Integration boosts lagging intruder market

Gothenburg, Sweden

The latest insight information from the Memoori research analysts, suggests that the intruder alarm / perimeter protection market (IA/PP) is at last shaking off its reputation of being the poor relative of the physical security business. They believe this sector is now pushing forward by applying and connecting; radar, thermal / multi-sensor cameras, advanced sensor technologies, wireless technology and also deeper integration with video surveillance & access control.

Although these technologies have all contributed to its growth over the last few years it is still running at less than half the value of the access control and video surveillance product markets. However, Memoori accepts that there could be some video surveillance and access control products that are being installed in IA/PP projects that are not being counted in this sector and this could have distorted growth.

IA/PP is a mature market that is more dependent upon the fortunes of industry and the public sector and here when it comes to investing in capital equipment it has been at the back of the queue. In the last 15 years, compared with access control and video surveillance it has been deprived of retrofitting / modernising old systems and new innovative products have only become available in the last few years.

Slower growth through innovation

Access control and video surveillance businesses growth rates have been running at least double IA/PP because they have been driven by new innovative products that have contributed to reducing operating costs. Now IA/PP is being to benefit from this as well. Nevertheless growth has slowly increased over the last 5 years and the Memoori researchers forecast that it will at least retain this performance for the next 5 years.

According to Memoori, the world market for IA/PP products reached $6.98Bn in 2019 and will grow to $8.83Bn in 2024 at a CAGR of approximately 4.8%, the highest growth the researchers have recorded in the last 11 years. Perimeter security has become a much more important issue in critical infrastructures such as utilities, transportation, government and defence establishments because of the increasing number of threats, which could disrupt operations and lead to huge losses across the whole economy.

More players taking an active role

More companies are taking an active role in this industry offering new solutions. Axis Communications, last year announced their Axis Perimeter Defender product, a video analytics application for intrusion detection. With this launch, Axis is enabling its partners to deliver a scalable and flexible perimeter defence solution through combining cameras with their network horn speakers and third party video management software.

The application forms a comprehensive, video-based solution for perimeter surveillance and protection. Similarly Canada-based Senstar a subsidiary of the Israeli company Magal S3 announced the acquisition of Aimetis for $14m USD in 2016. This acquisition allowed Senstar to become an end-to-end solution provider of outdoor sensors and integrated video assessment for the perimeter protection business.

Radar technology has increased its penetration of perimeter security. Two companies that specialise in this business are Blighter Surveillance Systems and Navtech Radar respectively based in Cambridge and Oxford, United Kingdom. In 2018, Halma Plc acquired Navtech Radar for £21 million.

Blighter Surveillance Systems offers an electronic-scanning radar and sensor solution and has supplied a number of its Blighter B400 long-range ground surveillance radars to Siemens for installation at a national infrastructure site in Europe. These radars combine patented solid-state Passive Electronic Scanning Array (PESA) technology with advanced Frequency Modulated Continuous Wave (FMCW) and Doppler processing.

The main driver for growth in the next 5 years will be the increase in investment in industrial complexes particularly in Asia and the BRIC countries. Advances in sensor and wireless technologies and new radar detection products together with integrating video surveillance, access and outdoor lighting is strengthening this market.

Market growth through integration

Demand for IA/PP systems has grown at a faster pace through the integration with video surveillance and access control. Demand for intruder sensors and alarm products being the staple products of this business have had only a marginal impact on growth in demand.

The intruder alarm equipment industry has traditionally been driven by two factors, local legislation and the insurance provider requirements that business owners install intrusion systems or by residential consumers that purchase an intrusion system from a local dealer. The first is fairly common, regardless of geographical location. Insurance companies have calculated that intrusion systems decrease the number of burglaries, which would cost the insurance company money and so offer incentives such as discounts on their premiums.

Increased investment & advancing technology

The main driver for growth in the next five years will be the increase in investment in industrial complexes particularly in Asia and the BRIC countries and advances in sensor technologies microwave, active infrared, passive infrared, fibre optics and acoustic sensors. These sensors usually cover large areas and offer volumetric protection by detecting the motion of the intruder within the protected space.


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