Leading Manufacturers of Wireless Mesh Networks in North America
      • 4.2Video Surveillance as a Service (VSaaS) Managed Video and Cloud
        • 4.2.2 Cloud Storage
        • 4.2.3 What is Holding Back VSaaS & Why it Will Win?
        • 4.2.4 The New Boys on the Block
        • 4.2.5 Acquisitions and Alliances in MVaaS & VSaaS
      • 4.3 Video Technology, IP Cameras & HDCCTV
      • 4.4Storage / Standards & Mobile Apps
        • 4.4.1 Storage
        • 4.4.2 Standards
        • 4.4.3 Mobile Apps
      • 4.5VMS / Analytics / PSIM / PIAM & Situational Awareness Platforms
        • 4.5.1 Video Management Software (VMS)
        • 4.5.2 Video Security Analytics
        • 4.5.3 PSIM
        • 4.5.4 Physical Identity and Access Management (PIAM)
        • 4.5.5 Situational Awareness
      • 4.6New Concepts, Applications & Business Opportunities
        • 4.6.1 New Concepts for Cameras
        • 4.6.2 New Applications for Specialist Cameras
    5. 5. Consolidation through Internal Strategic & External Acquisitions
      • 5.1 Internal Strategic Acquisitions
      • 5.2 External Buys – Defense / IT & Communications Related Companies
      • 5.3 Will M&A Play a More Important Role in the Next 5 Years
    6. 6. M&A Performance by Sector – Valuation and Outlook 2014 to 2018
      • 6.1The Outlook for M&A to 2018
        • 6.1.1 M&A Activity Declines in 2014
        • 6.1.2 Forecast of M&A Business to 2018
        • 6.1.3 M&A Analyzed by Business Segment
      • 6.2Valuation – Exit Multiples & Drivers
        • 6.2.1 Performance of Exit Multiples 2005 – 2014
        • 6.2.2 Technology / Value Add Solutions – Impact on Valuation
      • 6.3 The US Continues to Dominates M&A Activity in the Physical Security Industry
      • 6.4 Strategic Buys Dominate Whilst IPO’s and MBO’s Disappoint
    7. 7. The Investment Market
      • 7.1The State of the Investment Business & Exposure to the Security Industry
        • 7.1.1 Impact on the Security Industry
      • 7.2 Investors in the Security Industry & Recipients
    8. 8. Identifying Potential Acquisition Targets & Fast Growth Markets
      • 8.1 Potential Acquisition Targets
      • 8.2Directing Acquisition to the Fastest Growth Markets
        • 8.2.1 The IP Video Industry
        • 8.2.2 Security Management Software
        • 8.2.3 Video Surveillance as a Service (VSaaS)
        • 8.2.4 Access Control, Biometrics & Identity Authorization
    9. 9. Alliances Play a Major Role in Delivering Customer Value Propositions
    10. 10. Redefining Business Models
      • 10.1 Product Focus – Package Solutions – Back to Product Focus?
      • 10.2 Brand through the Internet
      • 10.3 The Impact of IoT on Physical Security
      • 10.4 Manufacturers need to adapt to the New Channels of Distribution
      • 10.5Geographic Distribution is changing with Asia Becoming Dominant
        • 10.5.1 Alliance with Chinese Manufacturers-Sharing the Dominant Asia Market
      • 10.6 Strong Growth does not Spread Right Across all Vertical Markets
      • 10.7 Security as a Service is Growing and this will Impact on Conventional Practices

Appendix
  • Table A 1.1 – The World’s Major Security & Safety Companies
  • Table A 1.2 – Acquisitions & Funding Announced in 2013 / 14
  • Table A 1.3 – Potential Acquisition Targets 2013 / 14

List of Charts and Figures
  • Fig 2.1 – World Sales of Security Products 2014
  • Fig 2.2 – World Distribution of Security Products by Major Regions 2014
  • Fig 2.3 – World Sales of Security Products 2008 – 2018 ($Bn)
  • Fig 2.4 – Distribution of Security Systems by Building Type – 2006 & 2014
  • Fig 2.5 – Comparison of Physical Security Penetration by Major Region 2014
  • Fig 2.6 – World Sales of Video Surveillance Products 2013 – 2018 ($Bn)
  • Fig 2.7 – World Sales of Video Surveillance Cameras 2013 – 2018 ($Bn)
  • Fig 2.8 – Performance of Established Players / New Ventures / Challengers / Leaders in the Video Surveillance Camera Market
  • Fig 2.9 – World VMS Market for Video Surveillance 2013 – 2018 ($m)
  • Fig 2.10 – Performance of Established Players / New Ventures / Challengers / Leaders in the VMS Market
  • Fig 2.11 – World Sales of Access Control Products 2013 – 2018 ($Bn)
  • Fig 2.12 – Performance of Established Players / New Ventures / Challengers / Leaders in the Access Control Market
  • Fig 2.13 – World Sales of Intruder Alarm Products 2013 – 2018 ($Bn)
  • Fig 2.14 – Performance of Established Players / New Ventures / Challengers / Leaders in the Intruder Alarm Market
  • Fig 2.15 – Distribution of Sales by Major Grouping by Value 2014
  • Fig 2.16 – Distribution of Sales by Major Grouping by Number of Companies 2014
  • Fig 2.17 – Average Revenue for Group A, B, C & D Companies ($M) 2014
  • Fig 2.18 – Distribution Channels for Video Surveillance 2014
  • Fig 6.1 – Security Deals Completed from 2000 to 2014
  • Fig 6.2 – Forecast of Deals to 2018
  • Fig 6.3 – M&A by Business Segment 2014
  • Fig 6.4 – Acquisition Valuation Benchmarks 2005 to 2014
  • Fig 6.5 – Growth through Digital IP Technology
  • Fig 6.6 – The Physical Security Value Chain

List of Tables
  • Table A 1.1 – The World’s Major Security & Safety Companies
  • Table A 1.2 – Acquisitions & Funding Announced in 2013 / 14
  • Table A 1.3 – Potential Acquisition Targets 2013 / 14

Companies Mentioned Include Among Others
  • 3M / ACTi / Aimetis / Allegion / Arecont / Assa Abloy / Avigilon / Axis Communications / Axsys / Axxonsoft / Bosch / Brivo / Canon / CIAS / Cisco / CSST / Dahua / Diebold / Dropcam / DVTel / Exacq / Flir / G4S / Gallagher / Genetec / Gunnebo / HIKVision / Honeywell / Infinova / Ingersoll Rand / Johnson Controls / Kaba Group / Keri Systems / Legic / Mace / Magal / March Networks / Milestone / Mirasys / Mobotix / Napco / Nedap / Nest (Google) / Nice Systems / OnSSI / Optex / Panasonic / Pelco By Schneider Electric / Prism Skylabs / Risco Group / Safran / Salto / Samsung Techwin / Senstar / Siemens Building Technologies / Sony / Stanley / Synectics / Tamron / TDSi / Tyco International / Ubiqity / Uniview / UTC / Verint / VideoInsight / Vivotek / Xtralis / Zwipe…
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