The market for security and fire protection products and services in the UK is estimated at over Ł5bn in 2000, according to a report by Key Note publications Ltd dated December 2000. This is the value at end-user prices, allowing for any installation and maintenance costs of equipment. The overall market has been showing growth for several years, although the performance of the various market sectors varies. Overall market growth is forecast to be around 7% at current prices in 2005 and 2006.

Below is a chart showing an analysis of the key segments of the Security Industry

Source: Hallcrest Report: SDM, IDC, Fraadonia Group, Mallon & Associates and Morgan Keegan Research.

As you can see from the above, the physical protection sector is 12% of the total. If we assume that the physical protection sector is an average sector and thus growing at 7% per annum, and that it has grown at an average rate of 7% since 2000, then this sector will exceed Ł900 million p.a. by 2006.

However, this physical protection segment includes locks, safes and other physical barriers, such as shutters and turnstiles, so the market that Clear Security is operating in is smaller than the Ł900m figure above.

While the market for commercial and industrial users has reached a plateau in recent years, the market for domestic security systems and devices is showing continuous growth and development. This is due in part to the media, industry bodies, and the emergency services continuing to raise awareness of the issues surrounding domestic security and fire safety. Consequently we believe it should occupy a substantial market.