Philippines Electronic Security Market Overview and Size
The report Philippines Electronic Security Market Outlook to 2024-Emergence of Technology Integrated Electronic System and Growth in Infrastructure Projects provides a comprehensive analysis of the various aspects such as the market size of the Philippines electronic security market, video surveillance systems market, fire alarm systems market, access control systems market and intrusion detection systems market. The segmentation has been thoroughly covered in the report by transmission and demand from end-users for each product category considered in the report. The report also covers the market shares and revenues of major companies in the Philippine's electronic security market. It also covers the future outlook and projections, which have been analyzed on the macroeconomic factors that have a direct bearing on the market. Competitive landscape of major players have been covered including Hikvision, HID Global, UTC Fire, Panasonic, Dahua, Bosch Security and others. Future market segmentation, growth opportunities, up-coming business models, government regulations and analyst recommendations have been covered.
Philippines Electronic Security Market Overview and Size
Among the 5 ASEAN countries such as Indonesia, Malaysia, Philippines, Thailand and Vietnam, the Philippines has the second-highest annual growth rate of around 6.5% in GDP from (2018-19). The economic expansion sets the stage for similar growth in the Philippines’ the electronic security industry, which is at a relatively young stage compared to other mature Asian markets yet have a lot of room to grow. The electronic the security market in the Philippines has grown tremendously over the last few years, on the grounds of an increasing number of criminal and terrorist activities that has stimulated the need for surveillance at public places, commercial buildings, banks, and financial institutions. The electronic security market in Philippines has grown at a promising CAGR during the period 2014-2019.
Philippines Electronic Security Market Segmentation
By Channel of Sales (Direct Sales and System Integrator Led): The electronic security market in the Philippines is segmented into Direct sales and System Integrator Led with System Integrator holding a majority share in the market in 2019. System integrators provide the electronic security systems as per the clients’ requirements. They also save the end-user client personnel cost and also take accountability for time and resources.
By Organized and Unorganized Sector: The electronic security market in the Philippines can be broadly categorized into organized and unorganized sectors. The organized sector has dominated the Philippines electronic security market. Despite being price sensitive, consumers have become conscious of the product quality they are purchasing. The consumers have attempted to focus on the technological aspect and their requirements well. This has been one of the prime reasons behind the enlarging the share of the organized sector and declining share of the unorganized sector.
By Residential and Non-Residential Sector: The non-residential sector has been a major contributor to the overall revenues in the Philippine's electronic security market during the span of the last five years 2014-2019. The market has been largely supported by government-issued norms to install electronic security and surveillance equipment in buildings and offices of under commercial and industrial areas as well as banks and other financial institutions. The residential electronic security market presently accounts for a small meager part of the Philippines electronic security market and has showcased a slower growth as compared to the non-residential sector over the years. The residential electronic security market in the Philippines has been driven by rising urban population and consequent growth in the housing societies which have been increasingly resolving to install electronic security and surveillance systems in the buildings.
By-Products (CCTV, Fire Alarm Systems, Access Control Systems, Intrusion Detection Systems, and Specialty Devices): The electronic security equipment can be broadly divided into video surveillance systems, access control systems, intrusion alarms, fire alarm systems, intercom, and others including metal and X-ray detectors.
CCTVs: CCTV’s have been the major contributor towards the growth trajectory of the industry over the past five years. The demand for these systems is majorly driven by the government, banking, commercial and transportation sector which require a high level of security systems
Fire Alarm System: Philippines fire alarm market is well established and with the arrival of new and innovative technologies, the market has achieved an increase in the electronic security market in the Philippines. The market amplified as the Government rules and regulations mandated the installation of fire alarm systems in buildings and offices.
Access Control Market: The increase in revenues has been attributed to the technological advances in the access control systems market and improved usage of smart cards and biometric solutions. Additionally, growing awareness about the importance of security equipment as a result of a rise in burglaries, theft and overall sense of insecurity also supported the sales.
Intrusion Alarm Systems Market: Intrusion alarms are most popular amongst the residential sector, but they fail to garner demand from other sectors, owing to high-rate of false alarms instances, generally induced by environmental conditions. The financial sector including banks was amongst the early adopters of intrusion alarms in the country, as the government made the installation of intrusion alarms and other electronic security equipment mandatory for banks and hotels.
Trends and Issues
Filipinos have started shifting towards wireless technology-based alarm systems since they are easy to install and the components of a wireless security alarm system can be moved to different locations in the home. The wireless home security alarm system works through a transmitter. Each component has a transmitter that sends signals to the central control receiver of your alarm system. Infrastructure development has increased in the recent decade. An increasing number of railway stations, airports, roads, colleges, hospitals, offices and shopping malls and others have helped in surging the demand for electronic security systems. Under the “Build Build Build” Program, PHP 8.4 trillion is allocated for infrastructure projects up till 2022. As of June 2018, over 60 projects are listed under this program, including 24 roads, highway and bridge projects, 15 airport-related projects and nine rail/subway projects.
System Integrators in Philippines Electronic Security Market
System Integrators have benefitted the most from the presence of foreign manufacturers in the country over the period 2014-2019. System integrators sell and install products of different manufacturers. They can customize a sale depending on the customers’ needs. Owing to the local presence of foreign manufacturers in the country, it has become easier for the system integrators to procure those products. They are the ones who install them and provide after-sale services. Furthermore, entry of foreign manufacturers in the market has created a number of employment opportunities for the system integrators in the country as they are the ones installing their products in different sectors. During 2019 (P), the total revenues generated by system integrator from sales and installation for electronic security products has grown at a significant growth rate during the period 2014-2019.
Compeititive Landscape of Philippines Electronic Security Market
Philippine's electronics security market is highly fragmented with the presence of foreign companies. In terms of revenues and technology, International companies have dominated the market over the past few years. However, a very small amount of local players do benefit from the presence of these foreign companies. CCTV products market is highly concentrated with the presence of Hikvision been dominating the market. On the other side, the Fire alarm system and access control systems market is fragmented among a large pool of international companies, innovating products to penetrate the market for electronic security products.
Philippines Electronic Security Market Future Outlook and Projections
Philippines electronic security market is expected to witness phenomenal growth across all industry verticals driven by the growing awareness among the domestic population. The wide publicity by media and other government entities about the advantages of electronic security systems are anticipated to further support the growth of the market in coming years. Additionally, recurring incidents of crime, terror and burglary have also driven the need for an around-the-clock robust security solution. These factors will amplify the demand for CCTV surveillance systems, access control systems, intrusion alarms, fire alarm systems and specialty security equipments in the coming years and hence will lead to the overall development of the market.