Electronic Security Systems

Electronic Security Systems

This study analyzes US markets for electronic security products and systems. Products covered are electronic alarm systems (e.g., intrusion, fire and smoke, carbon monoxide detectors and PERS alarms), electronic access controls (card-based, biometric and keypad/combination), closed-circuit television systems (e.g., cameras, monitors, recording equipment, and other components and accessories), electronic article surveillance systems, contraband detection systems (e.g., X-ray, metal detectors, trace and bulk explosives detection systems), and other products (primarily automotive security systems, along with various miscellaneous items). Excluded from the scope of the study are mechanical security devices (e.g., locks, keys and safes), as well as installation and other service revenue. Also excluded are dedicated information security hardware and software (e.g., encryption, firewalls and virtual private networks). Radio frequency identification (RFID) products are also excluded because of their extensive use in applications outside of security.

INTRODUCTION xii

I. EXECUTIVE SUMMARY 1

II. MARKET ENVIRONMENT 4
General 4
Demographic & Social Environment 5
Demographic Trends 6
Employment Outlook 9
Macroeconomic Environment 11
Building Construction Outlook 15
Residential 17
Nonresidential 20
Office & Commercial Construction 22
Institutional Construction 23
Industrial Construction 23
Building Stock Trends 24
Business Establishment Trends 27
Motor Vehicle Outlook 29
Public Safety Environment 32
Crime 33
Violent Crimes 36
Property Crimes 38
Terrorism & Other Nonconventional Crimes 41
Fire 46
Pricing Dynamics 49
Legal & Regulatory Environment 51
International Environment 54
World Electronic Security Markets 55
Foreign Trade 57

III. TECHNOLOGY 60
General 60
Electronics Overview 61
Basic Concepts 63
Electronic Components & Systems 64
Information Technology 66
Electronic Security Technologies 69
Sensors 70
Automatic Identification 72
Systems Integration 73
Environmental Control & Building Automation 75
Information Security 76

IV. PRODUCTS 80
General 80
Alarms 84
Intrusion Alarms 87
Types 88
Suppliers 90
Fire Alarms & Smoke Detectors 90
Types 93
Suppliers 95
Carbon Monoxide Detectors 95
Types 98
Suppliers 100
PERS & Related Alarms 100
Access Controls 103
Card-Based Access Controls 107
Keypad/Combination Access Controls 110
Biometric Access Controls 112
Closed-Circuit Television Systems 116
Cameras 120
Monitors 122
Recording Equipment 124
Other Components 125
Contraband Detection Systems 127
Products 129
Bulk EDS 130
Metal Detectors, X-Rays & Advanced Imaging Systems 133
Trace Detectors 136
Suppliers 137
Electronic Article Surveillance Systems 138
Products 141
Suppliers 143
Automotive & Other Electronic Security Products 144
Automotive Security Systems 145
Anti-Theft Systems 147
Keyless Entry Systems 148
Vehicle Recovery Systems 148
All Other 149

V. MARKETS 152
General 152
Trade & Distribution 155
Sector Outlook 156
Electronic Security Outlook 158
Government & Institutional 162
Sector Outlook 162
Electronic Security Outlook 164
Government 166
Institutions 168
Industrial 169
Sector Outlook 169
Electronic Security Outlook 173
Financial Institutions 175
Sector Outlook 176
Electronic Security Outlook 178
Air Transport 180
Sector Outlook 181
Electronic Security Outlook 183
Office & Lodging Establishments 186
Sector Outlook 186
Electronic Security Outlook 187
Services 189
Sector Outlook 191
Electronic Security Outlook 192
Consumer 194
Sector Outlook 195
Electronic Security Outlook 197
Residential 198
Automotive 201

