Market Report: The Turkish Fire and Security Market 2009/2010

21.12.2010 -
In this article, we will overall evaluate 2009 in accordance with the views of the security companies operating in Turkey. Our value estimates related to these sectors which cann...

In this article, we will overall evaluate 2009 in accordance with the views of the security companies operating in Turkey. Our value estimates related to these sectors which cannot be scaled in Turkiye are thoroughly based on declarations. The most important reason for that is said to be the products brought into the country with unregistered or different GTIP (Turkish Customs Tariff and Tariff Classification of Goods) numbers.

When you read the information we provide, you will see that the estimations that the companies put forward about the sector match each other. The numbers mentioned will be approximate to the number which we will really see when the sector becomes scalable.

Some companies preferred not to provide any information for the article that has been prepared in accordance with the three-month-long interviews. However, the data that we share with you here are not only the views that we got face-to-face for this article but also the accumulation of different studies that we as A&S Turkey have fulfilled within the sector. Here is the evaluation of the Security and Fire Industry in Turkey in 2009!

A year that was good for some and bad for others

Most of the companies in the sector, just like the ones all over the world, consider 2009 difficult. "The year started in an atmosphere of panic," says Tarkan Tuncel, General Manager, Kekova Security Systems, one of the system integrator companies which cooperate with many world-renowned brands like Anixter, Schrack Seconet, Samsung. Indeed, with the crisis which started especially in the real estate, the deceleration in the building sector deeply affected the poor flow projects. According to Levent Yıldırım, Sales Manager, FS Products, Siemens Building Technologies, it is possible to say the there was a 20-25% contraction in the building sector. Sharing the same opinion, İlkin Özel, Country Manager, Building Automation, Honeywell Turkey, says that the sales of the products of middle and high segments were intensely affected, and in the projects in 2009 mostly the middle segment products had to be preferred.

İsmail Uzelli, General Manager, Sensormatic Turkey, states that the sector which grows around 10% every year shrank around 10% that year. Uzelli adds that the penetration into the sector has increased; however, the market value has decreased due to the tendency towards inexpensive, temporary solutions.

Murat Barut, Sales Manager, Next&Next Star - which does not participate in the projects for security but for the manufacturer, importer and wholesales side of the sector - says that especially the first half of 2009 was not much promising for the sector. Barut adds that the powerful ones in the sector proved themselves once again and those who caused harm to the sector were eliminated.

Kont Security Systems, one of the distributors in Turkey of Samsung Techwin products, is among those who had a good year. Security Systems Sales Manager Ercan Tekyıldız thinks the sector was less affected than expected. Pelco and Anixter, offering IP surveillance system solutions which are a shining star in Turkey, agree with Kont. Bülent Tekkaya, Business Development Manager, Anixter, states that their most important advantage in this field is that their competitors offer IP products as well, and the sector consequently improves. Tekkaya who says that issues like cabling, switching, servers and storage are also included in the business when they offer IP solutions adds that this year they benefited from offering turnkey solutions, and that their solution partners also worked in the same pattern. Anixter Turkey that deals with only CCTV had a much better year than other Anixters in Europe.

Pelco Turkey Country Manager Yusuf Ziya Öncel states that although the analog and IP CCTV share of Pelco Turkey is less than 1% among the other Pelco offices in the world, this reaches up to 10% when only IP is taken into consideration.

The size of the Turkish market for fire and security market in 2009

What is the market size for 2009 we are talking about when take an overall look at Turkey? The sector has size of 400-450 million dollar, estimates Mustafa Altuntaş, Region Sales Manager, Turkey, Israel Turkic Republics, GE. CCTV (including small IP cameras) has $200-220 million of this size, fire has $100 million, and the rest belongs to access control and intrusion alarm.

In order to improve the vendor channel, Siemens performed face-to-face interviews with approximately 150 companies in 2008 as Market Transparency. It was, as a result, found out that the market size for the fire detection was around $140 million, and $210 million for the electronic security. Levent Yıldırım says that the contraction in the building sector affected both of the sectors at around 30%, and that the value in 2009 for the fire protection was nearly $100 million, and around $150 million for the security.

Bülent Çobanoğlu, General Manager, Senkron Güvenlik - a solution partner of Honeywell Integrated Security and Honeywell Safety in Turkey - points out that he and the integrator members at the sector association with which he also was affiliated thought a few years ago that the market would reach $1 billion before 2010; however, this prevision turned out to be an urban legend due to the crises. Çobanoğlu declared according to the data collected from the association that the sector size for the registered electronic security was around $450 million. According to Çobanoğlu, the scatter of this size is: 60% surveillance systems (nearly $250 million), 18% fire detection and extinguishers ($85 million), 3% labor cost, and the rest is access control, perimeter security and intrusion detection.

