Surveillance market surges

A security system kitted with a camera, left, and a monitor operates in a building in Dhaka. Growing militant activities have widened the market of security equipment.Photo: Syed Zakir Hossain

The nuance between safety and security emphasises being protected from dangers that originate from outside and avoidance of breach of security. Coupled with dependency on technology, people are turning irreversibly toward state-of-the-art security systems.
Security equipment is being used to protect airports, seaports, offices and other key points. Israel shields itself from Palestine attacks and monitors the movement of every Palestinian with its high-powered security system. The United States uses security systems to deter terror stacks.
Bangladesh has joined the security bandwagon. The use of security equipment started gaining momentum soon after Jama'atul Mujahideen Bangladesh's rise and its countrywide bomb blasts in August 2005. Since then corporate offices that include banks, non-banks, embassies and foreign offices, garment factories, government offices and hotels are using different types of security equipment for protection.
Experts say sensational robberies that take place in banks and jewelry shops across the country can be prevented if security systems, such as intruder alarms, are used.
Sixty unfortunate locker renters of the Dhanmondi branch of BRAC Bank still recall the miseries of when their precious possessions were robbed from the bank's premises. The memories still haunt them.
One man's sorrow is another man's business. Growing consciousness among people regarding safety measures has created a new window of opportunity for others, a new arena for business.
According to market players and analysts, the market for security equipment grows at 25 percent, notable since the end of 2005. They expect the growth rate to continue for several years to come.
The market has transformed itself from almost nothing to Tk 200 crore in five years.
“The tables have now turned and people now pursue us, instead of the other way round. We are sought out to install security and safety equipment at offices and homes,” said Omar Faruk, sales and project manager of ICEL Private Ltd, a leading security service provider in Bangladesh.
“I have successfully negotiated with three corporate offices on a single day last week, for installation of CCTV for surveillance of their premises,” Mohammad Wahidul Islam, a security specialist and independent supplier and installer of the product, said, citing the present demand of the CCTV.
Iqbal Hussaiyn, managing director of Magnum Engineering and Construction, said now individuals want their buildings secured and risk-free. “Use of security systems is growing rapidly."
A lot of investment is pouring into infrastructure, such as office buildings, luxury apartments, roads, corporate houses and factories, airports and seaports, so demand for advanced security and safety equipment and systems are growing in the country, he said.
The security surveillance market that includes fire alarms and detection, access control, video surveillance or transmission, intrusion alarm and automatic gas suppression system, was little known in 2000 in Bangladesh.
Growing militant activities widened the market of security equipment in the country.
“Since the countrywide bomb blasts in August 2005, the sales of security equipment started booming,” said Abdul Gaffar Molla, who runs a wholesale business of the products at the Stadium Market.
“We sold hundreds of metal detectors soon after the 2005 bomb blasts by JMB,” Yasin, a retailer at the Baitul Mukarram market, said.
Multinationals and factories in the export processing zones are also obligated to install security items to ensure global standards.
Rapid development of technology is changing the use of security equipment. Market demand is now switching to highly sophisticated equipment, such as intruder alarm, high-powered cameras, etc, according to analysts.
Internet Protocol (IP) networking is rapidly replacing the analogue security systems. Closed-circuit television (CCTV), fire alarms and detection and access control equipment hold the reins to the Bangladeshi market.
Access control equipment that includes hand-held and door detector and scanners are used most commonly in Bangladesh. The products are made in China and cost less than the products made in Europe, US and Korea. The minimum and maximum price of a hand-held detector is Tk 3,000 and Tk 30,000, door detectors range from Tk 2-8 lakhs. A good quality scanner costs at least Tk 6 lakh.
The major players in the market for security equipment are ICEL, Group-4 Securicor, MPL, Pixel, Hi-Tech and Dells.
Currently, ICEL and G4S have around 200 and 300 clients respectively, including banks and foreign offices. They provide total security solutions to their clients, plus maintenance.
“Floating tender by corporate groups to procure security equipment is also a new trend in Bangladesh. Earlier, corporate offices installed the services by bilateral discussions, now they obtain services by competitive bidding,” Shariful Islam, manager, technical services division of G4S, said.
According to industry people, the CCTV market is gaining momentum and is emerging as a big opportunity for local market players to make money. Now the CCTV market accounts for a major share of the total security surveillance market in Bangladesh, followed by the metal detectors.
Although intruder alarms are relatively new, it is gaining popularity as it helps avoid robbery and burglary at corporate offices, especially banks and residences, Shariful Islam said.
Abedur Rahman Sikder, head of marketing and corporate affairs of BRAC Bank, said all local offices of the bank have already been protected by sophisticated security systems, including intruder alarm. "Other branches will soon also come under the system."
“The rise in the sale of fire detection and protection system and CCTV, is proportionate to the increasing number of high-rise buildings in Dhaka,” Wahidul Islam said.
“We have progressed steadily and now hold about 30 percent market share in Bangladesh. We aim to consolidate this and extend our market coverage to become a leading electronic security system provider,” said Abul Ehsan, general manger (operations) of ICEL.
After-sales service is an important feature of this business, market players said. Most companies provide one-year free services and after that, services cost 5 to 7 percent of the total project cost.
According to A and S Group, an integrated security service provider based in China's Taiwan, the global security surveillance market was $62 billion in 2007, which is to reach over $90 billion in 2012. The group says the Asia-Pacific demand for security equipment will surge to $24.7 billion by 2012.

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