Factors that will affect the development of the security industry in 2012

Moving towards emerging markets At the macroeconomic level, financial uncertainty is also pushing security practitioners into different regional markets. The debt problems of developed countries are in stark contrast to the strong growth levels in emerging markets. The World Bank’s 2011 Global Development Perspective - Multipolarization report predicts that long-term economic growth will be concentrated in emerging markets. "As a group, emerging economies will increase at an average annual rate of 4.7% between 2011 and 2025. At the same time, it is expected that the developed economies will have a 2.3% growth rate during the same period." 2012 will take its long-term development. The direction of the pace. The latest report of the International Monetary Fund (IMF) “World Economic Outlook” pointed out that they predict that by the end of 2011, the world’s economic growth will reach 4%, and continue until 2012, but the distribution is extremely uneven. “In 2011, the economic growth of emerging economies was 6.4%, but the developed economies only grew by 1.6%.”

A world perspective that divides this developed and developing market into two will also appear in the field of security. Traditionally, the United States and Western Europe, especially the United Kingdom, have always been the headquarters of security. However, given that they are relatively mature markets, most end users have deployed security products. Coupled with the disturbing level of national debt that may affect the loans and new construction projects of banking financial institutions, there are few opportunities in developed country markets in 2012.

In the security industry, some participants are reducing their risk by increasing their focus on emerging markets, such as Asia and Latin America. Despite some uncertainty, China's huge potential is attracting investors. (For a more in-depth look at Asia and China, please refer to the next article "Focus on Asia and China"). Emerging markets are growing, and in recent years have become the driving force of global economic growth. TDSi Managing Director John Davies said that TDSi decided to focus on China and the Middle East and push it into new markets in West Africa and Southeast Asia. "We regard per capita GDP as a measure of the market for investment in electronic security systems."

As there are few security systems in emerging markets, the market potential is far greater than that of developed countries. Regarding the global electronic access control system market, Global Industry Analysts stated in a written statement: “Although developed markets, such as Europe and North America, have been traditional revenue contributors to the market, some developing regional markets such as Asia Pacific Latin America and the Middle East are expected to dominate future economic growth."

This trend is reflected in the market size and growth rate of products in different regions. Since 2010, the Americas has the largest market size at present, followed by Europe, the Middle East, Africa, and finally the Asia Pacific region. However, we have seen the opposite growth rate. From the growth rate, it can be seen that the growth rate in the Asia-Pacific region is faster than in Europe, the Middle East, Africa and the Americas, especially in the video surveillance market. The growth rate in the Asia-Pacific region is 14.8%, compared with 5.7% in Europe, the Middle East, and Africa. 9.5%. It is expected that this trend will continue in 2012.

Although the growth rate of developed countries is not fast enough, this does not mean that their markets will disappear. In fact, it is expected that the American access control market will show a healthy development trend in 2012. Moreover, based on market size, Asia is still far from Europe, the Middle East and Africa or the Americas. Srimoolanthan said: "From a geographical point of view, Europe and North America will continue to promote the growth of the security industry."

Again, this does not mean that developing economies are not affected by the euro zone crisis. According to the International Monetary Fund's (IMF) World Economic Outlook, given the increasingly interconnected global connections, continued turmoil in the eurozone will affect other regions, including emerging markets. "So far, they have largely avoided the development of these adverse events and have to deal with volatile capital flows, but overall they continue to maintain high growth."

An interesting phenomenon in moving toward emerging markets is the higher price sensitivity of the security industry. Ken Li, President of Asia Security Technology Co., Ltd., said: "The competition for profits in emerging markets such as Southeast Asia and Latin America is becoming increasingly fierce." Das added: "Compared to the United States, including India, China, Taiwan and Southeast Asia Emerging markets are quite price-sensitive."

While seeking lower prices, Joe Qiu, director of overseas business at Shenzhen Tongwei Digital Technology Co., Ltd., reminded us that we should not sacrifice quality. “Our position on quality is uncompromising. More and more second- and third-tier participants are participating in the security industry, but their product quality and reliability are doubtful.”

The need to safeguard personnel and asset security will contribute to the positive development of the security market in 2012. However, given the global economic pressure, the security market will be different in different regions. At present, many security industry giants have turned their attention to certain emerging markets.