The security market is a massive global market, with estimated annual sales in the region of 62 billion USD. The market is highly fragmented where the seven largest players Assa Abloy, United Technologies, Honeywell International, General Electric, Tyco International, Bosch and Ingersoll-Rand jointly accounting for 25 per cent of the market. The remaining 75 per cent is made up of smaller, usually local companies (Source: Figures from US market survey company Freedonia, 2007, where the global security market is defined as the product areas for alarms, entrance security/CCTV, locks, and other electronic and mechanical security equipment.
The security market is also highly fragmented as regards the market offering. Most players are local or regional and offer a small number of products and/or technologies to the majority of customers, while only a few players are able to offer a global total solution – and Gunnebo is one of them.
Driving forces
Urbanisation, a rise in crime and fear of terrorism are three driving factors behind growth on the security market. They have all helped push the security issue higher up the agenda and lead customers to demand increasingly complex solutions.
For Gunnebo the process of urbanisation, for example, has entailed major construction projects and the expansion of public transport around the world, which is driving the market in entrance security. Other factors driving Gunnebo’s business are customers’ endeavours to handle cash more cost-effectively, a greater need for control over who is where and who has access to what, along with a trend for more and more security-related services to switch from physical to electronic security.