As a result of the market research they, like Senkron, performed in Turkey with their internal resources, Sensormatic states that the sector is around $450 million after the 10% downsizing.

While Honeywell Turkey Building Automation Country Manager İlkin Özel says that there could be data relating to the last year as nearly $50 million for fire section in the lower and middle segments excluding the government, Anixter which offers service only for CCTV estimates that last year the scalable part of the market was around $120 million and thinks that proprietary products constituted $30-40 million of this amount.

We can in general say that the security and fire protection sector in Turkey in 2009 was approximately $450 million. In this sector which keeps improving although it was, like all the sectors, affected by the crisis throughout the world, far more projects are to be installed since Turkey and the neighboring countries are unsaturated markets.

The distribution of the $ 450-million-value sector



















IP: The shining star of 2009

As we already mentioned in the beginning of our article, 2009 was good for some. Especially the interest in the IP surveillance systems was quite enormous. However, as we consider the shares and the distribution in the market, it is obvious that in general the surveillance systems were the prominent products in the Turkish Security Sector. Honeywell Turkey Building Automation Country Manager İlkin Özel points out that DVRs are now replaced with backup systems over the network.

As a result of the move towards IP, IT companies have also become a part of the security. Pelco Turkey Country Manager Yusuf Ziya Öncel states that the balance of the security sector will from now on change, many important IT companies in the world have penetrated into the security sector, and it is those IT companies which will define the future of the sector. Saying that the sector will grow thanks to that, Öncel adds, "The companies I mentioned are the ones which are good at marketing, have a turnover around $300-600 million, and have more than 1000 employees. Wherever there are computers, they are there. They are already involved in every project including the government."

Sensormatic Turkey General Manager İsmail Uzelli, who is one of those who say that the number of the companies is around 4000 with the IT companies penetrating into the sector, thinks that the sector cannot stand such a big number.

Mustafa Altuntaş, Region Sales Manager, Turkey, Israel Turkic Republics, GE, warns both the sector and the end user about IP. While stating that there is a big difference especially in the IP between the installation of a 48-camera system design and a 1000-camera system design, Altuntaş actually emphasizes that the security sector has to pay attention to the trends and adds that the companies that cannot adapt will consequently become weaker in this field.

In addition to IP, video analytics is another prominent issue. Bülent Tekkaya, Business Development Manager at Anixter which is one of the companies that have been supporting IP since the day it penetrated into the security market, points out that while choosing the products, user in this field should scrutinize what their needs really are, and avoid purchasing the product without trying or using it at least for a short time. Stating that this field will improve more and there already are good products available, Tekkaya adds, "The companies that sell this product should correctly position and come up with the correct product so that we won't see any products that have been incorrectly built and thrown away because of consequently causing false alarms."

We had a year when the importance of integration, rather than products, was realized, emphasizes Yahyahan Muslubaş, Sales and Marketing Director, Ekin Teknoloji that is the Turkish Distributor of Sanyo and has fulfilled important projects especially in the City Surveillance Systems vertical market in Turkey.

Developments on the fire side are not as fast as they are on the electronic security side. Mustafa Altuntaş from GE Turkey says that the product that made an impression in this field in 2009 was the Emergency Announcement System. Adding that whether this could in fact be considered a fire product is a different issue, Altuntaş says, "What I would like to emphasize is the realization that in the fire and emergency announcement there must be wider integrations rather than a sole contact."

2009 Vertical markets

2009 was a year when projects of shopping centers and hotels were on the front foot. In 2009 when a number of shopping centers of miscellaneous sizes were founded, banks were also one of the vertical markets that hit the headlines with especially the enhancements they had to fulfill at their ATMs due to the obligation put forward by the Banking Regulation and Supervision Agency. Projects of city surveillance systems that had started in 2008 and continued in 2009 were also on the front foot.

Except for these markets, there was not much activity in the vertical markets like transportation, roads and tunnels, energy. 2009 was, as all the sector stated, a year when not a new project, other than the obligatory ones, was developed.

Impressive Projects

We hear many projects that are being mentioned; however, one of the most important projects which everyone is talking about is the Sabiha Gökçen Airport project. Siemens undertook the fire and announcement system of the project for $1 million, and the camera and network substructure of the project which was undertaken by Corvus with Pelco solutions cost approximately $5-6 million. In the project, an IP system of 1200 cameras in total, 900 of which were 2.1-megapixel full-HD cameras which were used for the first time in the world.

