The Physical Security Business 2013 to 2017
- Published: December 2013
- Region: Global
- 213 Pages
- Memoori Business Intelligence Ltd
- Kaba Group
This Report is the NEW 2013 Definitive Resource for Physical Security Market Research & Investment Analysis.
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.
- Learn how the industry is reforming in order to develop new security products and systems which will satisfy the end users need to reduce operating costs and move security from a cost center to one that delivers a Return on Investment. Continued growth should be built on the foundation that through disruptive IP technologies and innovative business models, we can move clients security operations from a cost center to a cash generator, whilst converging with other services in the business enterprise.
From a 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.
The market in China has forged ahead at the highest rates of growth recorded in our industry and its aggregate growth over the last 5 years has not slowed down. Despite the fact that its penetration has increased by almost 60% during this time, western leading edge IP companies have failed to assert themselves in what will become the biggest single market in the world. We review the reasons behind this failure.
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.
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Table of Contents
The Executive Summary
2. Size, Structure & Shape of the Business
2.1 Market Size & Forecast to 2017
2.1.1 Market Size & Distribution in 2013
2.1.2 Market Forecast to 2017
2.1.3 Market Size & Trends by Vertical Sectors
2.1.4 Market Penetration by Region
2.1.5 Forecast Growth for the Video Surveillance Market 2013 to 2017
2.1.6 Forecast Growth for the Access Control Market 2013 to 2017
2.1.7 Forecast Growth for the Intruder Alarm Market 2013 to 2017
2.2 Structure of the Business
2.3 Market Share
2.4 Channels of Distribution & their Restructuring
3. Driving Growth Through Serving Customer Needs
3.1 IP is the Most Influential Component
3.2 Improved Performace, ROI & Reduced TCO
3.3 Focus has Intensified Competition & Delivered Better Products
3.4 Developing Business through Joining the Horizontal Layers
3.5 Integrating Access Control with Identity Management
3.5.1 The Move to Cloud Based Systems
3.5.2 Personal Identity Verification Card (PIV Card)
3.5.3 Physical Identity and Access Management (PIAM)
3.6 New Industry Verticals, Shared Intelligence & Voice of Society
3.6.1 New Industry Verticals
3.6.2 Shared Intelligence
3.6.3 Voice of Society
4. Reviewing the Future of Emerging Technology Drivers
4.1 Wireless Technology
4.2 Video Surveillance as a Service (VSaaS) Managed Video and Cloud
4.2.1 What is Holding Back VSaaS & Why will it Win?
4.2.2 Market Size & Forecast to 2017
4.2.3 The New Boys on the Block
4.2.4 Acquisitions and Alliances in VSaaS
4.3 Video Technology, IP Cameras & HDCCTV
4.4 Storage / Standards & Mobile Apps
4.4.3 Mobile Apps
4.5 VMS / Analytics / PSIM / PIAM & Situational Awareness Platforms
4.5.1 Video Management Software (VMS)
4.5.2 Video Security Analytics
4.5.4 Physical Identity and Access Management (PIAM)
4.5.5 Situational Awareness
4.6 New Concepts, Applications & Business Opportunities
4.6.1 New Concepts for Cameras
4.6.2 New Applications for Specialist Cameras
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.M&A Performance / Valuation 2013 & Forecast to 2017
6.1 The Progress of Consolidation & Outlook to 2017
6.1.1 M&A Activity Declines in 2013
6.1.2 Forecast of M&A Business to 2017
6.1.3 M&A Analyzed by Business Segment
6.2 Valuation - Exit Multiples & Drivers
6.2.1 Performance of Exit Multiples 2005 - 2013
6.2.2 Technology / Value Add Solutions - Impact on Valuation
6.3 The US Dominates M&A Activity in the Physical Security Industry
6.4 Strategic Buys Dominate Whilst IPOs & Management Buy Outs Disappoint
7. The Investment Market
7.1 The 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. Identifying Potential Acquisition Targets & Fast Growth Markets
8.1 Potential Acquisition Targets
8.2 Business Opportunities in 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. Alliances Play a Major Role in Delivering Customer Value Proposition
10. Redefining Business Models
10.1 Manufacturers need to adapt to the New Channels of Distribution
10.2 The Geographic Distribution of Sales is Changing with Asia Dominant
10.2.1 Can a Business Model be Found that Solves Both Problems?
10.3 Strong Growth does not Spread Right Across all Vertical Markets
10.4 Security as a Service is Growing and this will Impact on Conventional Practices
10.5 The New Business Model - Brand Through the Internet
A 1.1 - Listing of Venture Capital Companies & Their Security Investments
A 1.2 - Acquisitions & Funding Announced in 2012 / 13
A 1.3 - Potential Acquisition Targets 2012 / 13
A 1.4 - The World’s Major Security & Safety Companies
List of Charts and Figures
Fig 2.1 - World Sales of Security Products 2013
Fig 2.2 - World Distribution of Security Products by Major Regions 2013
Fig 2.3 - World Sales of Security Products 2008 - 2017 ($Bn)
Fig 2.4 - Distribution of Security Systems by Building Type - 2006 & 2013
Fig 2.5 - Comparison of Physical Security Penetration by Major Region 2013
Fig 2.6 - World Sales of Video Surveillance Products 2012 - 2017 ($Bn)
Fig 2.7 - World Sales of Access Control Products 2012 - 2017 ($Bn)
Fig 2.8 - World Sales of Intruder Alarm Products 2012 - 2017 ($Bn)
Fig 2.9 - Distribution of Sales by Major Grouping by Value 2013
Fig 2.10 - Distribution of Sales by Major Grouping by Number of Companies 2013
Fig 2.11 - Average Revenue for Group A, B, C & D Companies ($M) 2013
Fig 2.12 - Distribution Channels for Video Surveillance 2006 & 2013
Fig 6.1 - Security Deals Completed from 2000 to 2013
Fig 6.2 - Forecast of Deals to 2017
Fig 6.3 - M&A by Business Segment 2013 (% of Total M&A Spend by Volume)
Fig 6.4 - Acquisition Valuation Benchmarks 2005 to 2013
Fig 6.5 - Growth through Digital IP Technology
Fig 6.6 - The Physical Security Value Chain
The Global Market for VSaaS 2010 to 2017 ($Bn)
List of Tables
Table A 1.1 - Listing of Venture Capital Companies & Their Security Investments
Table A 1.2 - Acquisitions & Funding Announced in 2011 / 12
Table A 1.3 - Potential Acquisition Targets 2012 / 13
Table A 1.4 - The World’s Major Security & Safety Companies
Global Market for Security Products Worth $23.4 Billion in 2013, Predicts New Report
The total value of world production of security products at factory gate prices in 2013 was $23.4 billion. Of this Video Surveillance products at $12.2 billion took a 52% share.
Combined product sales grew by 8% during the year with growth in the Video Surveillance sector achieving 12%. It is the growth in IP Video Surveillance at around 30% that has made the major contribution and pushed up the demand for security equipment.
This report shows that the industry is wringing out more sales and investment dollars than could be expected given the poor trading conditions across the globe. It’s robust performance is not the direct result of increased concern about crime and terrorism but is also due to the fact that the industry is delivering products and services that meet customer value propositions such as increasing productivity and reducing operating costs whilst delivering ROI.
The report also shows that acclimatizing 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.
About the Report
At 213 pages with 23 charts and tables, The Physical Security Business in 2013 report filters out all the important conclusions, supported with facts, as to what is shaping the future of the security industry.
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Note: Product cover images may vary from those shown