Security Industry Market Review 2006

Executive Summary

1. Industry Overview

REPORT COVERAGE

REPORT BACKGROUND

ECONOMIC TRENDS

Population

Table 1.1: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005

Gross Domestic Product

Table 1.2: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005

Inflation

Table 1.3: UK Rate of Inflation (%), 2001-2005

Unemployment

Table 1.4: Actual Number of Unemployed Persons in the UK (million), 2001-2005

Household Disposable Income

Table 1.5: UK Household Disposable Income Per Capita (£), 2001-2005

MARKET SIZE

Table 1.6: The UK Security Industry at Current End-User Prices (£m), 2001-2005

MARKET SEGMENTATION

Manned Security Services

Electronic Security Systems

Physical Security Equipment

Vehicle Security

Fire-Protection Equipment

INDUSTRY STRUCTURE

Concentration

Number of UK Businesses

Employment

Distribution

MARKET POSITION

KEY TRENDS

LEGISLATION

Regulation of the Manned Security Market

Police Reform Act

Regulatory Reform (Fire Safety) Order

Building Regulations

Electromagnetic Compatibility Directive

WEEE Directive

RoHS Directive

Disability Discrimination Act

Standards

KEY TRADE ASSOCIATIONS AND INDUSTRY ORGANISATIONS

Association of Police and Public Security Suppliers

BRE Certification

British Fire Protection Systems Association

British Security Industry Association

National Security Inspectorate

Security Industry Authority

Security Systems and Alarms Inspection Board

2. PEST Analysis

INTRODUCTION

POLITICAL

The Terrorist Threat

Airport Security

Regulation of the Security Industry

The Expanded EU

Congestion Charging

Minimum Wage Legislation

The Working Time Directive

Outsourcing of Police and Public-Sector Security Work

Public-Sector Campaigns

Transport Policy

Alarm-Response Policies

Data Protection

ECONOMIC

Business Investment

Table 2.1: Business Investment by Industry — Chained Volume Measures (£m), 2002-2005

Tourism

Construction Output

Table 2.2: Construction Output in Great Britain by Type of Work at Constant 2000 Prices (£m), 2001-2005

The Influence of Insurance Companies

SOCIAL

The Crime Level

Table 2.3: Number of Notifiable Criminal Offences Recorded by the Police in England and Wales (000), Years Ending March 2001-2005

Table 2.4: Number of Notifiable Criminal Offences Recorded by the Police in Scotland (000), 2001-2005

Retail Crime

Table 2.5: Cost of Crime to Retailers (£bn), 2000-2004

Fire Statistics

Table 2.6: Number of Fires Attended by Fire Brigades and Number of Fires in Buildings in the UK (000), 2000-2004

Ageing Population

Public Attitudes to Privacy and Protection

Visual Impact of Security Products

TECHNOLOGICAL

Internet Protocol Data Transmission

Product Development

3. Key Note Primary Research

INTRODUCTION

OWNERSHIP OF hOME-SECURITY AND FIRE-PROTECTION PRODUCTS

Table 3.1: Ownership of Home-Security and Fire-Protection Devices (% of adults), 2000, 2002, 2004 and 2006

Smoke Alarm

Table 3.2: Ownership of a Smoke Alarm by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Security Locks on Windows

Table 3.3: Ownership of Security Locks on Windows by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Mortise Lock/Deadlock on Front Door

Table 3.4: Ownership of a Mortise Lock/Deadlock on the Front Door by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006 Outside Security Lights

Table 3.5: Ownership of Outside Security Lights by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Front-Door Chain

Table 3.6: Ownership of a Front-Door Chains by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Professionally Installed Burglar Alarm

Table 3.7: Ownership of a Professionally Installed Burglar Alarm by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006 Time/Light-Sensitive Indoor Lights

Table 3.8: Ownership of Time/Light-Sensitive Indoor Lights by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Fire Extinguisher

