8 June 1998

Date: Mon, 8 Jun 1998 17:53:53 -0700 (PDT)
Subject: Security Services Market Structure in Upheaval 
To: jy@jya.com
From: nobody@shinobi.alias.net (Anonymous)

Monday June 8, 8:04 am Eastern Time

Company Press Release

SOURCE: Frost & Sullivan

Frost & Sullivan: Security Services Market Structure in Upheaval as New 
Competitors Vie for Market Share

MOUNTAIN VIEW, Calif. June 8 /PRNewswire/ -- With the recent entry of new 
competitors to the U.S. security services market, the most critical issue 
for market participants concerns the evolving market structure. Related 
industries are converging, and a new breed of leaders are emerging, more of 
them from non-security backgrounds. This has resulted in blurring 

definitions, which makes tracking the market a bit more tricky.

According to strategic research conducted by Frost & Sullivan 
(www.frost.com), U.S. Security Services Market, the total market is 
expected to grow at a rate of 6.4 percent over the forecast period 1998 to 
2004. The increasing demand, low market penetration and strong potential 
for upgrade markets all contribute to the security services market's strong 

Contributing also to the growth are opportunities in systems integration, 
and in access control. The growing concern about such security risks as 
work violence, industrial espionage and employee theft, push so many 
companies to evaluate the addition of access control systems as part of 
their security web.

Other developments in the industry include new concepts such as home 
automation, intelligent buildings and service bundling. Security service 
companies today have wider service offerings, including the capability to 
provide home automation systems -- a move which may be interpreted as the 
security industry's step to seize back opportunities lost from home 
automation specialists performing security services. Meanwhile, service 
bundling is still a developing market, so one company offering all services 
is still quite premature. To test the viability of the basic concept of 
service bundling, however, many security service companies are opting 
instead for partnerships where other service companies, such as electricity 
and telephone companies, come together to provide a menu of services, says 
Rose Caparas, Frost & Sullivan security research analyst.

New technologies driving market growth are CCTV and the wireless 
technology. End users are integrating CCTV in their security systems to 
increase security detail within a specific area and provide a real-time 
monitoring of the goings on in a specified area. Biometrics, smart cards 
voice transmissions, and asset tracking systems are also expected to impact 
the security service market over the next decade.

The entry of large utility and telecom companies poses a serious challenge 
to the security service industry. In what is seen as an attempt to jockey 
for position, these deregulated industries bring new marketing concepts not 
traditionally embraced in the security service market. For instance, 
service bundling is a possible marketing tool which could give an advantage 
to the deregulated industries.

In addition, pricing is a real concern for security service market 
participants. The bargaining power of new market leaders from the 
deregulated industries may change the stakes, and it is uncertain whether 
they will help increase prices, or bring down prices as a marketing 
strategy to keep customers.

Frost & Sullivan has divided this study, U.S. Security Services Market, 
into two separate chapters: Residential and non-residential security 
services. The report is designed to provide an overview of the market 
structure by highlighting market trends, revenue forecasts, market shares, 
competitive issues and strategies.

This security industry research has integrated the Market Engineering 
consulting philosophy into the entire research process. Critical phases of 
this research include: Identification of industry challenges, market 
engineering measurements, strategic recommendations, planning and market 
monitoring. All of the vital elements of this system help market 
participants navigate successfully through the U.S. security service 

