VOL II IBC(f)Fire Detection Alarms & IBC(s)Security
IBC(f) Fire Detection and Alarm Systems
The Asia(7) market for IBC(f) hardware at installed prices was worth US$ 312 million in 1994. The market has grown consistently from 1990 in volume terms, but due to the savage devaluation of the Chinese currency the market remained static in 1994 when measured in US dollars and reduced the aggregate compound growth rate during the previous 4 years to 5% per annum. We forecast that in 1995 growth will increase to 17%, but will reduce to 14% in the following year and to 12.5% the year after. China and Korea will be the main contributors to growth. The main driver for growth is the increased demand from new construction, but strong pressure to improve the indifferent safety record, particularly in the two largest markets, will also have a positive impact on sales.
Asia(7) is one of the fastest
growing markets in the world. The average annual growth in gdp in
1994 in Asia(7) was 7.5% and therefore it is hardly surprising
that this is one of the fastest growing region for IBC(f) in the
world. With a total population of some 1.5 billion, about five
times that of the EC(7), continued high gdp growth rates, more
than twice the rate in the western world and given that the
present penetration of IBC(f) is much lower than Europe this
region must be one of the most promising and exciting market in
the world. Asia(7) is one of the least developed but potentially
largest market in the world. China and Indonesia have IBC(f)
sales per capita of around US$ 0.10 as opposed to the UK where it
stands at around of US$ 4.50 some 45 times larger. Singapore at
US$ 6.5 has a higher intensity of IBC(f) than the UK and
therefore will not benefit from the "catching up"
process. However in all the other markets these figures show that
there is an enormous potential to be developed in order to reach
the average levels of penetration in Europe. If only China could
reach the lowest levels in Europe in the next ten years, this
region would become one of the largest markets for IBC(f) in the
world. Asia(7) market is difficult to penetrate but opportunities
exist for new committed entrants.
As is the case in the western hemisphere all IBC(f) products and installers have to be approved. In the case of the former it can be a long and drawn out process but once completed and established with a network of approved installers the levels of competition are generally less onerous than in other building services systems. The high growth markets of China and Indonesia and to a lesser extent Malaysia are being held back by a lack of appropriate channels of distribution. With a land area of approximately 11.5 million square kilometres much of it having extremes of climate conditions and poor transportation systems there is a vital need for third party routes to market to be developed and this presents enormous opportunities for those prepared to invest and develop for the medium and longer term. In Korea the local industry has been protected but in 1996 it will be open to all and with sales per capita of US$ 2.20 and AA systems only accounting for 35% this presents a unique opportunity to get established in this market. China is the jewel in the crown of Asia(7) market. With sales of US$ 92 million, roughly one third of the size of the UK market, but with a penetration of only US$ 0.10 per capita this market has enormous potential. Importers have naturally concentrated their efforts on the eastern seaboard and little effort has been made to develop business in the hinterland. Subject to political stability this market will continue its rapid growth and will at the start of the next millennium contribute around 35% of Asia(7) sales and be the largest market. However China has the potential to become a much larger market than we have forecast provided committed suppliers invest in developing distribution networks. If import tariffs are strictly implemented during the next few years we can expect to see more j.v. factories set up to produce AA systems.
IBC(s)Electronic Security Systems
In 1994 the Asia(7) market for IBC(s) hardware at installed prices was worth US$ 364 million. The market has grown rapidly since 1990 achieving an average annual rate of growth of 17% and but for the savage devaluation of the Chinese currency in 1993 growth would have been much higher. We forecast that in 1995 growth will increase to 21%, but will reduce to 17% in the following year and to 13.5% the year after. China and Korea will be the main contributors to growth but Taiwan will retain its special status. The main driver for growth will be the increased demand from new construction, but strong pressure to improve the crime record will also provide a boost to sales. Asia(7) is one of the fastest growing markets in the world. The average annual growth in gdp in 1994 in Asia(7) was 7.5% and therefore it is hardly surprising that this is one of the fastest growing regions for IBC(s) in the world. With a total population of some 1.5 billion, about five times that of the EC(7), continued high gdp growth rates, more than twice the rate in the western world, and given that the present penetration of IBC(s) is much lower than Europe this region must be one of the most promising and exciting markets in the world. Asia(7) is one of the least developed but potentially largest market in the world.
China and Indonesia have
IBC(s) sales per capita of around US$ 0.10 as opposed to the UK
where it stands at around of US$ 16.0 some 160 times larger.
Singapore at US$ 10.84 per capita is by far the most developed
market in Asia(7) when judged on this criteria but even here
there is much more potential to develop. However in all the other
markets these figures show that there is an enormous potential to
be developed in order to reach the average levels of penetration
in Europe. If only China could reach the lowest levels in Europe
in the next ten years, this region would become one of the
largest markets for IBC(s) in the world. There are opportunities
for new committed entrants to develop business in Asia(7). The
market for IBC(s) in Asia(7) is less well developed than either
IBC(e) or IBC(f). The market has taken longer to get established
possibly because it has been considered a lower priority but a
firm foundation has now been laid in most countries and high
rates of growth are forecast. The high growth markets of China
and Indonesia and to a lesser extent Malaysia are being held back
by a lack of appropriate channels of distribution.
With a land area of approximately 11.5 million square kilometres much of it having extremes of climate conditions and poor transportation systems there is a vital need for third party routes to market to be developed and this presents enormous opportunities for those prepared to invest and develop for the medium and longer term. Korea with sales less than 1 US$ per capita is just waiting for the supply side to wake up to the opportunities. China is the jewel in the crown of Asia(7) market. With sales of US$ 104 million, roughly one tenth of the size of the UK market, but with a penetration of only US$ 0.10 per capita this market has enormous potential. Importers have naturally concentrated their efforts on the eastern seaboard and little effort has been made to develop business in the hinterland. Subject to political stability this market will continue its rapid growth and will at the start of the next millennium contribute around 34% of Asia(7) sales and be by far the largest market. However China has the potential to become a much larger market than we have forecast provided committed suppliers invest in developing distribution networks. If import tariffs are strictly implemented during the next few years we can expect to see more j.v. factories set up to produce electronic security products.
Our definition of IBC(f) includes conventional and analogue addressable fire detection and alarm systems. IBC(s), electronic security systems includes access control, CCTV and intruder alarms.
Asia (7) includes the following countries in S.E. Asia and the Far East - China, Hong Kong, Indonesia, Korea, Malaysia, Singapore and Taiwan.
For more information please contact us at proplan@iandi.ltd.uk