- December 20, 2011
- ARC Advisory Group
ARC says the market for physical security and access control in North America and Europe is low growth but Asian countries are growing at a scorching pace,
December 20, 2011 - The global physical security and access control (PS-AC) market for industrial applications is gradually changing due to fluctuating market dynamics. Post 9/11 security issues were given top priority and the PS-AC market saw a huge demand for security products. But during the recent economic recession, spending on security has decreased due to reduced budgets. Even though spending on security decreased, the overall market observed growth because budget cuts were not as severe for security as they were for other departments. Protection of assets is critical for many industries; hence to a small extent the PS-AC market for industrial plants was able to withstand the impact of the recession. The demand for PS-AC solutions is diverse and varies from region to region. North America and Europe observed the least growth as end users faced slashed budgets. On the other hand, Asia, Middle East, and Latin America saw high growth as a result of industrialization and infrastructure development. Asian countries are growing at a scorching pace, especially India and China. Textile, electronics, automobile, and consumer goods are the booming industries in Asia. In the Middle East, investments are being made in large infrastructure projects in oil & gas, petrochemical, electricity, water, and telecommunication sectors. Government regulations also play a major role in the PS-AC market. Industries requiring critical infrastructure have to comply with strict regulations and mandatorily invest heavily in PS-AC solutions. The physical security and access control market is experiencing a major shift toward IP based solutions. Until now most of the security solutions were analog, but IP based solutions have started to garner more confidence in the market space. This shift is influencing equipment purchases, upgrades, processes, and training. Integrating analog devices with IP based devices is a challenge; hence demand for intelligent PS-AC systems is low in mature economies such as the US and Europe. In these regions, suppliers have to rely heavily on retrofit projects. “These users want to implement state-of-the-art systems, but they must navigate around the existing security or access control infrastructure in their facilities,” according to ARC Research Analyst Joseph Gillespie, principal author of ARC Advisory Group’s new study, “Physical Security and Access Control Systems for Industry Worldwide Outlook” (www.arcweb.com/market-studies/pages/physical-security-access-control-for-industry.aspx). “IP is new to many system integrators as well, and hybrid projects are even more complex. So in this situation, suppliers can train systems integrators and installers to help them better meet end-users’ needs,” adds ARC Analyst Inderpreet Shoker, co-author of the study. Market Embracing Openness End users want ease of operation. They want security solutions that are easier to expand, customize, and integrate with other solutions. Previously, most projects were usually designed around only one supplier’s solution. It is because each part of the system has been optimized to work together, but also because it avoids integration and compatibility issues. But end users are increasingly asking for open solutions that can conveniently tie the differing components and systems together. They want the freedom to choose from a large range of products offered by various suppliers and this is possible with open standards. Organizations, such as The International Society of Automation (ISA), Open Network Video Interface Forum (ONVIF), Physical Security Industry Association (PSIA), and the Security Industry Association (SIA) are driving the development of open standards. Suppliers are shifting to open standards realizing that they have huge value for end users. Suppliers are adopting open standards, collaborating with other suppliers to deliver interoperable systems, and providing services to end user to help them integrate security systems. So when suppliers struggle to remain competitive, end users enjoy better security solutions. About ARC: Founded in 1986, ARC Advisory Group is the leading research and advisory firm for industry. Our coverage of technology from business systems to product and asset lifecycle management, supply chain management, operations management, and automation systems makes us the go-to firm for business and IT executives around the world. For the complex business issues facing organizations today, our analysts have the industry knowledge and first-hand experience to help our clients find the best answers.Learn More
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