Saudi Arabia's intrusion detection market is expected to enjoy a growth over the next six years, after experiencing a decline of recent, said 6Wresearch in a recently published a report.
The study, titled "Saudi Arabia Intrusion Detection Market (2017-2023)," cites that the country's intrusion detection market is projected to grow at a compound annual growth rate of 18.1 percent from 2017 to 2023.
According to the report, Saudi Arabia's intrusion detection market declined during between 2014 and 2016, owing to deteriorating economic conditions, primarily due to slump in oil prices and halt in several government projects in the country. However, with a recovery of crude oil prices, the market is set for a renaissance, it said.
Other drivers including increasing infrastructural projects, upcoming hotels and shopping malls, increasing inflow of FDI in the construction sector and setup of new large and medium enterprises are also expected to push the country's intrusion detection market, the report said.
"The announcement of government smart cities project, under which construction of 10 smart cities are to be completed by 2020, would further result in an increase in demand for intrusion detection system in Saudi Arabia over the next three years," the report said.
By product type, fiber optics sensors captured major revenue share of the market. "Growing demand for smaller, secure and reliable intrusion detection alarms and declining prices of fiber optics intrusion detection systems resulted in growth of intrusion detection market in the country," the report cited Shefali Goel, Senior Research Analyst for Research and Consulting at 6Wresearch, as saying.
"Further, under Vision 2030, Saudi Arabia government has passed a plan to invest in the infrastructural development plans and to allow FDI in the commercial and retail sectors which would result in an increase in the construction projects in the country, further leading to an increase in deployment of intrusion detection system at various locations," Shefali concluded.
Saudi Vision 2030 is an initiative whose objectives include lowering the country's rate of unemployment from 11.6 percent to 7 percent, increasing SME contribution to GDP from 20 percent to 35 percent and increasing women's participation in the workforce from 22 percent to 30 percent, according to the project's website.
The paper also cited Krishan Kohli, Research Associate for Research and Consulting at 6Wresearch, as saying: "In Saudi Arabia, Central region registered maximum deployment of intrusion detection systems on the back of increasing infrastructural development activities, especially in the commercial and industrial verticals."
He added: "Further, industrial and government and transportation verticals accounted for highest revenue share followed by commercial offices, residential, and others. Over the next six years, the government and residential verticals are forecast to grow at a higher CAGR during 2017-23."
Some of the major companies listed in the report include Alhamrani Universal Company, Arecont Vision, Azad Tech, Bosch Security System, Honeywell International, Interlogix, OPTEX, Pelco, Siemens and Tyco Electronics Saudi Arabia Limited.
One of those companies, OPTEX, cited compliance as a driver as well. "As an intrusion detection manufacturer, we see the greatest impact of regulation in Saudi Arabia. The HCIS regulation requires a minimum level of security systems depending on the type of building. In building types 4 and 5 - government buildings, utilities and critical infrastructure - perimeter protection and intrusion detection systems have to be installed," said Gaurav Mahajan, Divisional Manager for Middle East at OPTEX, in a separate interview.
Media Source: Asmag