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High Income Households and 'Security Culture' Support the Recovery of UK Residential Security Market Finds Frost & Sullivan - A decline in construction output caused by the economic recession and rising unemployment affected the UK residential security market
High Income Households and 'Security Culture' Support the Recovery of UK Residential Security Market Finds Frost & Sullivan

 

PRZOOM - /newswire/ - London, United Kingdom, 2010/10/28 - A decline in construction output caused by the economic recession and rising unemployment affected the UK residential security market.

   
 
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After the overall slump in 2009, a modest recovery is expected in 2010 and more sustained one will start in 2012. However, the installed base of professionally monitored systems seems to be relatively untouched by the economic downturn. Many service providers supported by the society awareness of the increasing crime rate, identify high-income households as their market target.

New analysis from Frost & Sullivan (autoid.frost.com), Opportunities in the UK Residential Security Market, finds that the market earned revenues of €350 million in 2009 and estimates this to reach €400 million in 2013. The following product segments are covered in the research: intrusion detection, smoke detection, video surveillance and services.

"Fear of crime and a 'security culture', coupled with large number of high income households as the target market, should counterbalance the economic downturn," notes Suchismita Das, Industry Analyst for Physical Security at Frost & Sullivan. "Although crime rates, in terms of burglaries and thefts, have been steadily declining over the past years, media are focusing on an expected strong rise, mainly associated with rising unemployment, thus leading to fear of crime."

At the same time, proactive marketing and flexible pricing are set to boost consumer awareness and acceptance of residential security products. Smaller companies are intensifying their competitive efforts to obtain market share from larger participants, introducing aggressive pricing structure.

However, still perceived high prices of monitored systems and services paralleled by the poor performances of legacy systems loom as a major challenge to market prospects.

"Even though security is gaining importance among large home owners, it is still very low on the priority scale," explains Ms Das. "This is due to the perception of electronics security systems as a grudge purchase, often associated with high false alarms rates, therefore providing poor value for money."

To succeed on the competitive market, companies need to focus on customer service. They should also deliver clear, simple and transparent maintenance offerings.

Residential security market is extremely fragmented both from a service and manufacturer perspective. Targeting the residential sector with a strategic focus on sales and marketing is enabling many companies to outperform the market. In addition, business models with flexible bundle pricing offer another strategy for success and will become a norm in this sector.

The United Kingdom is one of the most advanced countries in Europe in terms of acceptance of security services. Although the concept of a smart house as an energy-efficient, integrated and intelligent building is still 10-15 years away, there is a clear need for service/systems providers to understand the implications of the evolution from the present day highly segmented security market to a "converged" and integrated future one.

If you are interested in more information about this study, please send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, with your full name, company name, title, and contact details.

Opportunities in the UK Residential Security Market is part of the Automatic Identification & Security Growth Partnership Services programme, which also includes research in the following markets: World Security Services Market and World Alarm Monitoring Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

Opportunities in the UK Residential Security Market / M466

Twitter: twitter.com/frost_sullivan - facebook.com/FrostandSullivan

 
 
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High Income Households and 'Security Culture' Support the Recovery of UK Residential Security Market Finds Frost & Sullivan

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