This report, published in Q4 2011 is the definitive resource for physical security products, uniquely combining clearly defined market sizing statistics with financial analysis of M&A and funding.

It is our 3rd annual assessment of the world’s Physical Security equipment industry. It is an holistic analysis that brings together all the factors that influence this industries future; including technology, finance and the capability to deliver products that meet the customers need to drive more ROI out of investment.

The survey establishes valuable statistics about the business size, together with its structure and shape, as well as geographic distribution across 3 main product segments, Access Control, CCTV / Video Surveillance and Intruder Alarms and then forecasts demand to 2016.

In 2011, the Physical Security Industry has outperformed most peers. In a troubled economic climate it has increased revenues and profitability whilst merger and acquisition has surged by more than double in the last 2 years to $9.847 billion. It looks like a safe port in the storm.

Within its 139 pages and over 16 charts and tables, the report sieves out the facts and draws conclusions, as to what is shaping the future of the physical security industry;

> Whilst we forecast a growth in demand of CAGR 3.7% over the next 5 years, demand will be very patchy in the developed markets of the world. Growth will need to come from the enormous latent demand for security equipment waiting to be exploited in the emerging markets of the world.

> There is only one solution to reducing the impact of a recession on demand and that is to continue with the innovation program of delivering more effective systems at lower prices.

> Falling IP prices together with much easier to install products and improved performance have all conspired to increase the Return on Investment (ROI) and total cost of ownership of this fast growing technology.

> This is still a fragmented market despite 2% of the players taking 49% of the product business.

> The total value of world production at factory gate prices was $19.17 billion. Of this Video Surveillance products at $9.1 billion take a share of 47%.

> New entrants from the Defense and IT related industries see opportunities to leverage their technological expertise and with their financial muscle will contribute much to the future growth of this industry.

For only USD $999 this report provides valuable information into how physical security companies can develop their business through merger, acquisition and alliance.

Who Needs This Information?

The information contained in this report will be of value to all those engaged in managing, operating and investing in physical security companies (and their advisors) around the world. In particular those wishing to acquire, merge, sell or find alliance partners will find in particularly useful.

"Memoori's report titled The Physical Security Business in 2011 provides a tremendous amount of industry data and insights into both current events and future trends.  More than just an aggregation of high level numbers, the report addresses industry nuances that are helpful for insiders.  At the offered price, it certainly provides a good return on investment." - Tom McConnell, Investment Banker

Table of Contents

Executive Summary

1.    Introduction

2.    Size, Structure & Shape of the Business
2.1    Market Size & Forecast to 2016
2.1.1    Market Size & Distribution in 2011
2.1.2 Market Forecast to 2016
2.1.3 Market Penetration by Region
2.2    Structure of the Business
2.3    Market Share

3    Major Growth Drivers
3.1    IP is Key
3.2    From Cost Centre to Cash Generator & On To Convergence?
3.3    Focus has Intensified Competition
3.4    Joining the Horizontal Layers Independently or Through Alliance

4    Predicting the Future of Emerging Technology Drivers
4.1    Wireless Technology
4.2    Video Surveillance as a Service (VSaaS) and Managed Video
4.3    Video Technology, IP Cameras & HDCCTV
4.4    Storage, Standards, Industry Verticals & the Voice of Society
4.5    Security Management Software – Analytics, PSIM & Now PIAM

5    What is Driving Consolidation?
5.1    Internal Strategic Acquisitions
5.2    External Buys - Defense / IT & Communications Related Companies

6    M&A Performance / Valuation 2011 & Forecast to 2016
6.1    The Progress of Consolidation & Outlook to 2016
6.1.1    Consolidation in 2011 Outperforms any Previous Year
6.1.2    Forecast of M&A Business to 2016
6.1.3    M&A Analyzed by Business Segment
6.2    Valuation – Exit Multiples & Drivers
6.2.1    Performance of Exit Multiples 2005 – 2011
6.2.2    Technology & Its Impact on Valuation

7    The Investment Market
7.1    The State of the Investment Business & Exposure to the Security Industry
7.1.1    Impact on the Security Industry
7.2    Investors in the Security Industry & Recipients

8    Identifying Potential Merger & Acquisition Targets
8.1    Potential Acquisition Targets
8.2    Business Opportunities in the Fastest Growth Markets
8.2.1    The IP Video Industry
8.2.2    Security Management Software
8.2.3    Video Surveillance as a Service
8.2.4    Access Control, Biometrics & Identity Authorization
8.3    Strategic Buys Dominate Whilst IPO’s Fail To Materialize
8.4    Alliances: The Precursor of Merger & Acquisition
8.5    Will Mergers Play a More Important Role in 2012?

Appendix
A 1.1 - Listing of Venture Capital Companies & Their Security Investments
A 1.2 – Acquisitions & Funding Announced in 2010 / 11
A 1.3 - Potential Acquisition Targets 2010 / 11    121
A 1.4 - World’s Major Security & Safety Companies

List of Charts and Figures

Fig 2.1 – World Sales of Security Products 2011
Fig 2.2 – World Distribution of Security Products by Major Region 2011
Fig 2.3 – World Sales of Security Products 2008 – 2016 ($bn)
Fig 2.4 – Comparison of Physical Security Penetration by Major Region 2010
Fig 2.5 – Distribution of Sales by Major Grouping by Value 2011
Fig 2.6 – Distribution of Sales by Major Grouping by Number of Companies 2011
Fig 2.7 – Average Revenue for Group A, B, C & D Companies ($m) 2011

Fig 6.1 – Security Deals Completed from 200 to 2011
Fig 6.2 – Forecast of Deals to 2016
Fig 6.3 – Acquisition Valuation Benchmarks 2005 to 2012
Fig 6.4 – Growth through Digital IP Technology
Fig 6.5 – High Value / High Technology

Fig 8.1 – Distribution of Video Surveillance Manufacturers by Country 2011

List of Tables

Table A 1.1 - Listing of Venture Capital Companies & Their Security Investments
Table A 1.2 – Acquisitions & Funding Announced in 2010 / 11
Table A 1.3 - Potential Acquisition Targets 2010 / 11
Table A 1.4 - The World’s Major Security & Safety Companies