A strong global economy and a recovery in the construction industry will create demand for security products, according to a study by the Freedonia Group. Inc., a Cleveland-based industrial market research firm.
Higher-end electronic systems like closed-circuit television, access controls, and contraband detection devices will post the largest gain due to fewer penetrated markets, rapid new product development, and dropping prices.
The fastest growth is anticipated in the world’s developing regions — Asia, Latin America, Eastern Europe, Africa and the Mideast. These areas feature largely unpenetrated private security markets and are characterized by rising crime rates, expanding economies, new business formation activity, heightened foreign investment, emerging middle and upper classes, and privatization of formerly state-owned industries like banking and air travel. China in particular offers tremendous potential; while currently accounting for less than four percent of global demand, its market will more than double by 2008, among the fastest rate of growth in the world.