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Security Applications and Wireless M2M is the third consecutive report from Berg Insight analysing the latest developments among the key applications for wireless M2M communication in the security industry.
This report in the M2M Research Series provides you with 120 pages of unique business intelligence including 5-year industry forecasts and expert commentary on which to base your business decisions.
This report will allow you to:
> Identify key players on the European security market. > Learn about the latest propositions from leading security application vendors. > Understand the opportunities and challenges for stolen vehicle tracking services. > Anticipate future drivers for increasing penetration and replacement sales for alarm systems. > Realize the commercial potential of emerging segments including leisure vehicle and boat tracking. > Predict future trends in lone worker protection services.
This report answers the following questions:
> What are the latest trends on the market for connected security applications in Europe?
The private security sector is a global industry comprising services and solutions such as manned guarding, alarm system integration and monitoring, cash and valuables handling as well as various services like consulting and private investigations. The global market value of the security industry grew to an estimated 110 billion in 2009. The more mature European and North American markets still dominate the industry with a combined market share of close to 70 percent. In 2009, the European market value declined slightly to about 45 billion. The long-term annual growth rate is estimated to between 7 and 9 percent globally, and between 6 and 8 percent in Europe and the US. Historically, annual growth has exceeded GDP by a few percentage points each year.
Alarm systems and vehicle tracking systems for passenger cars and commercial vehicles are the key applications for wireless M2M communication in the security industry. Alarm systems are off-the-shelf security systems for small businesses and private homes. These are divided into two main categories local alarms and monitored alarms. The simplest type of local alarm only reacts to activation by ringing bells to alert the surroundings and scare off intruders. Monitored alarms are connected to an alarm receiving centre (ARC).
Around 20 percent of the alarm systems in Europe are monitored by an ARC. Monitored alarm systems are dependent on reliable communication networks. There is a significant untapped potential in the residential market segment that can be fulfilled with the latest generation of monitored alarm systems with GSM/GPRS or dual signalling technology.
Vehicle tracking and recovery is the second major application area for wireless M2M communication in the security industry. Devices combining GPS and GSM/GPRS technologies enable monitoring services for any mobile object. Passenger cars and commercial vehicles constitute the main target markets by virtue of numbers and individual value, but there are also many niche markets such as construction equipment and plant machinery as well as leisure vehicles and boats. Similar hardware designs also constitute the on-board platform for fleet management solutions and the tracking capabilities of these systems enable basic security applications.
What distinguishes vehicle tracking and recovery system from fleet man age ment systems is the monitoring and response service of the secure monitoring centre that is linked to GPS-aided security systems.
Today, only a handful car OEMs offer telematics solutions in a few markets in the EU. Berg Insight anticipates that additional brands will launch OEM telematics solutions on the European market in response to the eCall intiative within the EU. The European Commission has a strong commitment to introducing eCall as a standard feature in all new cars and recently set 2014 as the new target date for realising this vision through regulations if necessary. Vehicle tracking and recovery is likely to become a key component for many OEM telematics systems in the next few years, especially for premium cars.
Several niche applications for wireless M2M are emerging in the security industry that have not yet reached substantial volumes.
Personal security for lone workers is an application area offering significant growth opportunities in the medium and long term.
Wearable integrated tracking and wireless communication devices can be used for protecting individuals. This area is mainly driven by stringent employee health and safety regulations in the UK, but other countries can also be expected to introduce similar laws in the future. Moreover, various forms of electronic monitoring of offenders are gradually being rolled out across Europe to reduce costs of running prisons and assist in the rehabilitation process.
Berg Insight forecasts that shipments of wireless M2M modules for security applications in EU27+2 will grow from 2.3 million in 2009 to nearly 22 million by 2014. At the same time, the number of alarm systems and tracking devices monitored from an alarm receiving centre and similar will grow from about 10 million in 2009 to 34 million by the end of 2014.
> What is the potential market size for wireless M2M communication in the security industry? > Which are the key applications that generate most benefits for the end customers? > Why are leading alarm system providers investing in wireless technology? > When will wireless connectivity become a standard feature in alarm systems? > Who are the leading providers of aftermarket vehicle tracking solutions? > What new applications for wireless M2M are emerging in the security industry? > Are regular handsets suitable for lone worker protection services?
