Executive Summary

Key Note estimates that the market for vehicle security products was worth £219m at manufacturers' selling prices (msp) in 1997. The broad product sectors in this market are locks, other mechanical devices (including mechanical immobilisers), tracking systems and other electronic devices. The latter includes electronic and electromechanical immobilisers, alarms and combined alarm and immobiliser systems. Security marking, e.g. window etching, accounts for a small share of the market. There is a high level of product innovation in the vehicle security industry, as the manufacturers have to keep ahead of the attempts of thieves to override their systems.

After a period of very strong growth, the market appears to be maturing. Demand depends to a large extent on the new car market, although there is still scope for aftermarket sales to upgrade or add security features to cars on the road.

The level of vehicle crime is decreasing, partly as a result of improved security. However, fewer stolen cars are being recovered, and it appears that more crimes are being committed by skilled professional thieves. Increasingly sophisticated devices are therefore needed to protect vehicles. Despite the improvement in the car crime rate, the level in the UK is far higher than the European average.

New car registrations in the UK have been rising annually for several years. They are expected to rise again in 1998, before levelling off and decreasing slightly. Output by the UK motor industry continues to rise and exports are increasing - although production of cars for the home market is declining. The product sector showing the strongest growth is that of stolen vehicle tracking, which only came on to the market in the UK towards the end of 1993. This sector still has very good prospects. There is also potential for greater protection of commercial vehicles (CVs) and their loads.

Government policy on alleviating the problems of traffic pollution and congestion could have a big impact on car sales and, consequently, on the vehicle security market. If the Government is successful in reducing the number of cars on the road, the overall vehicle security market could experience a gradual decline after 1998.

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