Apr 24 2010
Research and Markets has added a new report from Frost & Sullivan called ‘Analysis of the Middle East Fire Detection and Suppression Systems Market’. The report examines the Middle East market for fire suppression and detection systems in 2008.
The report provides a comprehensive study of the market dynamics such as restraints, drivers, strategies and challenges adopted in the market share analysis, industry best practices, and competitive structure.
The research report from Frost & Sullivan examines the competitive scenario and analyses the hidden opportunities available in the market. The report also talks about upcoming revenue possibilities for fire suppression systems, and examines numerous technologies used in this research. In this new report, expert analysts from Frost & Sullivan completely assess the market for fire suppression and detection technologies in the commercial, industrial, government and retail sectors.
According to Gulf Cooperation Council (GCC), rise in oil prices in the year 2008 had resulted in cumulative surpluses, and most of this revenue was used for industrial development and construction projects. Additionally, increased income and influx of emigrants have driven development retail and residential sectors. Commercial and industrial segments such as server rooms and refineries, where fire suppression systems are extensively used, accelerated the sale of such systems.
According to the analyst, fire suppression is a key safety measure in the Middle East, and mandatory fire regulations in the GCC market had boosted the demand for fire suppression and detection systems. The analyst further stated that in Dubai, stringent regulations on buildings make it mandatory to install sprinkler systems.
Current trend is moving towards intelligent systems rather than conventional systems. Previously, the UAE was the major player for fire suppression and detection systems in the Middle East. Now, the focus is more towards Qatar and Saudi Arabia, which are experiencing increased growth in the commercial and real estate development, despite economic slowdown.
Although the market for fire detection and suppression systems appears bright, some issues are faced in this domain. The key issue is the number of manufacturers is very limited in the region and increased import dependency on fire suppression and detection solutions results in supply and demand problems. Moreover, currency fluctuations and volatility of U.S. dollars adds pressure on the profit margins. Strong competition also deters new entrants from entering into the market.
According to the analyst, different laws in various countries create barriers and limit companies’ expansion plans, but understanding the regulations in different markets can speed up expansion plans. Another source of issue is that system installation attracts high labor costs and prevents entry of new participants. However, manufacturers are trying to reduce the costs as pricing remains the key factor for success. Majority of market participants provide service and maintenance, which helps in retaining customers.
To grow in this competitive market, companies must focus on countries like Kuwait, Qatar and Saudi Arabia. Streamlining supply chain management and sharing good rapport will help companies to gain entry into this domain. Product durability is also important and systems need to withstand severe weather conditions.
Source: http://www.researchandmarkets.com/