Gains and losses of the global market for technical security equipment.
Despite the global economic crisis, the leading companies in the global TSB market stayed afloat in 2007 and remained on the crest of a wave in the past, 2008.
One of the clear confirmations of this is the growth in the number of companies selling goods and services in the segment of technical security equipment.
This growth was observed in 2007, when the mortgage crisis that erupted in the United States, in fact, became the beginning of the global financial, and then economic crisis.
And in 2008 g., despite the economic downturn, the number of companies continued to grow.
Factors and conditions of growth
Topping the list last year was Honeywell Security, which expanded its portfolio. “Probably the most significant event for Honeywell this year was the acquisition of Hand Help Produects and Metrologic Instruments, which will allow us to enter the scanning and mobility areas,” said Frank Roth, vice president of Honeywell Security and Data Collection. “Honeywell will now be able to confidently enter neighboring markets.”
Bosh Security Systems also grew through acquisitions and new product development, having acquired the Canadian company Extreme CCTV in 2008.
“We have made steady progress in recent years through acquisitions and technologies, strategic partnerships, expansion of our regional presence, new product development and expansion of our portfolio,” said Gert van Iperen, chairman of the board of directors of Bosh Security Systems.
Video surveillance supplier Geutebrück achieved a 27.5% profit growth in several ways.
«We have been able to reduce material costs, increase the functionality of our products through intensive development work, and expand our market presence by opening new subsidiaries and strengthening our partner support with focused marketing activities for end customers and training seminars for professionals,» says Katharina Geutebrück, CEO of Geutebrück.
Axis Communications, a leader in network cameras, has increased its profitability by implementing a two-tier partner sales model.
«We sell to a distributor, who sells to a system integrator,» says Ray Mauritsson, CEO of Axis Communications.
«It's a constantly growing program that includes 24,000 partners.»
A wide range of partners gives the company more opportunities.
“The security market is quite fragmented because a lot of small installations are done by small companies,” says Ray Moritson.
“And to maximise market coverage, we have to work with small or local installers.”
Factors and conditions for the fall
Some companies suffered for reasons beyond their control, such as Israeli home security systems supplier Electronics Line 3000.
«The company's revenue decline is certainly due to the significant decline in the dollar against the Israeli new shekel in recent years,» said Amir Hayek, president and CEO of Electronics Line 3000.
The company also increased its R&D investment and incurred development costs for its flagship iConnect product line in 2007 before it was launched in 2008.
How to tell the difference
The strength of a company is also determined by its distinctive features and exclusivity.
For example, Honeywell's broad offering allows it to deliver a fully integrated solution.
«Honeywell is a manufacturer that can, with a great deal of truth, call itself a full-spectrum supplier of security technologies and solutions,» says Frank Roth.
– We have a wealth of experience and deep resources in many areas, including intrusion alarms, video surveillance and access control. We are leaders in integration and making these technologies and solutions work together.”
Honeywell’s wealth of experience sets the pace in the security industry.
“It’s a real differentiator when you have an experienced and well-trained team behind you to help you leverage technology to improve security and maintain revenue,” says Frank Roth.
Expertise in many technologies sets Israeli Nice Systems apart.
“In the security industry, Nice is the only company that offers solutions for the simultaneous capture and analysis of any type of media: from voice, including VoIP (voice over IP), to video and radio,” says Israel Livnat, president of the Nice Security Group.
Last year’s ranking included 31 video surveillance vendors, not counting integrated solutions providers. Having distinctive products was a must for these vendors.
According to MS Research, Axis has captured 32% of the network camera market, introducing a product innovation that could spark a technological revolution.
“We were the first in the network camera market,” says Ray Moritson. “We are a specialist company focused on network video.”
A strong name and a focus on technology have also helped Geutebrück.
«We are a highly innovative family-run company with almost 40 years of experience in the video surveillance business, offering comprehensive, flexible solutions for security professionals and experts,» says Katharina Goitebrück.
The success of Electronics Line 3000 is due to the quality of its products.
«The company designs, develops and manufactures its solutions at its headquarters in Israel, using the latest technology in science and engineering,» says Amir Hayek.
«All solutions produced by Electronics Line 3000 can be easily localized and customized to the specific needs of the partner.»
London 2012 in Review
“While the UK is already facing a crisis, its impact on the industry is not yet clear,” comments Alex Carmichael, technical director of the British Security Industry Association (BSIA).
“Despite rising prices and costs, security must remain a top priority for all businesses.”
With the potential for increased crime within the UK, businesses must take unprecedented steps to strengthen their security measures to prevent crime.
“In the long term, projects such as the London 2012 Olympics will be a boon to the industry,” continues Alex Kamishel.
“However, exporters will face many challenges in the coming months depending on how international markets cope with the global crisis.”
The UK security industry is eagerly awaiting the first tenders for the 2012 Games.
Last summer, the Olympic Purchasing Authority (ODA) announced an interest in building the Olympic Village Command and Perimeter Security System (CPSS).
The CPSS contract includes the design, manufacture, supply, installation, integration, commissioning, stress testing, training and maintenance of a large number of systems.
The overall security investment for the 2012 Games began with a budget of $400 million and has now soared to more than $2 billion.
According to a BBC report, London Underground Police wants to link its 10,000 cameras with thousands of existing cameras installed on highways across the city.
This would enable it to monitor a network of almost half a million CCTV cameras, making it the largest in the world.
Such a network could be controlled from a command point, where the Olympic security directorate will include representatives of the army, police and intelligence services.