Security Awareness Fuels Indian Fire and Gas Detection Market Growth

With India opening up its markets to international participants, the attendant rise in construction activity in industrial sectors such as oil and gas, power, and petrochemicals has made the country a favored destination for investors in fire and gas detection systems. The simultaneous rise in awareness about the need for security has helped the Indian fire and gas detection market grow at an unprecedented pace over the last couple of years.

New analysis from Frost & Sullivan (buildingtechnologies.frost.com), Indian Fire and Gas Detection Systems Market, finds that market earned revenues of INR 7165 million in 2008 and estimates this to reach INR 16208.5 million in 2013. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets: fire detection systems (detectors, fire alarm panels) and gas detection systems (toxic gas detectors and flammable gas detectors).

If you are interested more information on this study, please send an email to Ravinder Kaur / Nimisha Iyer, Corporate Communications, at ravinder.kaur[.]frost.com / niyer[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

The market will also be buoyed by the growth of the IT and IT-enabled services (ITES) sector – one of the major end users of security products.

"While the Telecom, Railways, Airports and IT & ITES sectors offers a favorable platform for the fire detection equipment market in the commercial space, the industrial sector stimulates the gas detection equipment market," says Frost & Sullivan Research Analyst Mayank Batra. "The increasing focus on the oil and gas and metals industries has fostered an encouraging investment environment for the fire and gas detection market in India."

Such heightened demand for security has placed greater pressure on the supply market to grow in tandem, overcoming the issues of high costs and low budgets. The market is expected to exhibit new usage patterns and participants will have to figure out ways to cope with them and use them to their advantage.

"For instance, until a few years back, there was almost no usage of liquefied petroleum gas (LPG) or compressed natural gas (CNG) as alternate fuels in commercial and residential sectors," observes fellow analyst Suganya Rajan. "However, of late, the use of gas pipeline for gas supply in residential complexes has improved, promoting the growth of gas detection systems."

Manufacturers and suppliers have also done their bit by spreading awareness to shift end-user perception in favor of technically sophisticated fire and gas detection systems and participants are expected to capitalize on this shift by providing technologically advanced products. This enhanced awareness has caused sectors such as steel to start using gas detection systems.

Public infrastructure growth such as new airports and commercial office spaces are further fueling the development of detection systems in India.

As most companies in the market are foreign participants, currency exchange volatility will affect their bottom line growth. Most projects are generated from the government sector, where the payment cycle is around three to four months. This creates a crunch in the working capital. Companies that have not hedged against these currency fluctuations will be challenged when the Indian currency fluctuates against the US dollar.

Meanwhile, due to the current economic conditions, a few construction projects were deferred, especially in the IT and ITES sectors.

"Fire and gas detection companies should focus on high-growth sectors such as the industrial units, especially petrochemical, metals, and power," notes Rajan. "Similarly, companies should concentrate on Tier II cities that are offering abundant opportunities in terms of commercial infrastructure development."

Indian Fire and Gas Detection Systems Market is part of the Building Management Technologies Growth Partnership Service program, which also includes research in the following markets: the European Lighting market: impact of the EU ban on inefficient lamps, North American HVAC air filters market, and analysis of the district cooling market in the Middle East region. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Source: http://www.frost.com

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