There were two big companies in the two different stages of the project during the renewals on the Baku-Ceyhan-Tbilisi Pipeline: Honeywell and Siemens. Siemens undertook the part where the fiber optical communication structure of the first 87 km. of the 100-km-long part of the pipeline would be converted into cables for security with special sensors in order for them to be tapped. This had a project value close to $1 million. Honeywell undertook the security of the Pump Stations. At 6 different points were installed camera systems, video motion detection, detection with micro phonic cables on the fences, and card access systems. Honeywell's industrial division deployed at the main station a safety system against gas and fire. The almost-$1.5million part of the project which is, in total, approximately $2.5 million is security.

Senkron Güvenlik General Manager Bülent Çobanoğlu shared with us the details of the project which motivates the market during the crisis and is known in the sector as the Banking Regulation and Supervision Agency ATM project. 45 Banks have activities in Turkey and totally they have 22.000 ATMs. Approximate cost of one ATM is around $3000. According to Çobanoğlu, this project cost the market at a point between $66 million and $100 million. In this project, Senkron undertook the projects of Garanti Bankası, Eurobank, Tekfen and Millenium Bank.

Withing the same project is an IP-based solution which is fulfilled by Anixter and its solution partner Kekova. The project which remains anonymous as the customer wishes is probably the only IP project installed at banks in Turkey. Anixter Business Development Manager Bülent Tekkaya points out that banks are the first sector to use all kinds of technology. "As for IT, products have to be replaced every 5-6 years. However, it is not the same for the security. If you have correctly configured your investment, you can use it for many years. Thus, our customer showed courage to convert into IP whereas many of the banks keep using analog solutions," says Tekkaya. Stating that Kekova fulfilled a very successful project from cabling to the establishment of the control center, Tekkaya adds that the project was fulfilled with XDSL at 603 points.

The Ziraat Bankası Project which was in abeyance for a long time is undertaken by EDS and Kent Güvenlik., Kent Güvenlik joined the project which EDS provided Samsung cameras for with the DVRs of Hikvision which were brought by Elektromaks.

The projects of Presidency Tarabya and Çankaya Residences are among the projects continuing through the IP systems. The project which is being fulfilled by Fides Ankara with Pelco products has a value of almost $1 million.

Project highlights in 2009


Turkish companies are wherever Turkish contractors are

When Turkey's location and the region it is in is taken into consideration, that it unites the East and the West and has the flexibility to penetrate into the markets which Europe and America cannot reach makes it an important market as a country. The Turkish contractors who have undertaken many important projects either in Turkic Republics and Russia or in the Middle East and recently in Northern Africa prefer to cooperate with the Turkish companies if they have the freedom to under the circumstances of the country they are in. Furthermore, our closeness to the Balkan States gives the chance to get involved in different projects.

Even if the number of these projects decreased in the crisis period, the projects undertaken in these unsaturated markets in question are indeed enormous ones. For example, the Capital Towers Project which Siemens fulfilled in Moscow. "It is one the biggest projects I have ever been involved in, seen, heard of and been fulfilled. A really complex integration with 10.000 fire detectors or so, 30 fire control panels, 500 cameras, recorders, streamers, 600 card readers, and all kinds of integration software. Building Automation is Siemens and all the building operates in a fully integrated way," says about the project Levent Yıldırım, Siemens Building Technologies FS Products Sales Manager, that has been in the sector for 22 years. On the fire and security part of this really exciting project is worth around $2 million.

Mustafa Altuntaş from GE points out that one of the most important aspects of 2009 is that they, moving through the path the Turkish contractors started, penetrated into markets like Russia, Azerbaijan, Turkmenistan, Kazakhstan, Libya and joined important and continuous projects. Specifying the university projects in Libya among these, Altuntaş says, "There have been projects done with significant resources from Turkey. There were fire alarm projects with 2500 panels, systems with 10-15 thousand detectors. There were applications in which there were 1000-1500 cameras, and classical conventional systems were deployed."

Savronik, one of the solution partners of Pelco, is also the company that provided the surveillance in an enormous tunnel project that connects Albania to Europe, which is cooperatively built by Enka and an American building company, Bechtel. The project value is around $1 million.

Pelco Turkey Country Manager points out that the Turkish contractors are on the rise again in the region of Libya, Algeria and Morocco. Öncel says that since there were not many projects in 2009 due to the crisis, tall building projects will increase around that region next year.

Bülent Çobanoğlu, General Manager, Senkron Güvenlik - one of the solution partners of Honeywell in Turkey, emphasizes the necessity of correctly evaluating the location of the country: "Big companies like Honeywell first prefers to join risky markets which they do not consider stable with solution partners. When the market becomes stable, they make their own investments if the region is a valuable one." Stating that last year they forced the markets abroad because of the crisis, Çobanoğlu says that they completed the weak flow project of a factory in Bulgaria and a housing estate in Romania, and have the projects of an agency of a multi-national pharmacy company in Georgia and a 5-star hotel and a business center in Kazakhstan still continuing. All of them are projects led by Honeywell.