Executive summary
The private security sector is a global industry comprising services and solutions such as manned guarding, alarm system integration and monitoring, cash and valuables handling as well as various services like consulting and private investigations. The global market value of the security industry grew to an estimated 110 billion in 2009. The more mature European and North American markets still dominate the industry with a combined market share of close to 70 percent. In 2009, the European market value declined slightly to about 45 billion. The long-term annual growth rate is estimated to between 7 and 9 percent globally, and between 6 and 8 percent in Europe and the US. Historically, annual growth has exceeded GDP by a few percentage points each year.
Alarm systems and vehicle tracking systems for passenger cars and commercial vehicles are the key applications for wireless M2M communication in the security industry. Alarm systems are off-the-shelf security systems for small businesses and private homes. These are divided into two main categories local alarms and monitored alarms. The simplest type of local alarm only reacts to activation by ringing bells to alert the surroundings and scare off intruders. Monitored alarms are connected to an alarm receiving centre (ARC). Around 20 percent of the alarm systems in Europe are monitored by an ARC. Monitored alarm systems are dependent on reliable communication networks. There is a significant untapped potential in the residential market segment that can be fulfilled with the latest generation of monitored alarm systems with GSM/GPRS or dual signalling technology.
Vehicle tracking and recovery is the second major application area for wireless M2M communication in the security industry. Devices combining GPS and GSM/GPRS technologies enable monitoring services for any mobile object. Passenger cars and commercial vehicles constitute the main target markets by virtue of numbers and individual value, but there are also many niche markets such as construction equipment and plant machinery as well as leisure vehicles and boats. Similar hardware designs also constitute the on-board platform for fleet management solutions and the tracking capabilities of these systems enable basic security applications. What distinguishes vehicle tracking and recovery system from fleet management systems is the monitoring and response service of the secure monitoring centre that is linked to GPS-aided security systems.
Today, only a handful car OEMs offer telematics solutions in a few markets in the EU. Berg Insight anticipates that additional brands will launch OEM telematics solutions on the European market in response to the eCall intiative within the EU. The European Commission has a strong commitment to introducing eCall as a standard feature in all new cars and recently set 2014 as the new target date for realising this vision through regulations if necessary. Vehicle tracking and recovery is likely to become a key component for many OEM telematics systems in the next few years, especially for premium cars.
Several niche applications for wireless M2M are emerging in the security industry that have not yet reached substantial volumes. Personal security for lone workers is an application area offering significant growth opportunities in the medium and long term. Wearable integrated tracking and wireless communication devices can be used for protecting individuals. This area is mainly driven by stringent employee health and safety regulations in the UK, but other countries can also be expected to introduce similar laws in the future. Moreover, various forms of electronic monitoring of offenders are gradually being rolled out across Europe to reduce costs of running prisons and assist in the rehabilitation process.
Berg Insight forecasts that shipments of wireless M2M modules for security applications in EU27+2 will grow from 2.3 million in 2009 to nearly 22 million by 2014. At the same time, the number of alarm systems and tracking devices monitored from an alarm receiving centre and similar will grow from about 10 million in 2009 to 34 million by the end of 2014.
About the Author
Andrι Malm is a Senior Analyst with a Masters degree from Chalmers University of Technology. He joined Berg Insight in 2006 and his areas of expertise include wireless M2M, location-based services and personal navigation services.
