According to i&i-ProPlan the authors of the report, this is an exciting time for all those involved in the EU-CE(4), ie Czech Republic, Hungary, Poland and Slovakia, electronic security industry for this is a relatively immature business that is about to undergo some rapid evolutionary, if not revolutionary change.
It has substantial size, and claims the report, has the potential to increase by half as much again within the next five years. But the supply side is fragmented and needs restructuring so that more companies can achieve the necessary minimum economic size to invest in IP Systems and Digital Technology and realise this latent potential. However organic growth may well play a more important role in achieving rapid growth in this market during the next few years than growth through acquisition because there are relatively few big suppliers available to acquire. There are wide variations between the size and growth of the three components making up this business, access control, cctv surveillance and across the four countries.
The researchers report that CCTV surveillance is by far the largest business but access control will begin to narrow the gap over the next five years. This is a very robust market with 50% of all sales in the two largest markets of Poland and the Czech Republic going to refurbishment, and replacement business. The main demand drivers at this time are growth and stability in the economy and construction industry, whilst concern over crime and terrorism and the political willingness to address these issues has been secondary during the last five years All the world's major manufacturer suppliers of security products are well established across most of the four countries but none dominate the product market, whilst they have made less impression still on the systems business.
i&i reports that the next five years present major challenges to all those in the supply chain as growth in demand continues across all sectors and the intensity of competition increases. To grow rapidly and profitably in the systems market will require suppliers to focus on delivering total solutions that integrate with the business enterprise in the building.