VI. INDUSTRY STRUCTURE 203
General 203
Industry Composition 203
Market Share 208
General Electric 209
Honeywell 210
Tyco International 210
United Technologies 211
Siemens 211
Research & Product Development 211
Manufacturing 213
Marketing & Distribution 214
Mergers & Acquisitions 216
Cooperative Agreements 221
Company Profiles 229
ADT Security Services Incorporated, see Tyco International Limited
Advanced Security Link, see MDI Incorporated
American Building Control Incorporated, see MDI
Incorporated
American Dynamics, see Tyco International Limited
American Science and Engineering Incorporated 230
Analogic Corporation 232
Ansul Incorporated, see Tyco International Limited
ASSA ABLOY AB 234
BRK Brands Incorporated, see Jarden Corporation
Best Access Systems, see Stanley Works
Bosch (Robert) GmbH 241
Care Technologies Incorporated, see Royal Philips Electronics NV
Checkpoint Systems Incorporated 246
Chubb Security Systems, see United Technologies Corporation
Danaher Corporation 249
DataCard Corporation 251
Diebold Incorporated 253
Electronic Technologies Corporation, see Ingersoll-Rand Company Limited
ETI Technology Incorporated, see Smiths Group plc
Federal Signal Corporation 258
Farran Technology Limited, see Smiths Group plc
Fire-Lite Alarms Incorporated, see Honeywell International Incorporated
Folger Adam Electronic Door Controls, see ASSA ABLOY AB
Frisco Bay Industries Limited, see Stanley Works
Gamewell-FCI, see Honeywell International Incorporated
General Electric Company 260
Geoffrey Industries, see Ingersoll-Rand Company Limited
HID Corporation, see ASSA ABLOY AB
Hitachi Limited 269
Honeywell International Incorporated 271
Identix Incorporated 278
Indala Corporation, see ASSA ABLOY AB
Ingersoll-Rand Company Limited 281
Integrated Biometric Technology, see Viisage Technology Incorporated
Integrator.com, see Stanley Works
ISR Solutions Incorporated, see Stanley Works
Jarden Corporation 285
Johnson Controls Incorporated 286
Kidde plc, see United Technologies Corporation
Klein Associates Incorporated, see L-3 Communications Corporation
Lenel Systems International Incorporated, see United Technologies Corporation
L-3 Communications Corporation 289
LQ Corporation Incorporated 293
Lifeline Systems Incorporated, see Royal Philips Electronics NV
Linear LLC, see Nortek Incorporated
LiveWave Incorporated, see Smiths Group plc
Locknetics by Schlage, see Ingersoll-Rand Company Limited
Matsushita Electric Industrial Company Limited 295
MDI Incorporated 298
Motorola Incorporated 301
NAPCO Security Systems Incorporated 302
Nortek Incorporated 305
NOTIFIER, see Honeywell International Incorporated
OMNIKEY GmbH, see ASSA ABLOY AB
Onity Incorporated, see United Technologies Corporation
OSI Systems Incorporated 308
Panasonic Corporation of North America, see Matsushita Electric Industrial Company Limited
Pelco 312
PROTECT Emergency Response Systems Incorporated, see Royal Philips Electronics NV
Rapiscan Systems Incorporated, see OSI Systems Incorporated
Raytheon Commercial Infrared, see L-3 Communications Corporation
Recognition Source LLC, see Ingersoll-Rand Company Limited
Recognition Systems Incorporated, see Ingersoll-Rand Company Limited
Royal Philips Electronics NV 314
SARGENT Manufacturing Company, see ASSA ABLOY AB
SANYO Electric Company Limited 316
Science Applications International Corporation 318
Securaplane Technologies Incorporated, see Danaher Corporation
Securitron Magnalock Corporation, see ASSA ABLOY AB
Security Group Incorporated, see Stanley Works
Security One Systems Incorporated, see Ingersoll-Rand Company Limited
Senior Technologies, see Stanley Works
Sensormatic Electronics, see Tyco International Limited
Sielox LLC, see LQ Corporation Incorporated
Siemens AG 321
Silent Knight, see Honeywell International Incorporated
SimplexGrinnell LP, see Tyco International Limited
Smiths Group plc 326
Software House, see Tyco International Limited
Sony Corporation 328
SPX Corporation 330
Stanley Works 331
System Sensor, see Honeywell International Incorporated
Thermo Electron Corporation 334
3M Company 336
Tyco International Limited 338
United Technologies Corporation 345
VEREX Technology, see United Technologies Corporation
Vicon Industries Incorporated 351
Victory Company of Japan Limited, see Matsushita Electric Industrial Company Limited
Viisage Technology Incorporated 353
Vindicator Technologies Incorporated, see Honeywell International Incorporated
VingCard as, see ASSA ABLOY AB
Other Companies Mentioned in the Study 357

