North American perimeter security market to grow

LONDON—Technavio predicts growth in North America's perimeter security market to be about $5.7 billion by 2019, up from $4.1 billion in 2014, a 39 percent increase.

Technavio defines perimeter security as an “intrusion prevention system, which consists of components like barrier and gate sensors, personal identification system control, [and] access communications,” Amrita Choudhury, Technavio senior industry analyst, told Security Systems News.

Increasing government regulations that require perimeter security is one factor driving the growth, she said.

“Technavio expects the perimeter security market in North America to be growing at around 6.5 percent CAGR from 2014 to 2019,” Choudhury said.

The report divided the market into three sectors: access control, video surveillance and alarm and notification systems. Access control is about 38.4 percent of the overall market, while the video surveillance and alarm and notification shares are both around 30.8 percent, according to Choudhury.

All of the sectors will grow by 2019, but the alarm and notification share will decrease in market percentage due to higher growth in access control and surveillance.

“Access control systems, we estimated around $1.6 billion in 2014 and expect it to grow at 7.26 percent CAGR. In 2019 we expect it to reach around $2.28 billion,” she said. New technologies, such as “biometric solutions, cloud-based solutions and multifactor authentications,” will drive this area of the market.

“We estimated [the video surveillance share] to be $1.29 billion in 2014 and $1.75 billion in 2019,” Choudhury said. The surveillance sector will grow from higher demand in enterprise and government buildings, she said. This sector will grow at a 6.3 percent CAGR.

The alarm and notification section was valued at around $1.2 billion, Choudhury said, and it will grow to $1.73 billion by 2019, with a CAGR around 5.92 percent.

Video analytics, fiber-optic sensors and thermal imaging adoption are trends which will add to growth. Outside of the report, Technavio sees solar-powered electric fencing as a possible technological trend to appear in the market.

Organizations could be deterred from implementing perimeter security solutions by the high costs of installation and maintenance, Choudhury said.

The report does not cover specific market opportunities, she said, but it notes nuclear and power industry, oil and gas, government, transportation, manufacturing and commercial companies as prominent end-users.

Axis, Bosch, NICE Systems, and Tyco are top vendors. Choudhury mentioned Anixter, HID Global, Panasonic and Safran as other prominent vendors.