Brief Overview of Russian Security Systems Market – Part III

This is the third post of the series, where I attempt to make a general overview of the subject Russian market. It is impossible within the Blog to describe market in detail; however, I am trying to make some sketches – as we see it through ERVIST PRISM. Information is derived from open sources, it is cross-referenced; I am also providing some useful links.

BURGLAR AND FIRE ALARM SYSTEMS

Major end-users: retail and financial institutions, transportation, oil & gas production and industrial facilities, residential property and small to medium businesses

Market volume: In 2011 was approximately $476 million

Projected CAGR: 12-15% 

Remarks: There is a requirement for mandatory government certification. The government has implemented administrative and criminal responsibility for violating fire safety rules, and all buildings shall comply with fire safety requirements. Verticals, such as oil, gas, mining and transportation, have gained increased traction in fire protection systems market, while other verticals such as government, healthcare, manufacturing, academia, and institutional are gearing up.

“Security Systems” publication lists the following:

This market has a great potential in enhanced human machine interface solutions, smart building, seamless intelligent building applications, and wireless sensory networks. Intelligent sensors have networking capabilities, wherein a group of sensors and detectors can communicate easily through control units, leading to more efficiency in the systems. In my previous posts I provided some fire and fire risks statistics in Russia – and the level remains basically the same over the last three years. According market research, new advanced sensors have been developed – that provide accurate data to control units, as well as intelligent sensors that have networking capabilities. Remote users can access these intelligent sensors by connecting through LAN/WAN and Wi-Fi networks. However, for Russia, introduction of new high tech sensors is traditionally complex issue – due to rather awkward existing Government certification system.

One of the most optimistic factor for development of Burglar and Fire Alarm Systems in Russia is the enterprise market. Starting in 2006 the Government ceased the State regulation of Fire Security in Russia. The Government bodies stopped participation in acceptance tests of new sites and installations – the State Fire-Fighting Service was assigned to critical to national security installations. That, in fact, means that most of Russian businesses are responsible for their Fire Protection. Of course, this drastically changes the market and poses new challenges. There is a substantial increase of investments into end-user education both by major players and by medium–sized companies in the market. Almost every week throughout Russia, many training classes and seminars are taking place. This, naturally, to a greater level increases end-user awareness. Industry players and homeowners are ever more interested in integrated solutions. I am planning to have a more detailed post that will discuss industrial fire security, but here I would like to provide this picture of the Russian market, and the way Evrist Group addresses it.

 An interesting development in Russia is in Fire Mapping and Analytics. Some time in the future I will analyze what is going on - there are good descriptions of existing systems in these sources:

• Russian System of Remote Monitoring of Forest Fires
• Monitoring of Fire Environment & Projects of Emergencies

Here I would like to address the reader to a source that provides The Fire Information for Resource Management System (FIRMS) real-time map of fires in Russia:

This Concludes Part III – More to follow….

ERVIST PRISM – What We See in Russian Security Products Market

What is this Blog about? Is this another advertising show-off – a strenuous effort to sell and re-sell? This may be the consideration that strikes your mind when you read the tile. Another thing – what is the ERVIST PRISM? Is it transparent and impartial? Or, this is just another biased and distorted view, taking advantage of scarce and fragmented information flow?

      Well, to understand the idea behind this Blog, we need to address the history of ERVIST Group. 17 years ago,  a new venture was started by a group of engineers that worked in, and had close connections with ELERON – the one and only entity that designed, produced, installed and maintained security systems for the Government. This very special organization cultivates in its employees a profound feeling of responsibility, competence, power and professionalism in performance – and these are the deep roots of ERVIST subsequent success. It was a difficult time for Russian economy, and twice more challenging for a start-up to survive. The promoters’ team that was headed by Mikhail Rukin, its current General Director, slowly, but surely, started accumulating design and engineering experience in security systems market. One of the most exciting success stories of ERVIST is the history of providing security solutions for Beeline - one of the biggest players in Russian Telecommunications (this I plan to cover in a separate post). Anyways, as the business started developing, the Company became focused on a very specific niche – provision of intruder and fire alarm systems for hazardous environments, including explosion-proof solutions. The Company evolved in a Group, which covers at this time the Central Region (Moscow), Siberia (Novosibirsk) and North-West (St. Petersburg). Currently, the snapshot of the company is reflected in the following slides:

 So, does the Company had a sound market? Yes, in my following posts I will describe in detail the current situation in the Russian market. Here I would like to show the following slide that relates to the existing fire situation in Russia:

Source: Zaretsky A.D. Refining Humanitarian Part of Russian Fire Security

Of course (analyzing the data in mentioned material), Russia, as compared to the world fire leader – USA (1.6-1.7 mln. fires a year), is far behind, but  still, we are among the Top 10 countries of the world. Moreover, the Russian Federation holds number one position in the world statistics of casualties per 100,000 of population. Thus, the business direction of ERVIST - fire alarm systems for hazardous environments – seems to be correct and has a great potential. This will serve the country – making the life of people more secure and safe.

This concludes the first Blog post – please, follow us on the developments of Russian market – as we see it from our 17-years experience – the ERVIST PRISM….