Table 3.9: Ownership of a Fire Extinguisher by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Personal Alarm

Table 3.10: Ownership of a Personal Alarm by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Fire Blanket

Table 3.11: Ownership of a Fire Blanket by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

CCTV

Table 3.12: Ownership of CCTV by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

PURCHASING OF hOME/CAR-SECURITY AND FIRE-PROTECTION PRODUCTS

Table 3.13: Home/Car-Security and Fire-Protection Products Bought in the Last 12 Months (% of adults), November 2000, August 2002, March 2004 and May 2006

Smoke Alarm

Table 3.14: Purchasers of a Smoke Alarm in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Door Locks

Table 3.15: Purchasers of Door Locks in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Padlocks

Table 3.16: Purchasers of Padlocks in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Window Locks

Table 3.17: Purchasers of Window Locks in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Car Alarm

Table 3.18: Purchasers of a Car Alarm in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Vehicle Locks

Table 3.19: Purchasers of Vehicle Locks in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Fire Extinguisher

Table 3.20: Purchasers of a Fire Extinguisher in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Electrical Car Immobiliser

Table 3.21: Purchasers of an Electrical Car Immobiliser in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Professionally Fitted Burglar Alarm

Table 3.22: Purchasers of a Professionally Fitted Burglar Alarm in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

Personal Alarm

Table 3.23: Purchasers of a Personal Alarm in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006 Mechanical Car Immobiliser

Table 3.24: Purchasers of a Mechanical Car Immobiliser in the Last 12 Months by Sex, Age, Social Grade, Region and Housing Tenure (% of adults), 2006

CCTV

4. Competitive Structure

THE MARKETPLACE

MARKET LEADERS

Table 4.1: Selected Leading Competitors in the UK Security Industry by UK and Global Turnover (£m), 2004/2006

Group 4 Securicor PLC

Company Structure

Financial Results

Tyco Fire & Security

Company Structure

Financial Results

Securitas AB

Company Structure

Financial Results

Chubb UK

Company Structure

Financial Results

Reliance Security Group PLC

Company Structure

Financial Results

Rentokil Initial PLC

Company Structure

Financial Results

Assa Abloy AB

Company Structure

Financial Results

Kidde Ltd

Company Structure

Financial Results

OUTSIDE SUPPLIERS

Metals

Electrical and Electronic Components

Cabling

Computer Software

Hardware Components

Control Room Furniture and Storage

Training

MARKETING ACTIVITY

Main Media Advertising Expenditure

Exhibitions and Conferences

5. Manned Security Services

DEFINITION

Manned Guarding

Cash/Valuables Handling

Police/Public Security Services

Other Services

KEY TRENDS

Licensing

MARKET SIZE

Market Value

Table 5.1: The UK Market for Manned Security Services by Sector at Current End-User Prices (£m and %), 2001-2005

Market Segmentation

Manned Guarding

Cash/Valuables Handling

Police/Public Security Services

Other Services

SUPPLY STRUCTURE

Number of Companies

Employment

Table 5.2: Estimated Number of Employees in the Manned Security Services Market, 2001-2005

Distribution

Trade Associations and Industry Organisations

British Security Industry Association

National Security Inspectorate

Security Systems and Alarms Inspection Board

MAJOR PLAYERS

Brinks (UK) Ltd

Cash Logistics & Security (Post Office Ltd)

Chubb Security Personnel Ltd

First Security (Guards) Ltd

Global Solutions Ltd

Group 4 Securicor PLC

Legion Group PLC

MITIE Security Ltd

OCS Group UK Ltd

Pegasus Security Group Ltd

Reliance Security Group PLC

Securiplan PLC

Securitas AB

Market Shares

Manned Guarding

Table 5.3: Estimated Competitors' Shares in the UK Manned Guarding Sector by Value (%), 2005

Cash/Valuables Handling

Table 5.4: Estimated Competitors' Shares in the UK Cash/Valuables Handling Sector by Value (%), 2005

