Sales of security alarm systems are projected to increase by 5.1 per cent annually through 2021, reaching $4.9 billion, according to a new study from The Freedonia Group called “Electronic Security Products U.S. Market Forecasts.”
According to the study, a number of factors will drive demand, such as continued gains in construction activity, since most alarm systems are installed during the initial construction or major renovations.
Product innovations that provide value-added characteristics, such as false alarm mitigation, and connectivity and interoperability capabilities, will also drive demand by supporting replacement, upgrade rates and value gains.
Finally, ongoing consumer and end user education efforts focused on increasing awareness of the number of life safety alarms necessary in various settings and how often they should be replaced will also promote growth.
However, faster gains will be limited by inconsistent replacement rates in many markets and by building owners using fewer life safety alarms than recommended to cut costs or as a result of lack of awareness.
Additionally, sales of intrusion alarms will continue to be limited because many end users view these alarms as a nonessential expense.
The study also found that sales of all types of electronic security products are expected to increase 5.0 per cent annually to $17 billion in 2021.
These gains will be driven by new installations. As such, growth will benefit from growing construction activity in the residential and nonresidential markets, as well as the increasing number of business establishments.
Technology shifts have driven system updates, including the shift from legacy analog to digital, IP video surveillance systems, and the shift away from card-based technologies to more secure types such as proximity and smart cards.