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PhysicalSecurity-2013-rounded_v1

The Physical Security Business 2013 to 2017

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 our 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.

Distribution of Sales by Major Grouping by Value
Within its 213 pages and 23 charts and tables, the report sieves out ALL the key facts and draws conclusions, so you can understand what is shaping the future of the physical security industry;
  • The total value of the world’s security equipment market at factory gate prices in 2012 was $23.4 billion. Of this Video Surveillance products at $12.26 billion took a share of 52%. The developed markets of North America and Europe are losing market share to Asia and particularly China which will be the largest single market before the end of this decade.
  • We forecast the Video Surveillance market in 2013 and 2014 will grow at 12% per annum. Looking further ahead growth at this rate by value may be a little more difficult to attain as prices fall partly as a result of component prices falling and more competition from Asian manufacturers. Whilst the product suppliers may well be capable of sustaining this rate of growth ad infinitum we suspect that the SI’s capacity would become strained as they struggled to find and keep highly trained staff. VSaaS will further expand demand for video surveillance products but could also disturb the routes to market.
  • The value of merger and acquisition deals in 2011 was $9.847 billion a rise of 23% over the previous year which was a record high, but in 2012 it declined to $7.168 billion a fall of 27% and this has fallen yet again to $5.030 billion in 2013.
  • For the financial year from September 2012 to August 2013 we identified 16 arrangements investing $240 million in Physical Security. This is marginally down from 2011 / 12 when 18 arrangements invested $267 million.

For only USD $999 this report provides valuable information into how physical security companies can develop their business through merger, acquisition and alliance.


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.


Table of Contents

    • Preface
    • The Executive Summary
      1. Introduction
      2. Size, Structure & Shape of the Business
        • 2.1Market 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
          • 4.4.1 Storage
          • 4.4.2 Standards
          • 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
          • 4.5.3 PSIM
          • 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

Appendix
  • 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

Companies Mentioned Include

  • Axis Communications / Tyco International / Honeywell / Siemens Building Technologies / Bosch / UTC / Assa Abloy / Safran / HIKVision / G4S / Kaba Group / Pelco By Schneider Electric / 3M / Johnson Controls / Ingersoll Rand / Stanley / Avigilon / Axsys / CSST / Dahua / Diebold / Gunnebo / Mobotix / Nedap / Nice Systems / Optex / Panasonic / Risco Group / Verint / Vivotek / Prism Skylabs / Xtralis / Tamron / Samsung / Sanyo…