The total UK security industry was worth an estimated £7bn at current end-user prices in 2005, having grown by 3.2% on 2004.
Across the review period (2001 to 2005), it increased in value by 27.8%.In this Key Note Market Review, the industry is divided into five markets: manned security services, electronic security systems, physical security equipment, vehicle security and fire-protection equipment.
Manned security services includes manned guarding, cash/valuables handling, police/public security services, and other services, which relate to information security.
Electronic security includes closed-circuit television (CCTV), intruder alarms, access control and other electronic security systems and devices, including integrated systems.
Physical security includes locks, safes and other types of physical barrier, such as shutters and turnstiles.
Vehicle security includes vehicle locks, other mechanical security devices and security marking, vehicle tracking systems, and other electronic devices, such as immobilisers and alarms.
The fire-protection market covers active fire protection, i.e.
detection and alarm systems, and fire-extinguishing equipment and materials.The review period was marked by terrorist incidents, which put the UK on a high level of security alert.
In terms of the security industry, this provides many opportunities but it also has a negative effect on business confidence, which serves to hold back investment in new premises and vehicles.
The fire-protection market and many security product sectors are strongly driven by the output of new building work.
This was at a high level for most of the review period and showed overall growth, although preliminary figures for 2005 suggest there has been a downturn.
Housing and public-sector construction showed the strongest growth over the period.Crime figures show erratic progress, with an increase in violent crime in England and Wales, but there has been a substantial improvement in the level of vehicle crime and a reduction in the number of fires in buildings.
These reductions can be credited to the use of security and fire-protection products, as well as to public safety campaigns and efforts such as improving the security of car parks.In 2006, the manned security industry is preoccupied with the introduction of licences for security guards and some other categories of staff.
The system is suffering some teething troubles, but it is believed that it will lead to better client confidence in manned security services and will enable the companies to achieve better prices.In the electronic security market, there is strong growth in access control, in integrated systems and networked systems covering multiple sites, and in the use of Internet protocol (IP) networks for the remote management and monitoring of systems.
There is a continual high level of product innovation.
Key Note's consumer survey found that CCTV is beginning to penetrate the household sector.The locks sector is mature but is benefiting from growth in housing output and should continue to do so over the next few years.Vehicle security sales appears to have suffered in 2005 because of a drop in the number of new cars produced in the UK and a downturn in new car registrations.
This depression seems likely to continue in 2006.
The market has been adversely affected by high fuel prices and, possibly, by congestion charges as well.In the fire-protection market, there is a high rate of product development but, at the same time, a downward pressure on prices.
Although the market is mature, it is being boosted by new building work and refurbishment, and strict legislation.Key Note forecasts value growth in all markets between 2006 and 2011, but the best-performing markets will be physical security equipment and manned security services.