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Table of Contents
Table of Contents i List of Figures.. v Executive summary 1 1 Overview of the European security industry 3 1.1 Market overview 4 1.1.1 Security services 5 1.1.2 Security systems 5 1.1.3 Small alarm systems 6 1.1.4 Cash handling .6 1.2 Key industry players ..8 1.2.1 Group 4 Securicor .9 1.2.2 Prosegur..10 1.2.3 Securitas..10 1.2.4 Tyco International 11 1.2.5 UTC Fire & Security 11 2 Alarm systems .13 2.1 The European alarm systems market 13 2.1.1 Monitored alarm systems 14 2.1.2 Alarm monitoring services..17 2.2 Alarm signal transmission 19 2.2.1 Small alarm system technology overview..19 2.2.2 The EN 50131 norm for intruder alarm systems .21 2.2.3 Mobile network alarm communication solutions 25 2.2.4 Market penetration for mobile network alarm communication 26 2.3 Company profiles .27 2.3.1 ADT Worldwide.27 2.3.2 Group 4 Securicor ..28 2.3.3 Prosegur Activa 30 2.3.4 Securitas Direct 30 2.3.5 United Technologies Corporation ..32 2.4 Visual security systems .33 2.4.1 Network cameras 33 2.4.2 Digital video technology..34 2.4.3 Wireless network requirements 36 2.4.4 Network camera vendors 39 3 Commercial vehicle and asset tracking..41 3.1 The European commercial vehicle market..41 3.2 Fleet management solutions ..44 3.2.1 Vehicle management.45 3.2.2 Security tracking..45 3.2.3 Driver management46 3.2.4 Transport management46 3.2.5 Mobile workforce management and lone worker security.47 3.3 Container tracking solutions 48 3.3.1 Intermodal shipping containers ..48 3.3.2 Overview of the container shipping industry .48 3.3.3 Container tracking solutions .50 3.4 Key fleet management solution providers 52 3.4.1 Cybit: Recently acquired by Francisco Partners .53 3.4.2 Digicore: A global vehicle tracking solution provider ..54 3.4.3 GE Asset Intelligence: Leading provider of trailer telematics ..54 3.4.4 Masternaut: The leading fleet management provider in Europe 55 3.4.5 Qualcomm Enterprise Services: Global provider of integrated M2M solutions..56 3.4.6 Transics: Pan-European heavy truck and transport telematics provider 57 3.4.7 Volvo Group: Dynafleet FM available with security service from Securitas..58 3.5 Satellite communication network operators 59 3.5.1 Globalstar 60 3.5.2 Iridium 60 3.5.3 Orbcomm 61 4 Car tracking and consumer asset tracking 63 4.1 The European passenger car market .63 4.2 Passenger car telematics .66 4.2.1 Stolen vehicle recovery 67 4.2.2 eCall and driver assistance 68 4.2.3 Motor insurance telematics 69 4.3 Insurance industry standards for vehicle tracking ..71 4.3.1 Belgium 71 4.3.2 The Netherlands..72 4.3.3 Norway .73 4.3.4 United Kingdom ..74 4.4 Aftermarket vehicle tracking solutions ..76 4.4.1 MetaSystem/Octo Telematics: European leader in motor insurance telematics 77 4.4.2 Cobra Automotive Technologies: Pan-European SVR provider .78 4.4.3 LoJack distributors: TRACKER, Traqueur and Detector.79 4.5 OEM car telematics solutions.81 4.5.1 BMW ConnectedDrive..82 4.5.2 PSA Group RT3/RT4/Navidrive 83 4.5.3 Volvo On Call.84 4.6 The European motorcycle and moped market .85 4.6.1 Motorcycle theft in Europe .85 4.6.2 Motorcycle tracking solutions ..87 4.7 The European leisure vehicle and boat market 87 4.7.1 Market overview ..88 4.7.2 Boat tracking solutions.90 5 People tracking 91 5.1 Corporate people tracking and lone worker protection 91 5.1.1 Lone worker legislation 91 5.1.2 Lone worker protection devices and services..93 5.1.3 Electronic monitoring of offenders.95 5.2 Consumer-oriented people tracking ..96 5.2.1 Mobile operator services.96 5.2.2 Third party handset-based tracking services 97 5.2.3 Dedicated GPS tracking devices and services 99 5.3 Company profiles ..100 5.3.1 Connexion2: Identicom and the SoloProtect managed lone worker service 100 5.3.2 GeoSentric: Tracking device industry veteran moving into social networking .101 5.3.3 Navento Technologies: Provider of end-to-end tracking solutions 102 5.3.4 Romad: Developer of the Personal Safety Phone RSP-100 ..102 5.3.5 SPOT: GPS tracking and satellite messenger device from Globalstar .103 5.3.6 Tramigo: TLD landmarks eliminates need for maps to locate assets 103 5.3.7 UbiEst: Expanding from fleet management to consumer tracking services..104 6 Market forecasts