Police and Public Security

ADVERTISING AND Promotion

BUYING BEHAVIOUR

Airports

Banks and Building Societies

Special Events

Retailing

FORECASTS 2006 TO 2011

Table 5.5: The Forecast UK Market for Manned Security Services by Sector at Current End-User Prices (£m), 2006-2011

6. Electronic Security Systems

DEFINITION

Closed-Circuit Television

Cameras

Lenses

Ancillary Equipment

Recorders

Monitor Screens

Multiplexers

Telemetry Controllers and Receivers

Cabling

Printers

Lighting

Intruder Alarms

Access Control

Entryphones and Video Entryphones

Keypads

Card Systems

Proximity Systems

Long-Range/Hands-Free Systems

Systems to Control Vehicle Access

Biometric Systems

Other Electronic Security Systems and Devices

Electronic Article Surveillance

Radio Frequency

Acoustomagnetic

Electromagnetic

Other Products

KEY TRENDS

Drivers of Growth

Costs and Pricing

Foreign Competition

Electronic vs Manned Security

Demand Trends

Growth Opportunities

Technological Develoments

MARKET SIZE

Market Value

Table 6.1: The UK Market for Electronic Security Systems by Sector at Current End-User Prices (£m and %), 2001-2005

Table 6.2: Apparent UK Market for Burglar and Fire Alarms (£m at msp), 2001-2005

Number of Installations

Table 6.3: Number of Installations by NSI-Approved Installers by Type of Security System, 2001-2005

Table 6.4: Breakdown of NSI Installations of Intruder Alarm Systems by Type (%), 2001-2005

Foreign Trade

Table 6.5: UK Balance of Trade in Burglar and Fire Alarms for Use Within Buildings (£m), 2001-2005

SUPPLY STRUCTURE

Number of Companies

Employment

Table 6.6: Estimated Number of Employees in the Electronic Security Systems Market, 2001-2005

Distribution

Trade Associations and Industry Organisations

Euralarm

International Association for Biometrics

MAJOR PLAYERS

Closed-Circuit Television

Baxall Holdings Ltd

Dedicated Microcomputers Group Ltd

Honeywell Video Systems UK Ltd

JVC Professional Europe Ltd

Intruder Alarms

Cooper Security Ltd

Yale UK Ltd

Access Control

Assa Abloy AB

Bewator Ltd

CEM Systems

Group 4 Technology Ltd

Kaba (UK) Ltd

Newmark Security PLC

Stanley Security Solutions — Europe Ltd

Other Electronic Security Systems and Devices

Checkpoint Systems Inc

Todd Research Ltd

Tunstall Group Ltd

Tyco International Ltd

Installers of Electronic Security Systems

ADT Fire and Security PLC

Chubb Electronic Security Ltd

Initial Electronic Security Systems Ltd

Securitas Security Systems Ltd

Siemens Building Technologies Security Solutions Ltd

Secom PLC

ADVERTISING AND PROMOTION

Table 6.7: Main Media Advertising Expenditure on Household Security Products and Industrial Security Systems (£000), Years Ending March 2005 and 2006

BUYING BEHAVIOUR

Households

Table 6.8: Ownership and Purchasing of a Professionally Installed Burglar Alarm (% of adults), 2000, 2002, 2004 and 2006

Retailers

Banks and Building Societies

Public Sector

Hospitals

Schools

Universities

Town-Centre Surveillance

Transport

Prisons

FORECASTS 2006 TO 2011

Table 6.9: The Forecast UK Market for Electronic Security Systems by Sector at Current End-User Prices (£m), 2006-2011

7. Physical Security Equipment

DEFINITION

Locks

Safes

Other Physical Security Products

KEY TRENDS

New Building Output

Table 7.1: Number of Housing Starts and Completions in the UK, Years Ending March 2001-2005

Property Transactions

Table 7.2: Number of Property Transactions in England, Wales and Northern Ireland (000), Years Ending March 2002-2006

