Security Products Manufacturing
Description
Companies in this industry manufacture electronic security and safety communications equipment such as fire and security alarms, intercoms, and vehicle and pedestrian signaling systems. Major companies include Resideo and divisions of GE Security, and Raytheon Technologies (all based in the US), as well as ASSA ABLOY (Sweden), Nippon Signal (Japan), SWARCO (Austria), and divisions of Johnson Controls (Ireland) and Siemens (Germany).
The global security products manufacturing industry is expected to generate about $60.1 billion by the end of 2024, according to the Security Industry Association. According to the International Data Incorporation (IDC), security investments spending is expected to reach $300 billion by 2026. The US and Western Europe are the largest markets, with the Asia-Pacific market as the fastest spending growth regions.
The US security products manufacturing industry includes about 330 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4 billion. Manufacturers of automatic fire sprinkler systems are not included in the industry.
COMPETITIVE LANDSCAPE
Demand is driven by residential, office, and commercial construction, as well as construction spending for highway, street, and railroad infrastructure. Profitability depends on efficient manufacturing and effective marketing. Large companies compete through advantages in economies of scale and by offering a wide spectrum of products. Small companies can compete by specializing in niche products and through superior customer service. The US industry is highly concentrated: the 50 largest companies account for about 85% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include alarm systems (about 50% of industry revenue) and fire detection and prevention alarm systems (about 30%). Other products include inclusion detection alarm systems and intercommunication systems. Alarm systems include central alarm monitoring equipment, burglar and car alarms, and fire detectors and alarms.
Alarm systems for detecting intruders vary greatly in design and application, but most operate on simple electrical circuits. In such systems, the act of opening a door or opening or breaking a window either completes or breaks an electrical circuit, which triggers the alarm. Motion detectors typically use radar waves, focused light (usually a laser), or passive infrared (PIR) to detect motion. Radar motion detectors sound the alarm when the reflection pattern of the radar wave is disrupted. Focused light detection systems typically aim a light beam at a sensor. The alarm is triggered when an intruder steps between the focused light source and the sensor.
Passive infrared systems can detect the body heat of an intruder and sound the alarm. Alarm systems of varying complexity may use one or many of these various techniques to detect an intrusion. Most security systems are operated through a control box that arms and disarms the system, usually by entering a passcode. Alarms usually feature sirens and flashing lights to warn of intrusion, and some include cameras and telephone auto-dialers that can notify police, the property owner, and/or a security company.
Fire and smoke alarms are primarily for warning building occupants that a fire has been detected. Commercial systems typically feature smoke detectors and manual switches, and may be integrated with burglar/intruder alarms and/or automatic fire sprinkler systems. Residences typically use smoke detectors which may be either battery-powered or hard-wired to the dwelling's electrical system. Hard-wired detectors usually feature a battery back-up in case of power outage.
Traffic and pedestrian signals consist of three basic components: the traffic light signal with housings; supporting poles, arms, or cables; and the electric controller. The controller is typically mounted in a weather-proof box located at or near the intersection. Advanced signals may have electromagnetic sensors buried in the roadway that detect and control traffic flow. Railway signals are similar to traffic signals. However, the railway crossing signal is usually only activated when a train is approaching. This is usually done by electrifying a section of steel track well ahead of the crossing intersection. When the train crosses the electrified portion of track, the train's steel wheels and axle complete a circuit which activates the signal.
Raw materials for fire and burglar alarms include plastics, metals, electronic components, and wiring. Traffic and railway signal raw materials include aluminum, galvanized steel, fiberglass, plastics, electronics, wiring, and steel cable. Traffic controllers also use electronic components such as switches, relays, and timers. Some alarm and traffic signal subassemblies such as control electronics may be purchased from suppliers.
The global security products manufacturing industry is expected to generate about $60.1 billion by the end of 2024, according to the Security Industry Association. According to the International Data Incorporation (IDC), security investments spending is expected to reach $300 billion by 2026. The US and Western Europe are the largest markets, with the Asia-Pacific market as the fastest spending growth regions.
The US security products manufacturing industry includes about 330 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4 billion. Manufacturers of automatic fire sprinkler systems are not included in the industry.
COMPETITIVE LANDSCAPE
Demand is driven by residential, office, and commercial construction, as well as construction spending for highway, street, and railroad infrastructure. Profitability depends on efficient manufacturing and effective marketing. Large companies compete through advantages in economies of scale and by offering a wide spectrum of products. Small companies can compete by specializing in niche products and through superior customer service. The US industry is highly concentrated: the 50 largest companies account for about 85% of industry revenue.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products include alarm systems (about 50% of industry revenue) and fire detection and prevention alarm systems (about 30%). Other products include inclusion detection alarm systems and intercommunication systems. Alarm systems include central alarm monitoring equipment, burglar and car alarms, and fire detectors and alarms.
Alarm systems for detecting intruders vary greatly in design and application, but most operate on simple electrical circuits. In such systems, the act of opening a door or opening or breaking a window either completes or breaks an electrical circuit, which triggers the alarm. Motion detectors typically use radar waves, focused light (usually a laser), or passive infrared (PIR) to detect motion. Radar motion detectors sound the alarm when the reflection pattern of the radar wave is disrupted. Focused light detection systems typically aim a light beam at a sensor. The alarm is triggered when an intruder steps between the focused light source and the sensor.
Passive infrared systems can detect the body heat of an intruder and sound the alarm. Alarm systems of varying complexity may use one or many of these various techniques to detect an intrusion. Most security systems are operated through a control box that arms and disarms the system, usually by entering a passcode. Alarms usually feature sirens and flashing lights to warn of intrusion, and some include cameras and telephone auto-dialers that can notify police, the property owner, and/or a security company.
Fire and smoke alarms are primarily for warning building occupants that a fire has been detected. Commercial systems typically feature smoke detectors and manual switches, and may be integrated with burglar/intruder alarms and/or automatic fire sprinkler systems. Residences typically use smoke detectors which may be either battery-powered or hard-wired to the dwelling's electrical system. Hard-wired detectors usually feature a battery back-up in case of power outage.
Traffic and pedestrian signals consist of three basic components: the traffic light signal with housings; supporting poles, arms, or cables; and the electric controller. The controller is typically mounted in a weather-proof box located at or near the intersection. Advanced signals may have electromagnetic sensors buried in the roadway that detect and control traffic flow. Railway signals are similar to traffic signals. However, the railway crossing signal is usually only activated when a train is approaching. This is usually done by electrifying a section of steel track well ahead of the crossing intersection. When the train crosses the electrified portion of track, the train's steel wheels and axle complete a circuit which activates the signal.
Raw materials for fire and burglar alarms include plastics, metals, electronic components, and wiring. Traffic and railway signal raw materials include aluminum, galvanized steel, fiberglass, plastics, electronics, wiring, and steel cable. Traffic controllers also use electronic components such as switches, relays, and timers. Some alarm and traffic signal subassemblies such as control electronics may be purchased from suppliers.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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