indian security systems market overview excerpts

8/7/2019 Indian Security Systems Market Overview Excerpts

1/6

175 FEDERAL STREET | 14TH FLOOR | BOSTON | MASSACHUSETTS 02110 | TEL. 617.457.7888 | FAX. 617.457.7889

Indian Security Systems Market

Select Excerpts

December 2008

For further information on the Indian Security Market please contact Kimberlee Luce via email [email protected] or by phone at 617-457-7888 ext. 311
mailto:[email protected]:[email protected]


2/6

2Private & Confidential

The security systems market can be segmented into cyber securitysystems and physical security systems

Definition and Segmentation Definition and Types

CyberSecurity

SegmentationBasis

Segments

India Security Market(1)

PhysicalSecurity

Source:

(1) Boston Analytics Analysis.

Systems Services

AlarmSystem

FireDetection

andProtection

SurveillanceAccess

ControlsOthers

Focus of the Study

Produc

tExam


3/6


End-users buy security products at a premium of 30%40% abovemanufacturing costs

0

15

30

45

60

75

90

105

120

135

150

Manufacturer cost Equipment

Manufacturer

margin

System Integrator

margin

Contractors

margin

End User price

13.5%

12.5%

Marginsateach

leve

l(%)

Entities in the Value Chain

For example, a manufacturer spends

INR 100 in the production of security

products The incremental margins for the

channel partners in the value chain are

as follows:Equipment Manufacturer: 13.5% System Integrator: 12.4% Contractors: 6.5%

The retail price to be paid by the end

user is INR 136)

6.5%

Margin Levels of Entities Involved (By Player Type)

12%15% 10%15% 5%8%

INR 100

INR 136

Source:

(1) Boston Analytics primary research

Value Chain Analysis Pricing

Range

Explanation


4/6

The physical security systems market is expected to grow toat least $1.3 B by 2011, growing at a CAGR of 30%

Private & Confidential 4

Indian Security Systems Market (20032011)(A),(B),(1),(2),(3)

Marke

tSiz

e($M)

Security Systems Market(1),(2),(3)

The market will continue to grow at 30%35%

due to a growing awareness and demand for

products from various sectors Among the biggest spenders of installing security

devices are IT/ITES companies, who spend 30%

on their security budgets, followed by commercial

institutions at 20% and hospitality industry at 15% Retail and aviation sectors will be major

contributors of growth In addition, infrastructure projects, such as,

airports, metro railways, etc. are spending

increasing amounts on security equipment

CAGR: 33.8% CAGR: 30%

Source:

(1) Background Research on Indian Electronic Security Market. http://www.valuenotes.biz/research/samplereports.asp(accessed December

10, 2008).

(2) Market Overview of Safety & Security, International Trade Resource Center,http://www.exportnh.org/uploads/safety%20%20seurity%20(2).pdf, (accessed December 9, 2008).

(3) Security solutions sector sees big growth on terror threats, Hindu Business Line,

http://www.thehindubusinessline.com/2008/09/29/stories/2008092951520200.htm(accessed December 9, 2008).

Note:

(A) The market does not include services or products related to the cyber security market.

(B) Future CAGR does not take into account the unknown impact of the recent Mumbai terror attacks (on 26th November 2008)

Market Dynamics Market SizeSecurity Systems Market

Indian security systems market is still at a nascent state compared to developed nations However, it is expected to grow at a faster rate of 30% compared to approximately 10% of developed nations (US and UK) due to a rise in the

crime and terrorism rate, growth in infrastructure, and rising awareness about security products
http://www.valuenotes.biz/research/samplereports.asphttp://www.exportnh.org/uploads/safety%20%20seurity%20(2).pdfhttp://www.thehindubusinessline.com/2008/09/29/stories/2008092951520200.htmhttp://www.thehindubusinessline.com/2008/09/29/stories/2008092951520200.htmhttp://www.exportnh.org/uploads/safety%20%20seurity%20(2).pdfhttp://www.valuenotes.biz/research/samplereports.asp


5/6

The government/public sector dominates the security systemsmarket which is primarily concentrated in the North

Private & Confidential 5

Public

Sector/Government

40%$ 180 M

Industrial 20%

$ 90 M

Offices/Commercial

20%

$ 90 M

Retail 15%

$ 67.5 M

Market Segmentation by End-users (2007)(A),(1),(3)

Market Segmentation by Geography (2007)(2),(3)

The major consumer of security systems is the government

and public sector followed by industrial and commercial

segments The hospitality industry is included as part of the

offices/commercial end user segment

Source:

(1) India Research Findings, IFSEC India.http://www.ifsecindia.com/files/india_research_findings.pdf(accessed October 20, 2007).

(2) Background Research on Indian Electronic Security Market.http://www.valuenotes.biz/research/samplereports.asp(accessed December 10, 2008).(3) The Indian Security Industry market, Security Today Online,http://www.securitytoday.in/PDF/CoverStoryMay07.pdf(accessed December 10, 2008).

North India represents the security systems market followed

closely by South India Western parts of India follow next with eastern parts of the

country having the lowest share in the security market

Residential 5%

$ 22.5 M

100% = $ 450 M

Major markets: Delhi and

NCR Haryana Punjab Western UP NE Rajasthan

Major markets: Mumbai Goa East Gujarat

Major Markets: Hyderabad Bangalore Chennai Coimbatore Mangalore Trivandrum

Major Markets: Kolkata Orissa

Largest Market

2nd Largest Market

3rd

Largest Market

Smallest Market

Note:

(A) Hospitality sector is included in the commercial sector.

Market Dynamics Market SizeMarket Segmentation
http://www.ifsecindia.com/files/india_research_findings.pdfhttp://www.ifsecindia.com/files/india_research_findings.pdfhttp://www.ifsecindia.com/files/india_research_findings.pdfhttp://www.valuenotes.biz/research/samplereports.asphttp://www.valuenotes.biz/research/samplereports.asphttp://www.valuenotes.biz/research/samplereports.asphttp://www.securitytoday.in/PDF/CoverStoryMay07.pdfhttp://www.securitytoday.in/PDF/CoverStoryMay07.pdfhttp://www.securitytoday.in/PDF/CoverStoryMay07.pdfhttp://www.securitytoday.in/PDF/CoverStoryMay07.pdfhttp://www.valuenotes.biz/research/samplereports.asphttp://www.ifsecindia.com/files/india_research_findings.pdf


6/6

For further information on the Indian Security Market or to purchase the entire report with the

Table of Contents listed below, please contact Kimberlee Luce via email at

[email protected] or by phone at 617-457-7888 ext. 311

Table of Contents

Definition and Segmentation

Value Chain Analysis

Market Dynamics

Market Size

Manufacturer Analysis

End-user Analysis

Drivers and Inhibitors

Trends Conclusion

Appendix

mailto:[email protected]:[email protected]

indian security systems market overview excerpts

Documents