LIST OF TABLES
TABLE NUMBER PAGE
SECTION I -- EXECUTIVE SUMMARY
Summary Table 3

SECTION II -- MARKET ENVIRONMENT
1 Population & Households 8
2 Employment Outlook 11
3 Macroeconomic Environment 15
4 Building Construction Expenditures 17
5 Residential Building Construction Environment 20
6 Nonresidential Building Construction Environment 22
7 Building Stock 26
8 Business Establishments 29
9 Motor Vehicle Park, Production & Sales 32
10 Violent Crime Levels 38
11 Property Crime Levels & Losses 41
12 Terrorism & Other Selected Nonconventional Crime Levels 42
13 Fire Levels & Losses 49
14 World Electronic Security Products & Systems Market 57
15 US Foreign Trade of Electronic Security Products & Systems 59

SECTION III -- TECHNOLOGY
1 Electronic Products Shipments 63
2 Computer Hardware & Software Sales 69

SECTION IV -- PRODUCTS
1 Electronic Security Products & Systems Supply & Demand 83
2 Alarm Systems Supply & Demand 86
3 Intrusion Alarm Demand by Type 88
4 Fire Alarm & Smoke Detector Demand by Type 93
5 Carbon Monoxide Detector Demand 98
6 Personal Emergency Response Service & Related Alarm
Demand 103
7 Electronic Access Control Supply & Demand 106
8 Card-based Access Control Demand by Type 110
9 Keypad/Combination Access Control Demand 112

(continued on next page)

SECTION IV -- PRODUCTS (continued)

10 Biometric Access Control Demand by Type 115
11 Closed-Circuit Television Supply & Demand 119
12 Closed-Circuit Television Camera Demand 122
13 Closed-Circuit Television Monitor Demand 123
14 Closed-Circuit Television Recorder Demand 125
15 Other Closed-Circuit Television Components Demand 126
16 Contraband Detection System Supply & Demand 128
17 Contraband Detection System Demand by Type 129
18 Electronic Article Surveillance System Supply & Demand 140
19 Automotive & Other Electronic Security Product Supply &
Demand 145

SECTION V -- MARKETS

1 Electronic Security System Demand by Market 154
2 Retail Sales Outlook 158
3 Trade & Distribution Electronic Security Market 161
4 Government/Institutional Sector Indicators 164
5 Government/Institutional Sector Electronic Security Market 166
6 Industrial Sector Indicators 172
7 Industrial Electronic Security Market 175
8 Financial Sector Indicators 178
9 Financial Institutions Electronic Security Market 180
10 Air Carrier Outlook 183
11 Air Transport Electronic Security Market 185
12 Office, Lodging & Other Commercial Construction
Expenditures 187
13 Office & Lodging Electronic Security Market 189
14 Services Sector Indicators 192
15 Services Sector Electronic Security Market 194
16 Consumer Spending & Investment Patterns 197
17 Consumer Electronic Security Market 198
18 Residential Electronic Security Market 201
19 Consumer Automotive Electronic Security Market 202

(continued on next page)
SECTION VI -- INDUSTRY STRUCTURE

1 Electronic Security Sales by Company, 2005 206
2 Selected Acquisitions & Divestitures 218
3 Selected Cooperative Agreements 223

LIST OF CHARTS

CHART NUMBER PAGE

SECTION II -- MARKET ENVIRONMENT

1 Year of Construction of Housing Stock, 2005 27
2 US Crime Rates, 1995-2004 36

SECTION IV -- PRODUCTS

1 Electronic Security Product Demand by Type, 2005 83
2 Alarm System Demand by Type, 2005 87
3 Electronic Access Control Demand by Type, 2005 106
4 Closed-Circuit Television Demand by Component, 2005 119
5 Contraband Detection System Demand by Type, 2005 130
6 Electronic Article Surveillance System Demand by Type, 2005 141

SECTION V -- MARKETS

1 Electronic Security System Demand by Market, 2005 154

SECTION VI -- INDUSTRY STRUCTURE

1 Electronic Security Market Share, 2005 208