The companies participating in this market include: ADT Security Services, 
Inc., Advanced Security Protection, Inc., AFA Protective Systems, Inc., 
Alarm Detection Systems Inc., Alarmco Inc., Alarmguard Inc., Alert Alarm 
Co. Inc., Alert Holdings Group Inc., All Guard Alarm Systems Inc., American 
Alarm & Communications Inc., American Alarm Systems Inc., American Home 
Security (BHC Trust), American Security, Ameritech SecurityLink, Argus 
Security Systems Inc., Associated Security Corp., Atlas Security Service, 
Baltimore Alarm & Security, Bay Alarm Company, Brink's Home Security, 
Brown's Security Systems, Care Alarm Systems, Central Control Alarm Corp., 
Central District Alarm Inc., Central One, Checkpoint Ltd., 
Comsec/Narragansett Security Inc., Crime Detector Inc., Crime Prevention 
Inc., Custom Security Systems, Day Detectives, Dallas Burglar Alarm 
Company, Dallas Security Systems Inc./DSS Fire, DGA Security Systems, Inc., 
Digital Detection Systems Ltd., Doyle Security Systems, Engineered Fire 
Systems Inc., Engineered Protection Systems Inc., Entergy Security, Inc., 
Fail-Safe Security Systems, Federal Alarm Systems, Inc., Fire Alarm Service 
Corp./E.P. Reid Inc., General Security, George Alarm Company, Inc., Greater 
Alarm Company, Inc., Guardian Alarm Company, Guardian International Inc. 
[OTC BB:GIIS - news], Guardian Protection Services, Inc., Holmes Protection 
Group Inc., HHomesafe Security System, Honeywell Inc. (NYSE:HON - news; 
Home and Building Control), Integrated Protection System Inc., Inter-Active 
Services Inc., Masada Security Inc., Midnight Burglar Alarm Systems, Inc., 
Mountain Alarm, Multimedia Security Services, Mutual Central Alarm Services 
Inc., Pacific Alarm Systems Inc., Peak Alarm Company Inc., Pelletier Alarm 
Services, Per Mar Security Services, Post Alarm Systems, Inc., Professional 
Security & Sound, Protection One Inc. [Nasdaq:ALRM - news], Protection 
Service Industries, Protective Alarms Inc., Ranger American of Texas, 
Response USA Inc. [Nasdaq:RSPN - news], Richmond Alarm Company, Robinson 
Alarm Co., Rollins Protective Services, Inc., Safeguard Security Services 
Inc., Safe Systems, SDA Security Systems Inc., Security Corp., Security 
Equipment Inc., Security of Los Angeles Inc., Security Sure Alarm Company, 

Security Systems Inc., Sentry Detection Inc., Sentry Protective Systems, 
Smith Alarm Systems, Sonitrol Security Systems of Hartford , Sonitrol of 
Sacramento, Sonitrol of Santa Clara , Sonitrol Security Services Inc., 
Superior Alarms, Supreme Security Systems, Inc., Sylvester's Security 
Alarms Inc., Time Warner Security, US Alarm Systems Inc., Vector Security, 
Vivitar Security Systems Inc., Washington Alarm, Inc., Wells Fargo Alarm 
Services, Inc., Westar Security Services, Westec Security, Inc., World Wide 
Security, Wyandotte Alarm Co., Industry Associations: American Insurance 
Services Group Inc., American National Standards Institute (ANSI), American 
Society for Industrial Security (ASIS), Association of Public-Safety 
Communications Officials - International (APCO), Automatic Fire Alarm 
Association, Factory Mutual Research Corp. (FMRC), International 
Association of Chiefs of Police (IACP), International Association of Fire 
Chiefs (IAFC), National Association of Fire Equipment Distributors, 
National Burglar & Fire Alarm Association (NBFAA), National Electrical 
Manufacturers Association, National Fire Protection Association (NFPA), 
National Sheriffs Association, Security Industry Association (SIA), 
Underwriters Laboratories Inc. (UL).

Frost & Sullivan is an international marketing consulting company that 
monitors the security industry for market trends, market measurements and 
strategies. This ongoing research is utilized to update a series of 
research publications such as #5711-11 Radio Frequency Identification 
Equipment, #5519-11 U.S. Physical Security Equipment Market, and #5716-11 
World Markets for Smart Card and Magnetic Stripe Readers, and to support 
industry participants with customized consulting needs.

Visit Frost & Sullivan's web site @: http://www.frost.com

Report: 5697-11 Publication Date: June 1998 Price: $2950

Copyright 1998 PRNewswire. All rights reserved.