8 June 1998
Date: Mon, 8 Jun 1998 17:53:53 -0700 (PDT) Subject: Security Services Market Structure in Upheaval To: jy@jya.com From: nobody@shinobi.alias.net (Anonymous) Monday June 8, 8:04 am Eastern Time Company Press Release SOURCE: Frost & Sullivan Frost & Sullivan: Security Services Market Structure in Upheaval as New Competitors Vie for Market Share MOUNTAIN VIEW, Calif. June 8 /PRNewswire/ -- With the recent entry of new competitors to the U.S. security services market, the most critical issue for market participants concerns the evolving market structure. Related industries are converging, and a new breed of leaders are emerging, more of them from non-security backgrounds. This has resulted in blurring definitions, which makes tracking the market a bit more tricky. According to strategic research conducted by Frost & Sullivan (www.frost.com), U.S. Security Services Market, the total market is expected to grow at a rate of 6.4 percent over the forecast period 1998 to 2004. The increasing demand, low market penetration and strong potential for upgrade markets all contribute to the security services market's strong growth. Contributing also to the growth are opportunities in systems integration, and in access control. The growing concern about such security risks as work violence, industrial espionage and employee theft, push so many companies to evaluate the addition of access control systems as part of their security web. Other developments in the industry include new concepts such as home automation, intelligent buildings and service bundling. Security service companies today have wider service offerings, including the capability to provide home automation systems -- a move which may be interpreted as the security industry's step to seize back opportunities lost from home automation specialists performing security services. Meanwhile, service bundling is still a developing market, so one company offering all services is still quite premature. To test the viability of the basic concept of service bundling, however, many security service companies are opting instead for partnerships where other service companies, such as electricity and telephone companies, come together to provide a menu of services, says Rose Caparas, Frost & Sullivan security research analyst. New technologies driving market growth are CCTV and the wireless technology. End users are integrating CCTV in their security systems to increase security detail within a specific area and provide a real-time monitoring of the goings on in a specified area. Biometrics, smart cards voice transmissions, and asset tracking systems are also expected to impact the security service market over the next decade. The entry of large utility and telecom companies poses a serious challenge to the security service industry. In what is seen as an attempt to jockey for position, these deregulated industries bring new marketing concepts not traditionally embraced in the security service market. For instance, service bundling is a possible marketing tool which could give an advantage to the deregulated industries. In addition, pricing is a real concern for security service market participants. The bargaining power of new market leaders from the deregulated industries may change the stakes, and it is uncertain whether they will help increase prices, or bring down prices as a marketing strategy to keep customers. Frost & Sullivan has divided this study, U.S. Security Services Market, into two separate chapters: Residential and non-residential security services. The report is designed to provide an overview of the market structure by highlighting market trends, revenue forecasts, market shares, competitive issues and strategies. This security industry research has integrated the Market Engineering consulting philosophy into the entire research process. Critical phases of this research include: Identification of industry challenges, market engineering measurements, strategic recommendations, planning and market monitoring. All of the vital elements of this system help market participants navigate successfully through the U.S. security service market. The companies participating in this market include: ADT Security Services, Inc., Advanced Security Protection, Inc., AFA Protective Systems, Inc., Alarm Detection Systems Inc., Alarmco Inc., Alarmguard Inc., Alert Alarm Co. Inc., Alert Holdings Group Inc., All Guard Alarm Systems Inc., American Alarm & Communications Inc., American Alarm Systems Inc., American Home Security (BHC Trust), American Security, Ameritech SecurityLink, Argus Security Systems Inc., Associated Security Corp., Atlas Security Service, Baltimore Alarm & Security, Bay Alarm Company, Brink's Home Security, Brown's Security Systems, Care Alarm Systems, Central Control Alarm Corp., Central District Alarm Inc., Central One, Checkpoint Ltd., Comsec/Narragansett Security Inc., Crime Detector Inc., Crime Prevention Inc., Custom Security Systems, Day Detectives, Dallas Burglar Alarm Company, Dallas Security Systems Inc./DSS Fire, DGA Security Systems, Inc., Digital Detection Systems Ltd., Doyle Security Systems, Engineered Fire Systems Inc., Engineered Protection Systems Inc., Entergy Security, Inc., Fail-Safe Security Systems, Federal Alarm Systems, Inc., Fire Alarm Service Corp./E.P. Reid Inc., General Security, George Alarm Company, Inc., Greater Alarm Company, Inc., Guardian Alarm Company, Guardian International Inc. [OTC BB:GIIS - news], Guardian Protection Services, Inc., Holmes Protection Group Inc., HHomesafe Security System, Honeywell Inc. (NYSE:HON - news; Home and Building Control), Integrated Protection System Inc., Inter-Active Services Inc., Masada Security Inc., Midnight Burglar Alarm Systems, Inc., Mountain Alarm, Multimedia Security Services, Mutual Central Alarm Services Inc., Pacific Alarm Systems Inc., Peak Alarm Company Inc., Pelletier Alarm Services, Per Mar Security Services, Post Alarm Systems, Inc., Professional Security & Sound, Protection One Inc. [Nasdaq:ALRM - news], Protection Service Industries, Protective Alarms Inc., Ranger American of Texas, Response USA Inc. [Nasdaq:RSPN - news], Richmond Alarm Company, Robinson Alarm Co., Rollins Protective Services, Inc., Safeguard Security Services Inc., Safe Systems, SDA Security Systems Inc., Security Corp., Security Equipment Inc., Security of Los Angeles Inc., Security Sure Alarm Company, Security Systems Inc., Sentry Detection Inc., Sentry Protective Systems, Smith Alarm Systems, Sonitrol Security Systems of Hartford , Sonitrol of Sacramento, Sonitrol of Santa Clara , Sonitrol Security Services Inc., Superior Alarms, Supreme Security Systems, Inc., Sylvester's Security Alarms Inc., Time Warner Security, US Alarm Systems Inc., Vector Security, Vivitar Security Systems Inc., Washington Alarm, Inc., Wells Fargo Alarm Services, Inc., Westar Security Services, Westec Security, Inc., World Wide Security, Wyandotte Alarm Co., Industry Associations: American Insurance Services Group Inc., American National Standards Institute (ANSI), American Society for Industrial Security (ASIS), Association of Public-Safety Communications Officials - International (APCO), Automatic Fire Alarm Association, Factory Mutual Research Corp. (FMRC), International Association of Chiefs of Police (IACP), International Association of Fire Chiefs (IAFC), National Association of Fire Equipment Distributors, National Burglar & Fire Alarm Association (NBFAA), National Electrical Manufacturers Association, National Fire Protection Association (NFPA), National Sheriffs Association, Security Industry Association (SIA), Underwriters Laboratories Inc. (UL). Frost & Sullivan is an international marketing consulting company that monitors the security industry for market trends, market measurements and strategies. This ongoing research is utilized to update a series of research publications such as #5711-11 Radio Frequency Identification Equipment, #5519-11 U.S. Physical Security Equipment Market, and #5716-11 World Markets for Smart Card and Magnetic Stripe Readers, and to support industry participants with customized consulting needs. Visit Frost & Sullivan's web site @: http://www.frost.com Report: 5697-11 Publication Date: June 1998 Price: $2950 Copyright 1998 PRNewswire. All rights reserved.