Security Industry's Performance in the Trend of World Economic Recession

Over the years, financial markets have merely reported bad news that exaggerated the possible consequences. For the same reason, reports of economic recovery have also rapidly increased. The facts and figures of Memoori's executive summary this month show that there are no signs of serious adverse trends, which will reduce the opportunities for the development of the security industry in the next six months, but they expressed their lack of confidence in this assertion and remain cautious.

The figures for the first quarter of this year show that the joint venture has slowed down significantly, and the number of mergers has dropped by 20% compared with the same period in 2010. There has been a clear recovery in the last two months: Tyco claims that they will have a $110 million deal; Securitas and Niscayah will again hold joint talks, and if these deals achieve results, there will be more than $7.098 billion worth of deals to break 2010 record of.

The first May investment was slightly higher than the same period of 2010, but it was mostly the result of the new line credit arrangement. The venture capital sector does not seem to change much.

The most inspiring of this business is reflected in the financial performance of security. Financial disclosures for the fourth quarter of 2010 and the first quarter of 2011 showed that, in most cases, revenue and profitability, the same quarter of 2010 and the whole year were considered to exceed 2009. With almost all expectations for improved trading conditions in 2011, revenue and earnings will also increase.

The 2010 stars include Axis, Mobotix, Basler, Authentec, and Bio-Key. Although their financial situation in the fourth quarter and 2009 have shown a downward trend. But these companies are very professional and perform well in high-growth regions and have performed strongly in the geographical market in 2010. They are companies that have devoted their energy to the research and development of IP network high-tech products.

Similarly, the world’s major security companies such as Tyco, Honeywell, Schneider, and Siemens have seen their profits increase. Bosch increased sales to restore profitability.

Therefore, despite the economic downturn, we expect that the market will continue to prosper in high-tech fields, and especially IT convergence can provide better return on investment. Focusing on vertical markets in emerging markets and the U.S. market will produce the best results. At the same time, the share of mainstream low-tech businesses will continue to decrease.