The report entitled The Physical Security Business in 2012 notes that the value of M&A deals in 2012 declined to $7.168 billion a fall of 27%. Poor economic trading conditions reduced the confidence of major suppliers to go for growth through M&A. Although Memoori analysts do not expect this to continue and forecast a steady annual growth rate in deals of 6.5% to 2017.

Strategic buys within the industry have been the main driver for consolidation in 2012 but its impact is down on 2011 and the company believes that this trend may well continue as companies from the ICT, defense business and private equity make further forays into the security industry.

The industry continues to take steps to reduce operating costs for end users and move security from a cost centre to a cash generator. As a result the industry has been able to attract new investment much from external sources; whilst consolidation and partnership in the middle and smaller tier company sector has strengthened the industries capability to incorporate and maximize the value of emerging technologies.

The report shows that acclimatising to a rapidly changing business environment, reshaped by fast moving technology and new competitors from outside the traditional business leveraging their own expertise, will require clear vision of the present and future business opportunities and skilful implementation of appropriate strategies.

Memoori’s report The Physical Security Business in 2012 is an informative resource for physical security products, combining clearly defined market sizing statistics with analysis of M&A and investments.