MARKET SIZE

Market Value

Table 7.3: The UK Market for Physical Security Equipment by Sector at Current End-User Prices (£m and %), 2001-2005

Market Segmentation

Locks

Table 7.4: The Apparent UK Market for Locks by Type by Value (£m at msp), 2001-2005

Safes

Table 7.5: The Apparent UK Market for Safes and Similar Products by Type by Value (£m at msp), 2001-2005

Other Physical Security Products

Foreign Trade

Table 7.6: UK Balance of Trade in Locks by Value (£m), 2001-2005

Table 7.7: UK Balance of Trade in Safes and Similar Products† by Value (£m), 2001-2005

SUPPLY STRUCTURE

Number of Companies

Employment

Distribution

Trade Associations and Industry Organisations

British Security Industry Association

Master Locksmiths Association

MAJOR PLAYERS

Locks

Assa Abloy AB

Banhams Patent Locks Ltd

ERA Products Ltd

Kaba Group

Lowe and Fletcher Ltd

Henry Squire & Sons Ltd

Safes

Gunnebo Industrier AB

SMP Security Ltd

Other Physical Security Products

ADVERTISING AND Promotion

Exhibitions

BUYING BEHAVIOUR

Residential

Commercial

Public Sector

Safes

FORECASTS 2006 TO 2011

Table 7.8: The Forecast UK Market for Physical Security Equipment by Sector at Current End-User Prices (£m), 2006-2011

8. Vehicle Security

DEFINITION

Locks

Other Mechanical Devices

Tracking Systems

Other Electronic Devices

KEY TRENDS

Vehicle Production and Registrations

Table 8.1: Number of Passenger Cars and Commercial Vehicles Produced in Great Britain (000), 2001-2005

Table 8.2: Number of New Vehicle Registrations and Total Number of Vehicles Licensed in Great Britain (000), 2001-2005

Vehicle Crime Levels and Costs

Table 8.3: Incidence of Motor Vehicle Theft in England and Wales by Type (000 offences), Years Ending March 2001-2005

Table 8.4: Incidence of Motor Vehicle Crime in Scotland (000 offences), 2001-2005

MARKET SIZE

Market Value

Table 8.5: The UK Market for Vehicle Security at Current End-User Prices (£m and %), 2001-2005

Table 8.6: The UK Market for Vehicle Security by Sector at Current Manufacturers' Prices (£m at msp and %), 2001-2005

Foreign Trade

Table 8.7: UK Balance of Trade in Motor Vehicle Locks by Value (£m), 2001-2005

Table 8.8: UK Balance of Trade in Vehicle Alarms by Value (£m), 2001-2005

SUPPLY STRUCTURE

Number of Companies

Employment

Distribution

Trade Associations and Industry Organisations

Electronic Vehicle Security Association

Mobile Electronics and Security Federation

Motor Insurance Repair Research Centre

Sold Secure

MAJOR PLAYERS

Autolok Security Products Ltd

CE Marshall Ltd

Directed Electronics Inc

HUF UK Ltd

Retainagroup Ltd

TG21 PLC

Tracker Network (UK) Ltd

Trackstar Ltd

Weston Body Hardware Ltd

ADVERTISING AND PROMOTION

Table 8.9: Main Media Advertising Expenditure on Motor Security Equipment (£000), Years Ending March 2005 and 2006

Exhibitions

BUYING BEHAVIOUR

The New-Vehicle Market

The Aftermarket

FORECASTS 2006 TO 2011

Table 8.10: The Forecast UK Market for the Vehicle Security at Current End-User Prices (£m), 2006-2011

Table 8.11: The Forecast UK Market for Vehicle Security by Sector at Maufacturers' Prices (£m at msp), 2006-2011

9. Fire-Protection Equipment

DEFINITION

Detection and Alarm Systems

Fire-Extinguishing Equipment and Materials

KEY TRENDS

Growth Factors

Incidence of Fires and Fire Casualties

Table 9.1: Number of Fatal and Non-Fatal Casualties from Fires in the UK, 2000-2004

