Exciting electronic security growth prospects in central & eastern Europe

Future sales opportunities for electronic security suppliers in central and eastern European countries are bright, according to industry analyst Frost & Sullivan. Average annual growth until 2010 is a forecast 13.7 per cent, owing to improving economies in most EU accession countries within the region.

Prospects are positive for providers of CCTV, fire detection, access control and intruder alarm systems, with the total market expected to grow from $853 million in 2003 to $2126 million in 2010. Poland and the Czeck Republic, together with Slovakia, are the biggest markets currently, followed by Russia and Hungary.

Factors driving this market expansion include the significant growth potential of this region’s developing economies, with the security market’s expansion related to fast growing sectors such as retail and banking.

The ballooning construction market has translated into rising demand for security equipment in new office buildings, warehouses and supermarkets, along with requirements for measures such as CCTV in banks, shops and other public places. Countries joining the EU are upgrading their safety and security features to compete their western counterparts.

An increasing crime rate, owing to high unemployment and low incomes in the area, is further fuelling the need for improved security. Stricter legislation in the accession countries is behind the trend too, a factor endorsed by Sebastian Herrera, deputy MD of Pyronix, which exports more than 50 per cent of its output.

“Product standards in these countries are moving up, partly because of market evolution, the introduction of government legislation and an influx of more professional installers, specifiers and end users, he told Security Installer.

“We still face the same problem of cheaper imports as we do in the UK, but there is a growing appreciation of quality systems in these markets. It’s the same reason that more BMWs are being driven in these countries than Ladas used to be.

“We work through distributors in these countries and help them through improved training and other back-up support.”