and trends ..107 6.1 Market trends and drivers..108 6.1.1 Alarm systems: GSM/GPRS complementing and replacing PSTN 108 6.1.2 Fleet management: Mixed impact from economic downturn 109 6.1.3 Car telematics: The EC sets 2014 as new target for introduction of eCall .109 6.1.4 Lone worker protection: Market driven by UK legislation 110 6.1.5 Consumer asset tracking: Steady growth from diverse applications 111 6.2 Market forecasts .111 6.2.1 Alarm systems 112 6.2.2 Fleet management, commercial vehicle and asset tracking .112 6.2.3 Car telematics.113 6.2.4 Lone worker protection services ..115 6.2.5 Consumer asset tracking applications ..115 Glossary 117
Index List of Figures Figure 1.1: Security market growth (EU27+2 20012009) 3 Figure 1.2: Market value by segment (EU27+2 2009) 5 Figure 1.3: Market value by country (EU23+2 2009) ..7 Figure 1.4: Leading European security industry players, by segment (Europe 2009) 8 Figure 1.5: Leading integrated security groups (Europe 2008) .9 Figure 2.1: Monitored small alarm systems by country (EU27+2 2009) 14 Figure 2.2: Households and homeownership by country (EU23+2 2008) 16 Figure 2.3: Homeownership and alarm system penetration (Western Europe 2009)..17 Figure 2.4: Estimated data for top ten monitored alarm providers (EU27+2 2009) .18 Figure 2.5: Monitored alarm service pricing samples (Europe 2009) ..19 Figure 2.6: Alarm system brands, by manufacturer (2009) 20 Figure 2.7: EN 50131 grading system..22 Figure 2.8: EN 50131 ATS rating criteria .23 Figure 2.9: EN 50131 grading system criteria ..24 Figure 2.10: Penetration of GSM/GPRS in new alarms (EU27+2 20092014) 26 Figure 2.11: Major ADT alarm receiving centres (Europe 2009) .27 Figure 2.12: Major Group 4 Securicor alarm receiving centres (Europe 2009) ..28 Figure 2.13: Group 4 Securicor small alarm service pricing examples (Europe 2009) 29 Figure 2.14: Visual security solution using mobile networks.34 Figure 2.15: Examples of video screen definitions.35 Figure 2.16: Network camera bandwidth requirements ..36 Figure 2.17: Mobile network video capabilities 37 Figure 2.18: Examples of network camera vendors ..39 Figure 3.1: Commercial vehicle registration data (EU23+2 2009) .42 Figure 3.2: Fleet management infrastructure overview 44 Figure 3.3: Top 10 container shipping companies (Worldwide 2009) .49 Figure 3.4: Container flows.49 Figure 3.5: Top 10 container leasing and management companies (Worldwide 2009) .50 Figure 3.6: Examples of container tracking device vendors .51 Figure 3.7: Top ten fleet management providers by installed base (EU27+2 2009) 52 Figure 4.1: Passenger car registration data (EU23+2 2009) 64 Figure 4.2: Passenger car manufacturer market shares (EU23+2 2009) ..65 Figure 4.3: SVR application lifecycle .67 Figure 4.4: eCall application lifecycle 69 Figure 4.5: Motor insurance telematics application lifecycle.70 Figure 4.6: Top five aftermarket vehicle tracking solution vendors (Europe 2009)76 Figure 4.7: Moped and motorcycle market data (EU23+2 2007) ..86 Figure 4.8: Motorcycle tracking pricing examples (Europe 2009) .87 Figure 4.9: Caravan registration data (EU25+2 2008) .88 Figure 4.10: Leisure boat market data (Europe 2008)..89 Figure 4.11: Boat tracking solution pricing examples (Europe 2009) ..90 Figure 5.1: Lone worker categories 92 Figure 5.2: Dedicated people protection and alarm devices (2009) .94 Figure 5.3: Examples of offender monitoring solution providers 95 Figure 5.4: People tracking services marketed by operators (2009) 97 Figure 5.5: Third party people tracking services using Cell-ID (2009) .98 Figure 5.6: GPS people tracking device and service price comparison (2009)..99 Figure 6.1: SIMs used for security M2M applications by segment (EU27+2 20082014) .107 Figure 6.2: M2M module shipments and active subscribers (EU27+2 2009-2014) ..111 Figure 6.3: Alarm system shipments and GSM/GPRS penetration (EU27+2 20082014).112 Figure 6.4: Fleet management shipments and active systems (EU27+2 20082014) .113 Figure 6.5: Car telematics shipments and active subscribers (EU27+2 20082014)114 Figure 6.6: Lone worker protection devices and services (EU27+2 20082014)115 Figure 6.7: Tracking device shipments for consumer applications (EU27+2 20082014).116
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