This Frost & Sullivan research service titled North American Fire Suppression Systems Market provides an overview of the governing market dynamics, revenues, and performance of industry participants, along with a complete analysis of key market drivers, restraints, and trends that are impacting manufacturers within the fire suppression systems industry in North America. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: water-based, gas-based, and special suppression systems.
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Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
Water-based systems
Gas-based systems
Special systems
Technologies
The following technologies are covered in this research:
Water sprinkler systems
Water mist systems
Carbon-dioxide systems
Halocarbon systems
Inert gas systems
Foam systems
Dry/Liquid Chemical systems
Market Overview
New Building Construction and Renovation Projects Continue to Positively Influence Growth in Fire Suppression Systems Market
The North American fire suppression systems market is witnessing significant growth due to increased activity in the construction sector. Both new building construction and retrofits of existing buildings have remained buoyant, mostly driven by code compliance, thus positively impacting revenue growth. "Economic conditions are likely to favor an already upbeat construction market, further driving retrofits," notes the analyst of this research service. "Consequently, capital investments are also expected to result in an increase in renovation projects as businesses opt for improvements."
Moreover, the energy crises and fluctuating fuel prices have considerably shifted the focus toward alternate fuels and fuel additives such as ethanol and alternate energy sources such as bio-diesel and liquefied natural gas (LNG). As the market progresses, these factors will certainly drive the participating market segments catering to these specific requirements.
Diversification Offers an Effective Solution to Breakthrough Increasing Market Concentration
Highly prescriptive building codes and standards have always been a key challenge for market participants to penetrate across segments in this market. In addition, the mature state of the market continues to keep price sensitivity thriving. This has made it particularly difficult for smaller and niche players to maintain their positions in the market. Acquisition and consolidation embodies a high degree of market concentration among a few large companies, while also projecting strong in-built barriers to entry for new participants.
As there are entry barriers in the forms of meeting the requirements of regulatory and statuary bodies, the market has seen some of the existing participants diversify to introduce gelled halocarbon with dry chemical suspension, powdered aerosols and fluorinated ketone as an alternative to traditional means of fire suppression. There have also been visible efforts directed toward focusing on products, which are not likely to become environmental hazards in the near future. "Although water-based suppression systems dominated the market with over 50 percent contribution to revenues in 2006, special systems are likely to gain ground with the growing acceptance of newer fire suppression agents stimulating growth for this segment," explains the analyst. "In addition, fluorinated ketone products such as Novec™ 1230, which are positioned as environment-friendly, are expected to gain more sizable share in the market, although price sensitivity will continue to determine their rate of adoption and penetration."
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