Security Alarm Services in Canada to Grow Marginally Over Next 5 Years
Over the next five years security alarm services industry revenue in Canada is expected to increase slowly at an average annual rate of 1.7 percent to $1.1 billion, which includes 1.0 percent anticipated growth in 2016 alone, according to a recent report from market research firm IBISWorld. More than 47 percent of this market is made up of residential security alarm services with monitoring, followed by 27.5 percent of the market being non-residential alarm system services with monitoring. The remaining 25.3 percent is made up of security system and lock installation without monitoring.
According to the report, factors driving growth include Canadian residential construction, employment and per capita income, which boosted demand for new security system installations and made security-monitoring services more affordable. New business formation, increasing non-residential construction and rising corporate profit margins bolstered demand from business and commercial clients as companies increased their spending on security and safety systems designed to protect their assets from crime. Additionally, the report cited the availability of conveniences such as mobile apps and smart thermostats and other smart home technologies as a positive driver for industry growth. Shifting demographics also will help propel industry revenue growth as security alarm service companies continue to offer safety monitoring features to a progressively aging Canadian population.
On the flipside, according to IBISWorld, innovation also led to external industry competition as cable and telecom companies have made inroads into the digital home service and security space. As a result, competition from outside industries, such as cable service providers, is anticipated to augment price pressures and, ultimately, lead to marginal industry profit growth during the next five years to 2021. For more information about this report, visit: www.ibisworld.com.