Code Requirements and the Need to Protect Life and Property Stoke the North American Fire and Life Safety Market, Finds Frost & Sullivan
MOUNTAIN VIEW, Calif., Apr. 12
Environmental concerns outweigh price issues in the adoption of fire and life safety systems
MOUNTAIN VIEW, Calif., April 12, 2012 /PRNewswire-Asia/ -- The strict enforcement of safety codes requiring all industrial and commercial buildings in North America to install systems for quick detection and suppression of fires has created a robust market for fire and safety systems. Existing buildings undergoing renovation also need to upgrade or replace existing systems to comply with current codes aimed at protecting building occupants and the building itself.
New analysis from Frost & Sullivan's (
http://www.buildingtechnologies.frost.com( http://www.frost.com/prod/servlet/svcg.pag/EVBT )) North American Fire and Life Safety Market research finds that the market earned revenues of more than $2.10 billion in 2010 and estimates this to reach $2.37 billion in 2015.
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The market got a boost from the enforcement of National Fire Protection Association (NFPA) standards, which ensure that buildings are equipped with adequate fire and life safety equipment.
Additionally, insurance companies often offer incentives to building owners for installing systems that meet more than just the minimum requirements, further driving growth in the fire and life safety market.
"The building and fire codes also mandate that systems are inspected at least once a year," said Frost & Sullivan Research Analyst Alejandra Lozano. "These periodic inspections sometimes lead to system replacement, driving revenue growth in the market."
System manufacturers tend to be cautious despite the scope of the market, as the decline in construction activity and intense price competition limits the market's growth. The last few years during the economic downturn have been particularly tough on system manufacturers, with end users scrutinizing every purchase and demanding cost-effective systems that also meet all code requirements.
The escalating competition has resulted in price wars, which are squeezing the margins of manufacturers. To address this issue, manufacturers must either cut costs of production or offer innovative new products at competitive prices. They could also promote fire and life safety equipment based on technology and additional features. This strategy is likely to succeed well in niche markets, where end users need equipment that meets specific requirements.
While end users are keen to comply with fire codes, they are also discerning in choosing products that have the least impact on the environment. The high global warming potential of some of the gaseous fire suppression agents and the human exposure issues related to the use of carbon dioxide (CO2) in occupied spaces has driven the use of systems that employ clean agents.
"The market has witnessed a shift toward the use of fluorinated ketone (FK) agents such as Novec, 1230 because they have zero ozone depletion and negligible global warming potential," said Lozano. "Water mist suppression has also seen a recent surge in interest from end users, mainly because these systems consume less water, which promotes the green-environment concept."
North American Fire and Life Safety Market is part of the Building Technologies Growth Partnership Services program, which also includes research in the following markets: Global Fire and Life Safety Market; Fire and Smoke Detection Devices Market in Australia; European Fire & Safety Market: Opportunities by Vertical Application Sector; and European Fire Suppression Systems Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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North American Fire and Life Safety Market
Corporate Communications - North America
SOURCE Frost & Sullivan