Table 9.2: Fires Within Buildings by Type of Premises (000), 2004

Fires Started Deliberately

Effect of Fire Detectors

Table 9.3: Effect of Fire Detectors on the Death Rate for Fires in Buildings in the UK, 2004

Failure of Fire Alarms

Table 9.4: Reasons Why Fire Alarms Did Not Operate (%), 2000-2004

MARKET SIZE

Market Value

Table 9.5: The UK Market for Fire-Protection Equipment by Sector at Current End-User Prices (£m and %), 2001-2005

Foreign Trade

Table 9.6: UK Balance of Trade in Charged and Uncharged Fire Extinguishers by Value (£m), 2001-2005

Table 9.7: UK Balance of Trade in Fire-Extinguishing Preparations and Charges and Charged Extinguishing Grenades by Value (£m), 2001-2005

SUPPLY STRUCTURE

Number of Companies

Employment

Distribution

Trade Associations and Industry Organisations

British Approval for Fire Equipment

British Automatic Fire Sprinkler Association

British Fire Protection Systems Association

The Chief Fire Officers Association

Euralarm

Eurofeu

Fire and Rescue Suppliers Association

Fire Extinguishing Trades Association

Fire Protection Association

National Security Inspectorate

Fire Sprinkler Association

Security Systems and Alarms Inspection Board

MAJOR PLAYERS

Apollo Fire Detectors Ltd

Chubb Fire Ltd

Cooper Security Ltd

Gent by Honeywell Ltd

Kidde Ltd

London Security PLC

Protec Fire Detection PLC

Siemens Building Technologies Ltd Fire Safety

Tyco Fire & Security

ADVERTISING AND Promotion

Table 9.8: Main Media Advertising Expenditure on Fire Protection (£000), Years Ending March 2005 and 2006

BUYING BEHAVIOUR

Households

Table 9.9: Ownership of Fire-Protection Devices (% of adults), 2000, 2002, 2004 and 2006

Table 9.10: Fire-Protection Products Bought in the Last 12 Months (% of adults), November 2000, August 2002, March 2004 and May 2006

Non-Residential

FORECASTS 2006 TO 2011

Table 9.11: The Forecast UK Market for Fire-Protection Equipment at Current End-User Prices (£m), 2006-2011

10. A Global Perspective

THE TOTAL MARKET

MANNED SECURITY SERVICES

ELECTRONIC SECURITY SYSTEMS

Closed-Circuit Television

Access Control

PHYSICAL SECURITY EQUIPMENT

VEHICLE SECURITY

FIRE-PROTECTION EQUIPMENT

11. The Future

INTRODUCTION

The Economy

Population

Table 11.1: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010

Gross Domestic Product

Table 11.2: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010

Inflation

Table 11.3: Forecast UK Rate of Inflation (%), 2006-2010

Unemployment

Table 11.4: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010

Construction

Car Production and Sales

Major Projects

FORECASTS 2006 TO 2011

Table 11.5: The Forecast UK Security Industry by Market at Current End-User Prices (£m), 2006-2011

FUTURE TRENDS

12. Consumer Confidence

METHODOLOGY

KEY FINDINGS THIS QUARTER

THE WILLINGNESS TO BORROW

Confidence Declines Again

Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006

Signs That the Decline Could be Bottoming Out

Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), May 2005, August 2005, November 2005, February 2006 and May 2006

THE WILLINGNESS TO SPEND FROM SAVINGS

Sharp Decline in Spending from Savings

Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006

Table D: The Proportion of Adults Without Any Savings (%), May 2005, August 2005, November 2005, February 2006 and May 2006

Borrowing Grows in Relative Importance

Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005, August 2005, November 2005, February 2006 and May 2006

13. Further Sources

Associations

Publications

General Sources

Government Sources

Bisnode Sources