Middle East countries are oil rich countries and in the past few years have significantly diversified their economy to other sectors such as retail, hospitality and others. Growing expat population, tourists, investment in infrastructure, retail and hospitality sector were the key users of electronic security devices. Government and Industry were the major consumers of high end technologically advanced products which are generally sold at higher premium. In 2011 market was estimated at USD ~ million and increased to an estimated at USD ~ million in 2016 registering a five year CAGR of ~%. Rise in demand for facility management, improving government regulations, growing hospitality sector and improved banking/ATM penetration were the key sectors that lead the growth.
Turkey was the largest market for electronic security devices and CCTV was the most demanded electronic security device in the Middle East region. Honeywell, Bosch, Axis Communication are the key companies operating in the Middle East region. Many Chinese companies such as Hikvision and Dahua which are very price competitive have also entered the Middle East market. System integrators and consultants play a very key role in the region as it is mandatory to have the equipments installed by government registered system integrators. Currently, no major company has manufacturing unit and setting up a manufacturing unit in Middle East will help in gaining more market as more products can be developed as per needs of local requirements.
Role Of Consultants And System Integrators
The service consultants for electronic security products provide consulting on sourcing and installation of surveillance systems, access control systems, fire alarm/fire fighting systems, intruder alarm systems, and other security products. The role of security consultant initiates with assessing the security needs of client and presenting the findings (based upon the needs) to the client. The service consultant during this process ensures to maintain quality and service benchmark that has been promised. There are several companies in the domain which provides consulting services to different sectors in electronic security market.
System integrators procure the hardware, software, and provide services to put the equipments together. Many times the consultants and vendors don’t have the required skills of manpower in the region to integrate the new technologies into existing infrastructure which is essential for business’s safety and security. System integrators are key partners to the manufacturing companies and vital training and development facilities are made available by these companies to system integrators as they are the key factor in installation and operation of electronic security devices. Insights and feedback from system integrators serve as major input to focus R&D activities.
Saudi Arabia Electronic Security Market Size
Market for electronic security devices increased from USD ~ million in 2011 to USD ~ million in 2016. Jeddah, Riyadh and the adjoining areas was the most important market for electronic security devices in the country due to huge volume of commercial and real estate development. Other factors promoting growth in demand were Hajj, the annual Islamic pilgrimage to Mecca, increased numbers of people spending their time in malls. The Ministry of Interior in Saudi Arabia made it compulsory for all businesses to have surveillance cameras installed in their premises to protect against theft related crimes. Military and security services comprised ~% of the budget expenditure in 2016 which had risen over the years leading to increased demand for electronic security equipments.
Saudi Arabia Electronic Security Market Segmentation
Market for video surveillance was the highest in Saudi Arabia as it is mandatory by law that all commercial places must install CCTV cameras in their premises. In case of fire alarms, majority of the demand was from industrial sector and commercial real estate sector. Intrusion alert system was majorly governed by demand from residential sector especially expats and individual house owners. Motion sensors (~%), infrared beam sensors (~%) and seismic detectors (~%) were major intrusion alert system used in Saudi Arabia during 2016. Pin based access control dominated the market in 2016 with ~% of revenue coming from such equipments. ~% market share was captured by biometric access control system and ~% card based system. Government and transportation sector accounted for more than ~% of total electronic security equipment sold in Saudi Arabia.
Major Players In Saudi Arabia Electronic Security Market
Honeywell was the leading electronics security provider in Saudi Arabia generating ~ million with ~% market share in electronic security during 2016. Majority of the revenue comes from large institutional contracts from government agencies and large commercial spaces. Bosch was the second largest player with ~% market share generating revenue of USD ~ million. It has wide network of seven distributors in four major cities. Pelco, Axis, Siemens, Avigilon Corporation, Hikvision Digital Technology Co. Ltd. and Samsung Techwin Co Ltd were some other major companies operating in Saudi Arabia electronic security market.
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Ankur Gupta, Head Marketing & Communications