Indian Security Systems Market

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December 2008

For further information on the Indian Security Market please contact Kimberlee Luce via email at
kluce@bostonanalytics.com or by phone at 617-457-7888 ext. 311

175 FEDERAL STREET | 14TH FLOOR | BOSTON | MASSACHUSETTS 02110 | TEL. 617.457.7888 | FAX. 617.457.7889
 Definition and Segmentation Definition and Types
The security systems market can be segmented into cyber security
systems and physical security systems
India Security Market(1)

Segmentation Cyber Physical

Basis Security Security

Segments Systems Services

Focus of the Study

Fire
Access Alarm Detection
Surveillance Others
Controls System and
Protection
max Et c udor P

Source:
(1) Boston Analytics Analysis.
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 Value Chain Analysis Pricing

End-users buy security products at a premium of 30%–40% above

manufacturing costs

Margin Levels of Entities Involved (By Player Type)

150
INR 136
135
6.5% Explanation
120
12.5%
Margins at each level (%)

105 • For example, a manufacturer spends

INR 100
13.5% INR 100 in the production of security
90 products
• The incremental margins for the
75
channel partners in the value chain are
60 as follows:
– Equipment Manufacturer: 13.5%
45 – System Integrator: 12.4%
– Contractors: 6.5%
30 • The retail price to be paid by the end
15 user is INR 136)

0
Manufacturer cost Equipment
12%–15%System Integrator Contractors 5%–8%
10%–15% End User price
Manufacturer margin margin
margin Range

Entities in the Value Chain

Source:
(1) Boston Analytics primary research
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 Market Dynamics Market Size—Security Systems Market
The physical security systems market is expected to grow to
at least $1.3 B by 2011, growing at a CAGR of 30%
Indian Security Systems Market (2003–2011)(A),(B),(1),(2),(3)
CAGR: 33.8% CAGR: 30%
Security Systems Market(1),(2),(3)

• The market will continue to grow at 30%–35%

Market Size ($ M)

due to a growing awareness and demand for

products from various sectors
– Among the biggest spenders of installing security
devices are IT/ITES companies, who spend 30%
on their security budgets, followed by commercial
institutions at 20% and hospitality industry at 15%
– Retail and aviation sectors will be major
contributors of growth
– In addition, infrastructure projects, such as,
airports, metro railways, etc. are spending
increasing amounts on security equipment

• Indian security systems market is still at a nascent state compared to developed nations
• However, it is expected to grow at a faster rate of 30% compared to approximately 10% of developed nations (US and UK) due to a rise in the
crime and terrorism rate, growth in infrastructure, and rising awareness about security products
Note:
(A) The market does not include services or products related to the cyber security market.
(B) Future CAGR does not take into account the unknown impact of the recent Mumbai terror attacks (on 26th November 2008)
Source:
(1) Background Research on Indian Electronic Security Market. http://www.valuenotes.biz/research/samplereports.asp (accessed December
10, 2008).
(2) Market Overview of Safety & Security, International Trade Resource Center,
http://www.exportnh.org/uploads/safety%20%20seurity%20(2).pdf, (accessed December 9, 2008).
(3) Security solutions sector sees big growth on terror threats, Hindu Business Line,
http://www.thehindubusinessline.com/2008/09/29/stories/2008092951520200.htm (accessed December 9, 2008).

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 Market Dynamics Market Size—Market Segmentation
The government/public sector dominates the security systems
market which is primarily concentrated in the North

Market Segmentation by End-users (2007)(A),(1),(3) Market Segmentation by Geography (2007)(2),(3)

Residential 5%
$ 22.5 M Major markets: Major Markets:
• Delhi and • Kolkata
NCR • Orissa
• Haryana
• Punjab
• Western UP
Retail 15% • NE Rajasthan
Public
$ 67.5 M Sector/Government
40%
$ 180 M

Offices/Commercial Major markets:

20% • Mumbai
• Goa Major Markets:
$ 90 M • East Gujarat • Hyderabad
• Bangalore
• Chennai
Industrial 20% Largest Market • Coimbatore
• Mangalore
$ 90 M 2nd Largest Market • Trivandrum
100% = $ 450 M 3rd Largest Market
Smallest Market
• The major consumer of security systems is the government • North India represents the security systems market followed
and public sector followed by industrial and commercial closely by South India
segments • Western parts of India follow next with eastern parts of the
• The hospitality industry is included as part of the country having the lowest share in the security market
offices/commercial end user segment
Note:
(A) Hospitality sector is included in the commercial sector.
Source:
(1) India Research Findings, IFSEC India. http://www.ifsecindia.com/files/india_research_findings.pdf (accessed October 20, 2007).
(2) Background Research on Indian Electronic Security Market. http://www.valuenotes.biz/research/samplereports.asp (accessed December 10, 2008).
(3) The Indian Security Industry market, Security Today Online, http://www.securitytoday.in/PDF/CoverStoryMay07.pdf (accessed December 10, 2008).

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 For further information on the Indian Security Market or to purchase the entire report with the
Table of Contents listed below, please contact Kimberlee Luce via email at
kluce@bostonanalytics.com or by phone at 617-457-7888 ext. 311

Table of Contents

 Definition and Segmentation

 Value Chain Analysis
 Market Dynamics
 Market Size
 Manufacturer Analysis
 End-user Analysis
 Drivers and Inhibitors
 Trends
 Conclusion
 Appendix

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