The U.S. electronic security products and systems market is expected to increase 7.8 percent per year to $15.6 billion in 2012. Growth for electronic security systems continues to be driven by a high perceived risk of crime, despite a long-term trend of falling crime rates. Ongoing technological improvements that enhance the accuracy, ease of use and speed of operation of security systems will also bolster spending. The falling prices of many high-end electronic security components have further boosted gains by increasing market penetration across a broadening customer base. These and other trends are presented in Electronic Security Systems, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

Access controls are expected to achieve the strongest growth through 2012 because of technological innovations that allow an increasingly sophisticated array of clearance options that are more difficult to forge and are easier to operate. These systems can also effectively replace guards. Advances in access controls will be led by biometric versions, which will grow exponentially over the next decade. Advances will be driven by the declining costs and improving performance of these systems, and the growing use of biometrics integrated with more conventional access control technologies. Gains will also be spurred by federal government mandates regarding the addition of biometric controls into its systems.

Gains for contraband detection systems will be significantly below those achieved during the massive expansion between 2002 and 2007, much of which took place in airports following the September 11, 2001 attacks. Going forward, gains will continue to stem from technological upgrades that allow for more thorough, more precise and faster screening of baggage and passengers.

Most markets for electronic security systems will register healthy growth. Above average gains are projected in the industrial, offices and lodging, financial institutions and services sectors, due to a combination of cyclical factors and concerns over the adequacy of current security safeguards. In 2007, the government and institutional market accounted for the largest share of electronic security system sales (outside of the consumer market) with 17 percent. However, the industrial market is expected to post the strongest average annual sales growth through 2012.



(million dollars)


% Annual Growth


Item     2002             2007             2012             2002-2007     2007-2012


Electronic Security System Demand

7605             10700 15600 7.1                  7.8

Access Controls

1955            3335            5850             11.3                11.9


2325            2440            3230             1.0                   5.8

Closed-Circuit Television

1095            1315            1760             3.7                   6.0

Contraband Detection

415            950            1325            18.0                6.9

Electronic Article Surveillance

455            565            600            4.4                   1.2

Automotive Security & Other

1360            2095            2835            9.0                   6.2

Electronic Security Systems (published 04/2008, 390 pages) is available for $4,600

from The Freedonia Group, Inc., 767 Beta Drive, Cleveland, OH 44143-2326. For

further details, please contact Corinne Gangloff by phone 440.684.9600, fax

440.646.0484 or e-mail Information may also be obtained through



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