Çobanoğlu points out a truth, too. Countries increase investments on themselves as they become more powerful. In Russia, government buildings are being built by their own companies. If the integrator does not have the right to make out an invoice or have an office there, they have difficulty undertaking business. There are, of course, various ways to stay there. That means sharing with them a part of your income.

When we check out the neighboring countries of Turkey, we can say that making the right investment, it is still possible to drum up much business not only in Turkey but also in the region.

Those who came to the fore in 2009

This was a question that could be answered in different ways for everybody. The investments made on the bank ATMs came to the fore in 2009, states Osman Yıldız, General Manager, EDS - manufacturer in security and fire sectors as well as the distributor of world-famous brands like GE, Acti, Merit Lilin, and Samsung Techwin. We can add Senkron and Kekova agreeing with him.

On the other hand, Anixter, Ekin Teknoloji and Kont Güvenlik points out the development of HD cameras. According to Bülent Tekkaya from Anixter, HDTV cameras will be much talked about in 2010. "We moved one step further in megapixel in 2009. These cameras will play an important role in the development of video analytics."

İlkin Özel from Honeywell, however, points put the penetration of IT into the sector. Stating that IT and security should meet in the middle, Özel points out that as for the security, how the systems will be based on IT, and as for IT not only how the camera size will be included in the system but also how the entire security system will be configured must now be learnt.

As for the issues that drew attention in 2009, Özel adds that they observed companies cooperate with many companies rather than with only one distributor.

While the merger of UTC and GE in global meaning is, of course, important for GE, Altuntaş says that the troubles experienced in the import processes and that import came to a stop at one point mean the stop point for a sector that import 80-90%.

According to Öncel from Pelco, on the other hand, that the technology improved rapidly and that when the products developed in one year are checked out, the fulfilled R&D investments were quickly launched before thoroughly evaluating whether they were profitable or not set the agenda of 2009 in an interesting and worrying way. Stating that the mergers and the integration of giants with giants like purchase of GE by UTC, integration of Samsung Electronics into Samsung Techwin, purchase of Sanyo by Panasonic have disorganized everything, Öncel says that 2009 was a year when everything changed quite fast.

As for the fire protection, what came to the fore in 2009 was the Symposium which was held for the first time in Turkey by TÜYAK, Turkey Fire Protection Association, and the new fire regulation presented at the symposium. Altar Çiçekçi, General Manager, AIC Group, working with Walraven and Tangit, a member of TÜYAK, expert in passive fire protectors, says, "There was not an accredited test laboratory in our country. That there is a laboratory where these tests can be done beginning from 2009 is an important development for the sector."

2010 will not be easy, either

2009 was not a year to prepare for 2010. The year when mostly what you already had was protected gained some acceleration when those that could not be stopped moved on to the second half of the year. However, throughout the sector, it is expected that the first half of 2010 will most probably continue with developments of new projects since there were not many projects developed and there will be some activity in the second half.

When we check out the vertical markets, the expectation is that transportation, including roads and tunnels, will come to the fore. According the information provided by Bülent Çobanoğlu, there are 150 shopping center projects awaiting in Anatolia. Under these circumstances, shopping centers are likely to come again to the fore. Honeywell thinks we will see many projects all sizes since there is still need for offices and business buildings.

EDS and Sensormatic Turkey expect the market to grow 15% in 2010. EDS General Manager Osman Yıldız believes that 2010 will be a year of fire detection. Altuntaş from GE thinks that products like linear-type cable or fiber optical cable fire protection systems or CCTV fire detection systems will gain popularity in 2010.

IP will not slow down in 2010. Anixter is hopeful about the systems which especially universities will install. Anixter Sales Representative Ayşegül Demirkol comments about universities, "In a different way from the other parts of the government, universities position their projects much more correctly. Furthermore, since their land is larger, projects are usually in medium or large sizes."

In 2010, integration will be one of the issues that will be much talked about in the sector. That IT substructure is beginning to be used intensively and fire protection advances in that direction although in a slow pace will mean all the systems working cooperatively with each other will be on the agenda again.


Trade show for the Turkish market: 

ISAF 2010, which is the only international security and fire exhibition in Turkiye, was held in Istanbul Expo Center between 23-26 September, 2010. 139 participator companies from 20 countries have exhibited the most developed products and latest technologies of 310 exhibitors in total. 16,534 professionals from 38 countries are flocked to the exhibition.

The 2011 show will be held from September 22 to 25 2011 in Istanbul.



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Sonderheft 30 Jahre GIT SICHERHEIT

Mit einem Sonderheft feiert Wiley 30 Jahre GIT SICHERHEIT

Infos zu 30 Jahre GIT SICHERHEIT


Media Kit GIT SECURITY 2020 - Media Kits all publications